Coll 28/65 ‘Persia. Perso-Soviet Commercial Relations.’ [‎165r] (330/482)

THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY’S GOVERNMENT
PERSIA.
CONFIDENTIAL.
- [E 7472/21/34] No. 1.
&U- //. CUve to Sir John Simon.—(Received December 5.)
(No. 537.)
Sir, TeJeran, November 17, 1933.
WITH reference to my despatch No. 493 of the 21st October, I have the
honour to report that no real resumption of trade with the Soviet Union has
as yet resulted from the visit of M. Karakhan.
2. A few exports of cotton and wool from Khorassan, some in fulfilment
of previous contracts, have been reported in the Commercial Diaries of the
acting consul-general at Meshed. A few fresh orders for piece-goods have been
placed by Tabriz merchants, and a report from Resht dated 8 th November
states that the local branch of Messrs. Vahabzadeh Brothers has received
orders from Tehran to deliver 95,000 pouds of Champa rice to the Soviet
Union, for which it is said payment will be effected at Pahlavi by the Russian
Bank.
3. News of the latter transaction, or rather of the possibility of the Soviet
organisations purchasing all, or nearly all, of the available rice at a price of
9 rials per poud (the Persians hoped for more) had already reached me. Tlie
Director of the Department of Commerce told me recently that the negotiations
were definitely making progress, but “comme-ci, comme- 9 a,’' and he did not
give me the impression of being very pleased with prospective results.
4. There are rumours, which I believe to be well founded, that negotiations
are afoot for the Soviet organisations to take up the rice against exports of
timber to be imported for the Persian railway construction. A certain amount
of Persian timber will, however, be used for the northern section, as I understand
that M. Xanthopoulo, a Greek timber merchant, has obtained contracts for the
supply.
5. The fact that Soviet kerosene has recently been landed at Pahlavi and
Bander Shah was published in the local press, this being the first shipment of
Soviet oil products for several months.
6 . The sugar situation is not clear yet. According to recent information,
no Soviet sugar has been imported through Meshed, Pahlavi, Ahwaz or Bushire
since the spring. Imports through Tabriz between 22 nd March and 22nd
September were only of a value of 61,420 rials. Though on paper the total
import quota for the commodity is reserved for the Soviet Union, it will be
remembered that tenders for 12,000 tons of sugar were called for in September
(see Overseas Trade despatches No. (B) 181 of 19th September and (B)203 of
20th October last), all of which was supplied by Belgium and Holland. Five
hundred more tons were required for the south in the middle of October, and
according to the Setareh Jehnn of the 13th November, the Government intends
to import 4,000 more tons, 2,000 through Caspian ports and 2,000 through the
Gulf ports.
7 . I transmit herewith a copy of an extract from the Setareh Jehan ( l ) of
the 7 th November from which it would appear that local merchants will be
allowed to import sugar on condition that they will have previously purchased
a similar quantity from the Government stocks. This does not give the
impression that the Soviets are expected to fulfil their engagement to import
the whole sugar quota for the current economic year. The recent appreciable
additions to the import quota list, reported in a separate despatch, which in
many cases apply to quotas in which the Soviets are principally interested, may
also be significant in this connexion and may imply that Persia wishes to
make sure of the estimated necessary imports from elsewhere if the Soviet
Union fails to supply them. There are, indeed, opinions in the bazaar that the
[990 e—3]
(') Not printed.