Coll 28/65 ‘Persia. Perso-Soviet Commercial Relations.’ [‎225v] (451/482)

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5. The news that the Iran Trading Corporation have been promised the
monopoly of the import of sugar from May next was recently given to a Bagdad
commission agent by the manager of the corporation. If true it signifies not
only that the Persian Government will not renew its present sugar agreement
with the Soviet Government, but that the corporation will be at liberty to import
from the most economical source.
6. The next most important article of import from Soviet Russia, as laid
down in the commercial treaty, is cotton piece-goods (24 million rials) per annum,
or, say, €240,000, and here I have the Imperial Bank of Persia to thank for the
information that the corporation have telegraphed to the Japanese firm of
Mitsubishi offering to buy 4 million dollars' worth of Japanese piece-goods from
them in exchange for 3 million dollars’ worth of raw cotton (of which there have
been satisfactory trial shipments to Japan of late). 500,000 dollars' worth of
opium and the remaining 500,000 dollars in any other Persian products the
Japanese firm might care to take. One imagines that this deal is intended to
cover at least two years, in view of the fact that the total annual quota for cotton
piece-goods at present is only £450.000.
7. The commercial secretary has furnished the Department of Overseas
Trade with various trade reports on the subject of the increasing sale in this
country of Japanese cotton piece-goods, prints in particular.
8. The purchase of sugar and cotton goods and the disposal of Persian
cotton outside Soviet Russia being thus provided for, at any rate in theory, there
remained the important question of rice, in respect of which Dr. Friedlieb has
has made a sensational offer. On this point the commercial secretary is reporting
in a separate despatch.
9. I am sending copies of this despatch to the Foreign Secretary to the
Government of India and to His Majesty’s Ambassador at Bagdad (No. ifi).
I have, &c.
R. H. HOARE.
/ry