Coll 28/39 ‘Persia: Printed Correspondence 1929-1936’ [‎199v] (409/1174)

representing approximately three and a quarter million pounds, consists
of the total holdings abroad of the Persian Government This amount
tallies approximately with the three million pounds hazarded in lehran
despatch No. 361 of July 28th last.
4 . Colonel Khosrovi said that the project of the Bourse, also referred
to in the Bank’s Annual Report, had likewise been approved, and that a
buildin^ for this purpose would be erected in the Place lekieh, near the
« met of four hundred thousand Tomans 10,000 Persian dinars, or a gold coin of that value. (about fifty-thousand
pounds).
5 . I am sending copies of this despatch to the Department of Overseas
Trade [No. 0. T. (B.) 200], to the Foreign Secretary to the Government of
India (No. 238), and to His Majesty’s Ambassador at Baghdad (No. 86 ).
( 128 )
Despatch from His Majesty’s Minister, Tehran, to the Foreign Office,
London, No. 527-E., dated the 1st December 1934.
\ * f
With reference to my despatch No. 502-E. of the 15th November last,
[Serial No. (120)], I have the honour to transmit herewith a summary of the
introduction to the Annual Report of the National Bank of Persia which
contains a brief review of the economic and financial developments in the
country during the year 1933-34.
2 . No special comment is called for in connection with the Summary,
most of the features of which have been previously reported. The claim
that the State receipts continue to show a surplus over expenditure is again
made, but is not substantiated. In studying the figures of foreign trade
given it must be recollected that the most important item, namely exports
of mineral oil, is excluded, and that a real favourable balance is shown as a
technical adverse balance.
3 . Copies of these despatch, together with its enclosure, are being sent
to the Department of Overseas Trade (No. 0. T.-B.-202). The Foreign
Secretary to the Government of India (No. 243) and His Majesty’s Ambas
sador at Baghdad (No. 85). i
Enclosure in Serial No. (128).
Economic Situation in 1312.
{Summary of introduction to report of National Bank of Persia for the year
< 131 ?.)
\
The general situation has been affected by world depression, the fall in
the value"of the dollar and pound, increasing tariffs, etc., Government
stepped in to prevent discouragement of individual traders.
Government action included public works (railways, roads, factories),
establishment of commercial, industrial and banking institutions, direct
and indirect subsidies to private enterprise, municipal development. Crops
in 1312 were generally satisfactory and, being mainly for internal con
sumption the country was spared some of the consequences of external
fluctuations. The Bank has pursued a helpful policy but has had to be
conservative owing to its recent establishment and lack of adequate reserves.
Finance and Public Works. —Same banking and monetary conditions
are claimed, State receipts always showing a large favourable balance
mainlv devoted to financing public works. Expenditure on railway was
Rials 239,945,775 and £66,506—say £3,066,000. Expenditure on roads
was Rials 72,157,994 (about £900,000). The completion of a sugar factory An East India Company trading post.
at Kehrizak and a cement factory An East India Company trading post. at Tehran, the beginning of a sugar
factory An East India Company trading post. at Shahi and the extension of State-owned mines are recorded.