Coll 30/9 'Persian Gulf: Administration Reports 1926-1938' [‎219r] (442/1028)

9
They were however nnahle to dispose of their stocks of piece goods which
were ultimately transferred to Shiraz.
For six months before March when Vneshtorg interests w T ere taken over by
the BureamPearse their transactions had been insignificant and the rupture in
commercial relations with Persia had little effect in Bushire. Neither the
Russians nor their trading methods had ever enjoyed a great measure of popu
larity locally and the failure of yet another campaign was a matter of general
satisfaction.
The withdrawal of the Vneshtorg staff was clo'sely followed by the closure of
the Russian Bank which had only been in operation for thirteen months.
Although the embargo on business with the Russians was withdrawn in
August and one or two representatives have visited the town since, they have
done practically no business beyond forwarding consignments up country and
retailers in town are experiencing difficulty in disposing of their Russian stocks.
(c) Italian .—The extent of Italian activities in Bushire has not so far been
serious and they have been confined to satteens, woollen goods and blankets.
Most of the goods have, until now, been transhipped to British bottoms at Pori-
Said In recent months however, the Italians have declared their intention o!
instituting a two monthly service in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. and the first steamer dis
charged goods at various ports during February 1934. In view of the well
known practice of the Italian Government to subsidise its shipping this invasion
constitutes a serious menace to the British lines which now carry the bulk 01 the
Gulf trade.
While the introduction of measures for the protection of British shipping
is orimarilv a matter for agreement amongst the shipping interests themselves
if is also of national importance and it may therefore be useiul to reiterate t ic
following points which appear to affect our interests adversely :
(1) Unrestricted Imperial Cabotage.
(2) Unchallenged adverse international trade balances.
( 3 ) The sale of old British shipping in serviceable condition to under
cutting competitors.
(4) Tiie unrestricted engagement of foreign crews on ships flying the
British flag.
Financial .—The disposal abroad of Persian produce
nnd the general stagnation in trade together with heavy import duty and taxa
ton on foods comTng into the country rendered —M
throughout the year. The critical financial position of many ot mere
led to the suspension of credits by the Banks t0 „e
result of the general lack of confidence practically all transacaons m
now conducted on a cash basis.
numerous local creditors. # . .
The Imperial Bank of Persia and the ^gpe^el^ The' high
to operate under British and German m & creator facilities for con-
reputation enjoyed by the fo ™ 1 e .p yf'+o 1 have g-iven ft the advantage over its
ducting tore]gn business aie belnwed custom of German merchants,
rival, which however probably obtained the custom or
shipping hv Hansa Line steamships.
7 ± TTip nost and telegraphs, sea, anu air com-
Communications and transport P 4 f ^ w i t h the outside world but
mumcations work efficiently to keep .bm - preserve its isolation from
the poor state of the roads in the vicinity do much to pies
Weather and wear are a strong combination against poor loads and the eo.,t
of maintenance of long stretches is Prohibi we.^ ^ ^ ^ ^ ^
The road from Bushire to s J llia ^ i pair . a commendable effort to
attempts are occasionally made to keep it m repair.