Ext 8835/47 'Middle East: monthly economic reports' [‎9r] (17/30)

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MONTHLY ECONOMIC REPORT v .y
PEriod S6pt«WlW 1947 Q
Telegram from B.M.E.O. to Foreign Office
(N\T60. Comply. Saving)
12th November, 1947
Received 17th November, 1947
I.—Persia
The question of Russia and oil, in
Northern Persia still continues to focus all
attention. There is clear evidence that the
Tudeh (Communist) Party is reviving.
There is still no sign of the return by
Russia of the Persian gold held in the
Russian bank at Moscow. No payment has
been made for customs dues owed by that
country. It is reported that arrangements
are being made for the rehabilitation of
Persian Baluchistan in the way of public
construction, agriculture, roads, and posts
and telegraphs.
2. An irrigation company has been
formed at Jahrum with the help of the
Agricultural Bank. The Government has
some 50 tons of Persian-grown opium for
sale, and one large quantity has been dis
posed of to Spain. The governors-general
have been reminded of their duty to sup
press opium poppy growing.
3. An official arrived from India to
negotiate for the purchase of 50,000 tons
of barley, but no export licence has yet
been granted. There has been no change
in the price of food-stuffs.
4. Money has been tight and in strong
demand. Gold coins rose sharply in value
and smuggling has been reported,
especially to India. There has been some
delay in meeting foreign and local bills.
The Foreign Exchange Committee has
issued no permits since 15th July. The
free market exchange for rials fell from
225 to 213 per pound sterling on receipt of
the news of the impending return of the
Governor of the Banque Melli.
5. Regulations for foreign commercial
enterprises in Persia are still undisclosed.
There have been references to the setting
up of an open free port on the Mediter
ranean, possibly in Syria. There have also
been reports about the joining of the Per
sian railway system to that of Iraq and
Syria. This is probably wishful thinking.
The press announces the formation of an
association for economic reform which will
deal with imports, exports and the general
encouragement of Persian industry. The
association is said to be composed of Mem
bers of Parliament, merchants, university
experts and other experts. The textile
market has been dull owing to the diffi
culties of replacements. To protect the
local matchmaking industry the entry of
foreign matches has been banned, but
there has been a considerable amount of
smuggling of the latter.
6. Markets continue dull and prices
high. The Exchange Control Commission
still refuses to sell foreign exchange, with
the result that orders placed in the United
Kingdom are being cancelled. It is prob
able that up to 1 million pounds' worth of
United Kingdom trade will be lost. All
hopes of improvement centre in the return
of the Governor of the Banque Melli.
7. Quarantine revision is being under
taken since the commencement of the
cholera outbreak in Egypt.
8. Transport rates are generally high,
partly owing to the fact that vehicles are
worn out and costly to run. Small taxicabs
are increasing in Tehran and many of the
old droshkys are disappearing.
9. Bank-note circulation on 23rd August,
1947 = 6,566,568,310 rials. (Note index is
754, compared with 100 in July 1939.)
Cost of living (Tehran only), 22nd
August = 451 (447 on 22nd July, 194/).
(The figure given in paragraph 8 of the
August report was not that of the cor
rected average April-August 1939 = 100,
and should have read 450.)
Wholesale price index (Tehran only),
22nd August = 536 (538 on 22nd July).
(The figure given in paragraph 8 of the
August report was not that of the cor
rected average April—August 1939 = 100,
and should have read 537.)
Bank deposits 23rd August—
Government
Others
Bank advances 23rd August—
Government
Others
Price of fine gold per misghal—
September ...
Gold sovereigns—
George V
Million
rials
1,867
8,502
3,970
1.981
442-445 rials
(382-390 rials
in August)
950 rials
(870 at 31st
August)
13124-455 34420-23
B