Coll 28/39 ‘Persia: Printed Correspondence 1929-1936’ [‎491v] (993/1174)

147
Letter prom His Majesty’s Consulate Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the
Persian Gulp, to His Majesty’s Minister, Tehran, No. 134/2079,
DATED THE 10TH SEPTEMBER 1930.
With reference to paragraphs 2 and 3 of letter No. C. A. 6/IA., of May ^
2nd last from the Officer - !n."charge of Commercial Affairs, the enclosed tables
giving in the one case the value of total imports as well as those of tea and
sugar, for Bahrein, Kuwait and Muscat during the years 1922-23 to 1928-29,
and in the other, the actual percentage of total imports represented by tea
and sugar, will I think be of interest to you.
o These figures show that practically no smuggling now takes place
froineither Kuwait or Muscat a fact which is confirmed by reports I have
received from both places.
3. As regards Bahrein, there has been a fairly active contraband trade
across the Gulf to Persia of recent years but I am told that this is on the
decrease owing to the increasing difficulty of getting cargoes from the coast
into the interior; in any case there is no justification for the assumption
that the whole prospenty of these Islands is attributable to smuggling the
figure show that in Bahrein’s average yearly iniporrs of close on £2,000,000
sugar and tea account for but £100,000. Hardly a vital factor or prospenty
even if it were all smuggled into Persia, which ot course it is not.
4. It must be realised that Behrein is becoming to an increasing extent
the entrepot for Nejd and the greater part of North Eastern Arabia, and
that this port has lately, for reasons which it is not necessary to enter into
here, to a very considerable degree usurped the position formerly held by
Kuwait, and a large part of her tea and sugar imports go to supply the
needs of the interior of Arabia. This accounts for the increase in sugar and
tea imports of recent years, probably more than smuggling.
5. In any review of the economic condition of the Arab Coast, the only
factor which really need'be considered is the Pearl industry. Bahrein ; done
exports annually* some H to 2 million pounds worth of pearls, probably
more, since pearls are always undervalued, and in good years the expor
may actually amount to as much as £5,000,000. In my opinion smuggling
from Bahrein carried on in the main by Persian merchants—cannot in tne
light of the facts be considered to constitute more than an unimportant ana
spasmodic trade, or which the extent is apt to be considerably exagger Ae
on account of its notorious character and imaginative appeal.
6. While the present moment, owing to the slump in the pearl market,
is not particularly opportune for the development of British Trade on c
Arab Coast, it is to be hoped that in the ordinary course, conditions w ^
shortly improve and it would seem desirable to carry out a general P re . inl !
nary survey of the market so that when the purchasing power of the a
principalities is regained, British and Indian merchants may be rea y o
profit by it.
7. I would therefore suggest if you see no objection, that Mr. Blanch
should accompany me on a tour of the Arab ports which I propost .
undertake in the “ Patrick Stewart ” about the end of October, a g
approximately 3 weeks or a month. He could collect information ro ^
Political Agents, ipade personal enquiries from local Indian an r ,
firms and would be more qualified at the end of the tour to re Pv - n a
enquiries from the Department of Overseas Trade, etc., and would o
wider outlook of trade possibilities in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
8. As Mr. Blanch will be transported free of charge no additional cost
will be involved.
9. I am sending a copy of this despatch to the Departmeut of Ove.s as
Trade.