Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎124r] (247/644)

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piece-goods. The idea is to import cotton goods on a barter basis against exports
of Persian produce. In November a company called “ Societe par Actions des
Cotonnades ” was set up under the auspices of and in the premises of the National
Bank with a capital of 20 million rials (£250,000),' part of which has been
subscribed by the bank. Applications for permits to import cotton goods must be
submitted to the company, together with some indication of the nature and
value of Persian produce which the applicant undertakes to export. A monopoly
tax of 15 per cent, on all imports of cotton goods is levied by the Government, and
in addition a commission of 5 per cent, is charged by the company.
(b) SUk and Cocoons.
430. In September the Iran Trading Corporation were granted the
monopoly of the purchase and export of silk cocoons as well as of the importation
of silk cloth from abroad. In order to stimulate the flagging export of cocoons,
the corporation were authorised to import 2^ metres of silk cloth against every
kilogramme of cocoons exported. For the operation of this monopoly, the corpora
tion have formed a company under the name of Silk Share Company with a
capital of 3 million rials (£37,500), one-third of which is subscribed by the
corporation and the remaining two-thirds made available for the public.
(c) Tobacco Monopoly.
431. Dr. Friedlieb called on the commercial secretary in February and said
that he was once more interested in the tobacco monopoly. He was aware that
a French group had an option on the monopoly, but did not think that agreement
would be reached. In this he was correct, as the Government finally decided to
set up the monopoly without foreign capital, and Dr. Friedlieb was himself
appointed technical adviser to the Government tobacco monopoly. A call for
tenders for the construction of a cigarette and tobacco factory An East India Company trading post. at Tehran was
published in September. Two British firms have submitted tenders, but the
result of the adjudication was not known at the end of the year.
(d) Sugar.
432. At the end of October a notice issued by the Ministry of Finance
provided for the establishment of special companies in all the principal towns of
Persia for wholesale dealing in sugar. These firms would obtain their sugar from
the sugar monopoly, and no other wholesale dealers in sugar would be permitted
to function in the districts covered by the new companies. The latter had to
undertake to purchase a definite amount of sugar annually, selling prices would
be fixed, and a definite minimum amount of stocks was to be maintained. The
monopoly were to have the right to inspect the books, stocks, &c., of the companies.
I he measure is intended to reduce illicit imports of sugar as well as to minimise
price fluctuations.
(e) Motor Imports and Carpet Exports.
433. About the middle of December it was announced that a monopoly
company was to be formed for the importation of motor vehicles, together with a
company for monopoly exportation of carpets and a third company for the
operation of motor transport services. Imports of motor vehicles were to be
regulated according to exports of carpets, which had fallen off considerably
during the last few months. The National Bank was to take up 51 per cent, of
the shares of the new companies, and the motor dealers were invited to take up
the remaining 49 per cent, of the shares of the motor import company. This they
were not disposed to do. One of the objects of the proposed monopoly was to
reduce the excessive profits alleged to be made by motor dealers, to reduce prices
and to apply some of the profits of the motor trade to assist the export of carpets.
After prolonged discussions between the Government representatives and motor
dealers, it was announced at the end of the month that the monopoly scheme had
been abandoned for the time beine. and orders were sent to the customs to release
consignments which had been held up pending a decision being reached on the
monopoly question. Dealers were warned to be more careful in future about the
amount of profit they tried to make, as the Government would keep a watchful
eye on the motor trade. The fact that the motor trade in Persia is largely in the