Coll 28/41 ‘Persia. Trade Reports. Kerman 1924–’ [‎56v] (112/313)

Germany’s share of the import trade, as reported
previously, dropped considerably, chiefly owing to
German synthetic dyes having lost much of their
popularity in so far as their use in the carpet industry
is concerned.
It may be noted that although Germans, Russian 8
and Japanese have curtailed their commitment 8
and activities to a large extent, British trade in the
province is practically non-existent.
(/) The Russians—their trading methods —
popularity—Success or failure. —There was hardly
any Russian trade activity in the province during
the year. It is said that Soviet Trade authorities
in Tehran sent a consignment of 200 large tins
of Russian kerosene to their former representative
at Kerman, who, it is believed, refused to handle
the consignment, and the oil was eventually dis
posed off by a third party.
A local trader who attempted to sell Russian
kerosene in small A. P. 0. C. tins was prosecuted
by the Company’s representative in Kerman, at the
latter part of the year and was found guilty by the
local courts. It is hoped that the incident will put
a stop to further similar encroachments on the
company’s rights.
For the time being Russian competition with A.
P. 0. C. in connection with the sale of petrol, lubri
cating oil and kerosene oil may safely be put out of
consideration. In other respects also, there was
hardly any direct business done with the Russians
during the year so far as the province of Kerman
is concerned.
(g) Credit offered by foreign firms as opposed to
those granted by British firms .—As pointed out in
previous reports, credit facilities offered by foreign
firms can hardly be expected to influence trade in
general under the existing circumstances, when
there is hardly any trade business at all. No inci
dence was brought to notice where foreign firms
granted better credit than the British firms, although
it is generally believed that British firms are not so
lenient as others in their dealings with overseas
business men.
(A) Popularity of foreign goods due to quality, price,
terms of payment, etc .—As reported previously, as
regards quality British goods still hold their own
against those of any other country, in spite of the
reputation they have of being most expensive.
As regards payment British firms would hardly
agree to anything more than cash against shipping
documents, while other firms adopt an easier system
of recovery, though as said above, hardly any inci
dence of this nature was brought to notice during
the year under report.
The Hindu merchants have practically closed
down all their business activities, and are at the
present time busy in the recovery of their outstanding
credits, which does not seem to be an easy task.
Some British Subjects residing in Kerman had
asked some British Motor Cycle firms for motor
cycles on deferred terms, but the replies received
were on the whole in the negative.
(i) Opening for British goods. —This does not seem
to be very hopeful under the present circumstances.
(j) Over trading. —No over trading of any com
modity came to notice.
{k) Commercial morality. —As reported last year,
the commercial morality in this town, which was
already bad, has deteriorated still further, and the
local banks have curtailed their credit facilities
considerably.
(J) Working of law courts in commercial cases .—
Owing to the long delays in the settlement of com
mercial cases it is noticed that the parties prefer
to come to an agreeable settlement out of court;
but even if it does not prove successful, the case
drags on till arbitration comes to rescue. The cases
of the Hindu merchants who on their departure
had asked for the recoveries of the loans through
the courts are still in the same conditions, nothing
having resulted from their suits so far. One Hindu
merchant is still in Kerman merely to recover
outstandings of the last three years, and several of
his claims are still in abeyance. Others preferred
to accept nominal settelments and in some instances
to drop them altogether. It is not meant that there
had been any particular delay only in the case of
British subjects, or foreigners, but delays in the
settlement of commercial cases are alike whatever
the nationality of the parties may be, mostly because
of the complicated nature of the cases themselves.
As reported previously very few of the pending
cases were settled during the year under report,
and law courts due to their expensiveness are hardly
referred to, especially in commercial cases, except
as a last resort, the expenses on the suits more often
exceeding the original sums involved.
2. Finance.
(a) Tightness of money, to what extent due to restric
tion of credit, exchange, insecurity, extra taxation and
bad harvest, etc .—Money as usual was not too plenti
ful during the year, and the reason for the prevailing
tightness of money has been explained under “ 1.
Trade ”. Extra taxation and unsatisfactory harvests
may be added to it. There is general scarcity of
silver coins in Kerman, in fact all over Iran, but
notes appear to be plentiful.
The average selling rates between 21st March
1934 and 21st March 1935 were :—
Rials 78-90 per Sterling pound.
Rials 591 per hundred rupees Indian silver coin also widely used in the Persian Gulf. .