Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎92v] (184/644)

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541. The raising of the control of exporters’ exchange is reported undei
the heading of “Exchange,” as also the attempts of the Government to iic
themselves of foreign exchange accumulated as a result of the conti ol and since;
depreciated. Import permits in respect of cars, lorries, tyres, tubes, leathei
goods and woollens would only be granted on production of export certificates,
accompanied by bank certificates to the effect that exporters exchange, at the
previously fixed rates, had been purchased. This obligation was a serious
handicap to the motor trade, and conferences and discussions between Iff 0
Department of Commerce and motor dealers were still continuing at the end of
the year without any satisfactory result being arrived at. Some alleviation was,
however, granted in the case of automobiles, which were to be valued by the
Customs on invoice prices (c.i.f. port) converted into rials at the free rate of
exchange for assessment purposes, instead of valuation at the wholesale selling
prices. This appreciably reduced the amount of exporters’ exchange to be
purchased and also the value of the export certificate to be produced.
542. During the year there were three successive Directors of the Depart
ment of Commerce. Yassai was dismissed in May, supposedly on account of his
failure to settle the Perso-Soviet trade dispute. Mirza Homayoun Khan Sayah,
who replaced him, lost the post in the autumn when Mukhber-es-Saltaneh’s
Cabinet resigned. The present incumbent, Mirza Ali Akbar Khan Bahman, was
previously in the Ministry for Foreign Affairs and recently Minister in Brussels.
M ono'polies.
543. The activities of Dr. Friedlieb in conjunction with the Iran Trading
Corporation received a check when Teymourtache was definitely put aside.
Dr. Friedlieb informed Mr. Lingeman in March that he had abandoned all idea
of obtaining import monopolies. He was, however, actively negotiating for a
comprehensive tobacco monopoly and, in fact, some agreement appears to have
been reached in June. Dr. Friedlieb, however, failed to convince his American
supporters, in spite of a special trip to Europe in order the more easily to
communicate his views and to ensure the forthcoming of the necessary capital.
He subsequently returned, but obviously an unsuccessful negotiator deserted by
all his former associates, who either left Persia or carried on their own businesses
independently.
544. The Tobacco Monopoly in June invited proposals from other concerns.
Dutch, German and French interests continued negotiations, but nothing was
heard of any progress.
545. In September the Ministry of Finance sent a mission, under the
leadership of Mirza Seyed Ali Khan Nassre, the Director of the Monopoly, to
Europe, ostensibly to look into the tobacco question, but subsequent reports
indicate that tobacco was not the real objective of the mission.
546. In December a Boumanian, M. Victor Kendler, representing the
Societe europeenne d’Etudes et d’Entreprises of Paris, arrived at Tehran, and
appears to have started negotiations for the Tobacco Monopoly—with what degree
of success was not known at the end of the year.
547. Dr. Friedlieb remained at Tehran, possibly in the hope of obtaining
something from the successful negotiators if the scheme ever materialised.
548. During the summer the Government were known to be again
consideimg the possibilities of creating import monopolies of motor cars, lorries
and tyies. This was in connexion with the schemes for disposin 0, of exporters’
exchange without loss, and would have involved such regulation of selling prices
and dealeis piofits as would have been unacceptable to the latter. The monopoly
proposals were later abandoned, and imports of these articles were made
conditional on the purchase of exporters’ exchange at the “ official ” rates thus
imposing a very heavy burden on the motor trade
Iran Trading Corporation.
n ^ rom ^ ts instigator and president, the late Minister
of Gourt, naturally put a brake on the previously professed enthusiasm for this
syndicate but it survived the adverse criticism which was evident early in the
year, at which time its very existence appeared to be imperilled.