Coll 28/65 ‘Persia. Perso-Soviet Commercial Relations.’ [‎192v] (385/482)

The importation of Manchester goods had practically ceased, but it could not be
said that there was no demand for them as the piece-goods imported through
India were mostly Manchester products. His Majesty’s consul gave the following
figures of imports of cotton goods into Bandar Abbas during the year 1932-33 :—
Cotton piece-goods—
U.S.S.R
Japan
India
United Kingdom ...
Rials.
3,051,238
2,464,933
2.070,304
337,670
Total
7,924.145
Textiles and yarns—
Japan
India
U.S.S.R. ...
China
United Kingdom ...
12,176,566
8,658.000
104,100
39,400
16,600
Total
20,994,666
In his commercial diary for July His Majesty’s consul at Ahwaz reported
that piece-goods were being introduced into the market by the Japanese
commercial representative at Mohammerah, and that the Russians were trying,
at present unsuccessfully, by reduction of prices, to compete with them. His
Majesty’s consul further reported that a Mr. Kaniko, representative of a
Japanese firm at Tehran, had recently visited Mohammerah in connexion with
the shipment to Japan by the Japanese vessel Seiun Maru of a consignment of
12,500 bales of Persian cotton, and that Mr. Kaniko had appointed a Persian
merchant to represent his firm at that port. Two Japanese firms had recently
established agencies at Mohammerah for the purchase of Persian cotton, and it
was understood that Japanese ships would call regularly at that port. A similar
report has also reached me in Tehran to the effect that a representative of the
Mitsubishi concern had recently gone south in connexion with arranging for a
regular service of Japanese boats to Basra. With the heavy purchases of Persian
cotton on Japanese account, and imports to Persia of Japanese textiles and
cement, there would presumably be a certain amount of freight available for these
vessels.
It would appear from the foregoing that a keen struggle is going on for the
capture of the Persian market for cotton manufactures, and that so far as can be
seen at present the Japanese are gaining ground, mainly at the expense of the
Russians, although a certain amount of British trade will inevitably be lost in
the process. Pending the conclusion of a satisfactory commercial agreement
between Persia and the Soviet Union, the full strength of Soviet competition in
this market is not yet being experienced, and it is possible that they may later
make a serious effort to regain some of the lost ground. Meanwhile, it is of
interest to note that Japanese piece-goods are reported to be less popular in the
Tehran bazaar at present, as the repeated price reductions create suspicions that
the Japanese may adopt some of the less desirable tactics of the Russian trading
establishments about which complaints were recently made, and merchants are
afraid of incurring losses and are tending to withhold orders. It is said that
during August Japanese piece-goods were offered at 10 per cent, below recent
prices, and that merchants refused to accept them.
S. S.