Ext 8835/47 'Middle East: monthly economic reports' [‎2v] (4/30)

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There is little change in commodity prices
of food-stuffs.
7. The demand for ready money has
remained pressing and unceasing through
out October, and has been consequently
difficult to obtain. 1 At the close of October
the price of fine gold was slightly higher
than that quoted on 30th September—rials
440-445 per misghal as compared with
rials 445-450 on 30th October. The rise
was caused by persistent smuggling to
India during the first three weeks of
October; all kinds of gold was smuggled,
even broken golden jewellery. In the last
week of October, however, a tightening up
on the frontiers owing to the cholera scare
made smuggling more difficult, and hardly
worth while. The National Bank of Iran,
on 11th October, suspended sales of gold
pahlevis, and did not sell for the rest of
the month. George V sovereigns fell in the
local market to the price of rials 930 each,
which is a comparatively low figure when
one remembers the heights touched during
the smuggling period early in the month.
Bills, drawn locally, have not been paid as
promptly as usual, but foreign bills drawn
in cover of shipment of goods from abroad
have been met fairly quickly, as importers
are now fearful of leaving goods in the cus
toms for any undue length of time. No im
portant changes have taken place during
the month in regard to exchange control.
8. Engineers have been sent to the city of
Tabriz to prepare the foundations for the
new sugar refinery which is being erected
there by the Central Government.
Textile markets have coptinued dull
throughout October. The prices, unlike the
situation in September, have not been main
tained and there has been a small but never
theless very real reduction all round.
Business was very poor with markets
apparently well stocked.
The bazaars are surprisingly well stocked
with practically all commodities, including
textiles. There is no doubt that hoarded
stocks are being brought to light, and trade
generally has been very quiet, even at this
usually brisk season of the year. Prices are
easier on a general basis and with some ex
ceptions. Naturally the Government’s
refusal to open credits for the period of
almost four months has had its effect upon
trade generally, and the last recent
announcement of an increase in the budget
for the sale of foreign exchange, to cover
imports from abroad has not really helped
in any great measure.
Exports have continued fairly steadily in
most commodities, except carpets. There
has been a falling-off, probably due to the
excessive prices demanded by Persian ex
porters. Part of the Government-owned
stock of 50 tons of opium having been sold
to Spain, the Persians seem to imagine that
they will have no difficulty in realising high
prices for the balance.
The Russians have been small sellers
throughout the whole of the mont^of
October, but they have bought heavily of
every kind of food commodity.
9. The Minister of Roads and Communi
cations announces that funds have been
made available for the repair of the aero
dromes at Abadan and Ahwaz, for the con
struction of a bridge at Bander Shahpour
port, for the asphaltage of the road between
Khorramahahr and Ahwaz, and for exten
sive repairs to the road from Ahwaz to
Dizful and Shushtar.
10. The Postmaster-General announces
that there will shortly be a direct air postal
service between Turkey and Persia—the
route being Tehran direct to Angora.
11. Early in the month of October the
Ministry of National Economy found it
necessary to increase the permitted expen
diture on imports by 1,000 million rials,
owing to marked shortages and increased
market prices of certain commodities.
12. The Persian radio announced that
measures to encourage home production of
tea were to be taken in order to eliminate
as soon as possible the need for importing
it. By a ministerial decree, published on
12th October, it was demanded of importers
of foreign tea that they should purchase
50 per cent, of the quantity imported from*
abroad from locally grown stocks of tea, so
that the importer of one ton of foreign tea
is compelled to purchase half a ton of local
tea as well.
13. The Ministry of Roads and Com
munications officially announced commence
ment of work on the following important
Government enterprises :—
(i) The road from Bander Abbas to
Bander Lingeh—700 kilom. in
length;
(ii) The construction of a road from
Kerman to Djirif;
(iii) The construction of a road in
Persian Baluchistan between Zahi-
dan and Iranshahr; and
(iv) The complete reparation of the
route which is 259 kilom. in length,
between Ear in Ears, and the port
of Bander Abbas.
14. Bank deposits, 23rd September—
Government: 1,950 million rials.
Others : 8,425 million rials.