Coll 28/61 ‘Persia. Trade Reports. Bundar Abbas & Lingah, 1925/6–’ [‎30r] (59/245)

obvious, viz., the higher the valuation, the greater
is the amount of their export certificate and the
greater, therefore, is the value of the Import certi
ficate obtained thereagainst. The result of this
over-valuation is that they are enabled to import
to a greater value than their exports ; consequently
the foreign exchange resulting from their exports
is insufficient to pay for their imports, and the
merchants are continually on the look-out for oppor
tunities to buy foreign exchange to make up the
deficit. This is perhaps the reason for the higher
value of foreign currency in the bazaar and the
readiness of the merchants to buy from the Banks
without having to give any undertaking as to the
specific disposal of such exchange, if it is available.
In last year’s report reference was made to the
increased difficulties with which the Hindu merchants
were being faced in the conduct of their once exten
sive business in Bandar Abbas. During the year
under review, several of these Hindu traders gave
up their business and returned to India.
Our figures in Appendix I as compared with last
year’s figures show a considerable decrease in the
import of sugar, but this is not a fair comparison
for average figures, as it appears that the market
was existing on old stock prior to the commence
ment of the import of sugar on a large scale by the
Russians under their Monopoly which began im
mediately after the New year 1311.
(b) New items of trade. —The Anglo-Persian Oil
Company removed their Agency An office of the East India Company and, later, of the British Raj, headed by an agent. from Messrs.
Dorabjee & Co. during the latter part of the year
1310, and established their own office under one
of their Persian Covenanted staff. Their business
here and their forwarding upcountry are conducted
by this Office. They state that this is more satis
factory An East India Company trading post. and in time will become more economical.
The Russians are reported to have brought some
quantities of lubricating oil for sale here but not
to any great extent, and the Anglo-Persian Oil
Company are not apprehensive of serious competi
tion in this line. Russian competition in the oil
market should not be overlooked however.
The growth of tobacco in the Minab district is
said to have made considerable advances in recent
years, and the prospects are said to be good.
(c) New Trade Channels. —-Inland there is nothing
new to report. Under the trading agreement recent
ly entered into between Persia and Russia, large
consignments of monopoly goods are carried to this
port by the Soviet Mercantile Fleet. These ships
endeavour to obtain cargoes for Up-Gulf ports but
owing to the irregularities of their arrival they
cannot be said to do much in this line.
(d) Growth of Foreign competition and danger to
British interests resulting therefrom. —In the last
paragraph, mention was made of the visits to this
port of the ships of the Soviet Mercantile Fleet
The transport by them of large quantities of sugar,
piece -g oods, matches under the Trading agreement
is naturally prejudicial to the activities of the British
Companies in the Gulf. The diversion to Russia
of such a large part of Persia’s trade will divert
also a corresponding amount of the carrying trade.
This is where the effect of the Russo-Persian Trading
agreement will first make itself felt although there
is no doubt but that the agreement as a whole is
prejudicial to British trade. At the same time the
effect of this will not be as noticeable as it would
have been a few years ago, for the exchange and
import restrictions of the past few years have lessened
greatly the trade of this port and neighbourhood with
Great Britain. From the published list of the quotas
allotted to Russia under the Trading agreeent can
readily be seen the nature and extent of this competi
tion. The import of Manchester piece-goods at this
port has almost ceased although there is a demand
for a limited quantity.
Japanese piece-goods of a cheap quality have
gained ground in the past year, and it is said that
this make is second in market consumption. The
importers of Japanese goods will probably meet
with similar difficulties to those of British, but
being a cheaper product the former, once imported,
will have a readier market. Apart from the above-
mentioned, British interests do not appear to have
been affected during the past year.
(e) The Russians—Their Trading methods — Popu
larity—Success or failure. —The granting to the .
Russians by the Persian Government under the j
Trading agreement of a monopoly of certain goods
notably sugar, matches and oil gives that country j
an advantage over any other in the Persian trade. I
In addition to this monopoly, the Russians have
received a large quota of almost every other import
into this country. Their trading methods do not
please the local merchants and neither are they
popular, but as far as trade is concerned, it is a
case of needs must. The Russian Company when
selling a consignment of piece-goods, for example,
generally foist on to the buyer some cases of sewing
machines, sewing thread, clocks or other sundry
goods which the latter does not want, and will
probably have to sell at a loss. As there are no
other sellers of piece-goods in the market at the
time, he is forced to accept these ‘ extras ’ or leave
the business alone. It is said that in many cases
they exact part payment in advance and then are
very slack in delivery. Such methods are definite
ly unpopular and the obvious advantage they have
over the ordinary Persian importer is resented.
The Russian Company evidently intend to do H
considerable business at this place. Their dwelling
house has been enlarged to hold perhaps six people
and their office is being commodiously furnished
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