Coll 28/38 ‘Persia. Trade. Trade Tables 1929/30 to’ [‎209r] (417/483)

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THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY’S GOVERNMENT
(Sv-vUa-**
PERSIA.
CONFIDENTIAL.
anuary 2. 1934,
Section
(K^tt Mt
E 34/34/34]
No. 1.
Sir R. Hoare to Sir John Simon. — {Received January 2. 1934.)
571.)
(No.
Sir. Tehran. December 11, 1933.
I HAVE the honour to transmit, herewith, a memorandum by the commercial
secretary on the foreign trade of Persia for the economic year 1932-33, prepared
from the monthly customs returns.
2. The latter half of the year was ve^ much affected by the Soviet-Persian
trading dispute, to the influence of which the figures of trade between the two
countries bear eloquent testimony. In view of the very important share which
the Soviet Union normally holds in Persia’s foreign trade, it is somewhat
surprising to observe that imports into Persia during the last year were little
more than 1 per cent, less than in the previous year, but exports other than
mineral oil products declined by 24 per cent. As the dispute still continues, its
depressing effects will undoubtedly be shown in the eventual returns for the
current economic year, notwithstanding the serious efforts now being made by
Persia to find alternative markets for heT’^-p^oduce. In respect of one of her
important export commodities, Persia has uplo the present been very fortunate,
as Japan has purchased considerable quantities of Persian raw cotton in partial
replacement of Indian cotton, which she is at present boycotting. Recent reports
also suggest that the Soviet Union is now purchasing large quantities of Persian
rice, and it is considered in some quarters that this action is probably the
harbinger of an impending settlement between the two countries.
3. As has frequently been reported from this Legation, the narrow
interpretation of trade policy under the foreign trade monopoly by the Persian
Government had led to practical stagnation of the trade of the country, but the
recent decision to increase the import quotas by a very considerable amount and
to allow the importation of goods previously prohibited (see my despatches
Nos. 559 and 567 of the 2nd December and the 8th December respectively) point
to the adoption of a more liberal policy, and already much improvement is evident.
4. Apart from the falling-off in Soviet-Persian trade recorded in the
enclosed memorandum, probably the most interesting feature is the considerable
increase in the importation of Japanese cotton yarn and cotton piece-goods, an
increase which has been effected largely at the expense of imports from India
and, to a smaller extent, of those from the United Kingdom. This considerable
increase was achieved in a year when total imports of cotton piece-goods into
Persia had fallen from 231 million rials last year to 164 million rials. The
returns do not show any other appreciable imports from Japan, but since the end
of the economic year considerable imports of cement from that country have been
effected at prices which are said to defy competition.
5. I am sending copies of this despatch to the Department of Overseas
Trade (No. O.T. (B) 224), to the Foreign Secretary to the Government of India,
to His Majesty’s Ambassador at Bagdad (No. 103), and to the Hon. the Political
Resident in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (No. 239).
I have, &c.
R. H. HOARE.
Enclosure in No. 1.
Memorandum respecting the Foreign Trade of Persia in 1932-33.
THE following notes on Persia’s foreign trade in the economic year 1932-33
(June to June) have been compiled on the basis of the preliminary statistics
[15 b—4j