Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎38v] (76/644)

not only stimulated smuggling into the country on an unprecedented scale, but
also encouraged Persian merchants to undervalue imports and overvalue exports
with the collusion of Persian customs officials. To offset these practices 15 per
cent, was added to the official import figures, and 30 per cent, was deducted from
the official export figures for March-December 1931 (see paragraph 362 of the
1931 report). Subsequent experience, however, has shown that fully 30 per cent,
should probably be added to the official statistics of imports other than those 0*.,
the Anglo-Persian Oil Company (which are probably accurate enough) in order
to allow, in addition to smuggling, for the systematic undervaluation which the
Soviet trade organisations are known to resort to, as well as Persian merchants.
429. The following table incorporates these amendments, i.e., 30 per cent,
has been added to the 1931-32 official statistics of imports other than those of the
Anglo-Persian Oil Company, and 30 per cent, subtracted from the official statistics
of exports other than oil, while the conversions into sterling have been worked
out at the average bazaar, instead of the official, rates of exchange. It will be
found that the resulting figures are in much closer accord with those of previous
years, allowing for the fall in the world price level and the fall in Persian
purchasing power :—
(Revised table in sterling only.)
—
1309
(1930-31).
1310
(1931-32).
Increase or
Decrease.
Imports—
General
A.P.O.C
At bazaar rate 85.
±7,172,388
£3,186,255
At bazaar rate 97.
£6,739,793
£1,042,080
Per cent.
- 6*0
- 67-3
Total imports ..
£10,358,643
£7,782,165
— 24-8
Exports—
General
Oil
£5,398,176
£11,823,223
£4,725,361
£9,703,093
- 12-4
— 17-9
Total exports
£17,221,399
£14,428,454
— 162
Total trade
£27,580,042
£22,210,619
— 19-5
Excess of exports (including oil) over
imports
£6,862,756
£6,646,289
- 3-1
Excess of imports over exports, excluding
oil
£1,774,212
£3,056,804
+ 72-2
430. Various adjustments still remain to be made. In 1930-31 an apparent
adverse balance of £4-14 million was to all intents and purposes wiped out by
subtracting the imports of the Anglo-Persian Oil Company and the company’s
local expenditure (paragraph 338 of the 1931 report). In the following year,
however, a smaller apparent adverse balance, amounting to £3 million, is only
reduced by £1-4 million (see below), when these two factors are taken into
consideration, leaving Persia with an adverse balance of £1*6 million for 1931-32.
431. This computation is necessarily nothing more than approximate, but
it can be said to be unaffected by other invisible items—the expenditure incurred
by foreign missions and commercial organisations in Persia, for instance, being
probably offset by the growing obligations of the Persian Government abroad,
particularly as regards State supported students. It is also confirmed by the
Imperial Bank of Persia’s experience of the exchange market and the course of
trade generally during the year.
432. The effect on the national economy of the recent restrictions in the
operations of the Anglo-Persian Oil Company due to world conditions is well
brought out in the following table, supplied by the company’s Tehran office
confidentially. It will be seen that the actual shipments of oil from Persia show
hardly any change, but this merely emphasises the unfavourable marketing