Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎121v] (242/644)

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of sterling, a large part of the increase being apparently due to huge impoi s on
Government account. A certain amount of overvaluation of impoi ts an undei-
valuation of exports may account for some, but by no means all, or ic wide
margin between the two figures.
398. The increased import quotas introduced in November 1933 weie, for
the most part, retained for the economic year 1934-35, with the impoi ant
exception of cotton piece-goods, for which an import monopoly was cieated.
399. Some alleviation of the tightness of the money market was produced
by a large increase in the note circulation, and considerable quantities ot the
newly coined silver rials were also put into circulation.
(2) Municipal Activity.
400. In Tehran considerable activity prevailed, particularly after the
return of the Shah from his visit to lurkey. Streets are being widened, old
buildings torn down and new ones erected with incredible rapidity. Appreciable
progress has been made in street paving and asphalting, some of the latter being
of very poor quality. Orders are being placed for road-making machinery, and
tenders were called for for further asphalting and paying on a large scale. Shop
window displays are improving, more adequate electric lighting is to be provided
and a municipal flour mill is planned. Much of this activity is presumed to be
window-dressing for the anticipated official visit of Mustapha Kemal in 1935, but
no progress has been made towards providing such essential requirements as a
sewage system or the canalisation of the drinking water supply.
(3) Balance of Trade (1933-34).
401. According to preliminary and approximate figures published by the
Department of Commerce, and the Persian customs bulletins, the balance of
Persia’s international trade during the year ended June 1934, as compared with
the previous year, was as follows : —
(In thousand rials and sterling equivalent.)
—
1932-33.
1933-34.
Increase or
Decrease.
Imports
660,277
847,149
Ker cent.
+ 2H • 3
(£6,719,000)
(£10,471,557)
4
55*8
Exports—
General
535,591
460,000
14*1
(£5,450,198)
(£5,686,032)
4
4*3
Oil
1,133,662
1,337,615
4
18*0
(£11,536,196)
(£16,534,178)
4
43*3
'total exports ..
1,669,253
1.797,615
4
7*7
(£16,986,394)
(£22,220,210)
4
30*8
Total trade
2,329,530
2,644,764
4
13*5
(£23,705,403)
(£32,691,767)
4
37*9
Excess of gross exports (including oil
1,008,976
950,466
6*0
shipments) over imports
(£10,267,385)
(£11,748,653)
4
14*4
Trade balance, excluding oil shipments ..
- 124,686
(£1,267,792)
— 387,149
(£4,785,525)
Kates of conversion: 1932-33 rials = £1.
1933-31 80*90 rials = £1.
402. The official explanation of the large adverse balance is that it consists
entirely of goods imported on Government account (including gold bullion to a
value of 143 million rials) or by the various concessionnaires entitled to import
goods without corresponding export obligations. If these items are excluded,
it is claimed, the trading account would approximately balance at about