Reports and Correspondence Relating to Persia, Including Trade and Trade Routes in Persia [‎5v] (10/252)

REPORT ON TRADE OF PERSIA.
Suoar forms quite one-half of the total imports into Pers.a from Russia.
The peculiar regulations governing the export of this article from Russia
have affected onW our shipping interests. A decrease in the supply of sugar
to Persia from Russia would have given place to an increase from France
and Austria, not from British possessions, and the consignments from these
countries would have been largely to the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , and would have paid
freight to British ships.
Cotton tissues form one-fourth of Persian imports from Russia, and receive
drawback on export form Russia to Persia, said to be equivalent to the duties
levied on raw material imported over the Russian European frontier
present rates are given in the footnote on the previous page. If the Russian
and Persian cotton growers are able to obtain all or nearly all the benefit of the
dutv of Rbls 4'i S per poud imposed on imports of raw cotton into Russia from
other countries, by increasing their prices up to the level ol the imported com-
modity of equal quality, then the drawback on categories A. and B. affords
little or no advantage to the Russian manufacturer or exporter as compared
with his British competitor.* With regard to category C., Turkey reds, at
Rbls. S‘40, I have rot obtained in Persia information as to the nature or value
of the substances employed in this dye from which to calculate the proportion
of duty paid on them. The articles falling under this category form an
important part of the imports from Russia.
The Russian manufacturer caters for a large population in Russia with
requirements similar to those of a large section of the Persian population,
and therefore does not need to manufacture cotton prints, common glassware,
pottery paper, hardware and mercery, lamps, candlesticks, and various
articles’of clothing, expressly to suit the Persian market. This has been
suggested to me as conferring some advantage in cheapness of production.
Try turn tn trade with other European countries.
The export of silk cocoons from Ghilan and Mazanderan, now of some
importance, is chiefly to France and Italy, and has not interested British
traders.
In imports, cane sugar has not been able to compete in. the Gulf with
French loaf or Austrian bag sugar. The increased demand in the southern
provinces supplied from these countries appears to have more than compen
sated for any loss of trade in northern markets taken by Russia.
In silk tissues France and in woollen tissues Austria and France take a
larger share of the trade than we do. Their imports are nearly all via
Trebizond, purchased in Constantinople by Persian traders.
In white and grey shirtings Holland has begun to compete with us.
Lastly, I may draw attention to influences which have affected our owm
trade.
The British Empire has increased its takings from Persia of opium and
gums. The grain trade has temporarily disappeared, owing to prolonged
agricultural depression in the southern provinces and hampering restrictions
which tended to throw land out of cultivation; it has been, in a fashion,
compensated by an import of wheat, rice, and other foodstuffs, but that is a
questionable benefit to our trade as a whole, as these regions, with good
harvests, would have bought manufactured articles from us with their surplus
agricultural wealth.
It may be asked why the regions of Southern Persia accessible to our
influence should not have developed in the same measure as the northern
provinces. Luristan, Bakhtiariland, and Arabistan possess well-watered
and fertile districts, but the peoples of these regions are still but little
amenable to the authority of the central Government, and until law and
order are more firmly established but little agricultural or industrial progress
can be expected. Much of the southern and eastern regions has but scant
irrigation water and little rainfall. Fars and Kerman might have been