Coll 28/65 ‘Persia. Perso-Soviet Commercial Relations.’ [‎121r] (242/482)

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The only solution was to have one buyer and for that reason
the Iran Oovemment had established a monopoly in textiles.
In fact all the chief commodities imported and exported would be
dealt with in the same way. Sales anu purchasee would be in
the hands of the Government. With that achieved, they could now
face the monopoly on even terms.
Dealing with he question of Iran 1 * great interest in trade
with the Soviet Union* M. Said said that the chief goods Iran
had to sell - products for which a market might be found in
other countries - were cotton, wool and hides. J?or these there
was and would be an almost unlimited market in the U.S.S.K. But
the latter would only take^ them if Iran purchased an equivalent
amount in return. Iran would probably continue therefore to
purchase the bulk of its requirements of textiles, stgar, etc.
from the Soviet Union. Provision had also been made for the
purchase of machinery and equipment. In this connexion I
enquired if the report in the "Moscow Daily News" of the 3rd
# ^ September (copy attached) was correct. M. Said confirmed the
list of goods mentioned and added motor trucks, cement and
equipment for Iran porta on the Caspian Sea.
As before the basis of the new Agreement was a net balance
of trade. Now that the Iran Government had created a monopoly
in all the important commodities, the trade exchange would be
simplified. The balance would be checked up twice a year.
Turhing to the question of transit traffic, M. Said said
that one of the chief drawbacks in the past had been the high
freight charges for transport across Transcaucasia. He had
succeeded, however, in having tne tariff on exports from Iran
reduced by 50% a year ago. Another source of trouble had been
the length of time taken in transporting goods to Batum. In
many cases the delays had been excessive. This point M. Said
thought must have been provided for in the new Agreement. I
suggested that the recent electrification of part of the railway
over some of the high points would accelerate traffic. The
/Soviet