Page 83 - Gulf Precis (VII)_Neat

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105. Tlio views of (lie Home Treasury were oxpressod in a letter, dated
15th October 1890, from Mr. Wolby to the Foreign Office.:—
u My Lords have learned from tho PoRlmaetcr-Gcnoral that tlio Imperial Post Offico is in
_ >.. ., . noway interested in tho navigation in question,
Secret K.( M.fch 1891, No§. 35-fi6 (No. 4G)- „nr) that therefore there is no ground on which
Parliament could bo asked to grant a postal subsidy to tho Company.
The Secretary of Slate is, moreover, aware that a subsidy to enable a Company to oarry
on a particular branch of trade, which cannot support itself would ho contrary to the com­
mercial policy which has for many years guided this country.
There appear, however, to be special circumstances in the present case which remove it, in a
great degree, from the sphere oj commercial economy to that of polities. The Tigris and
Euphrates Steam Navigation Company have to contend with political obstacles, with the obstruct
tion of Government officials, not with the competition of rivals or the indisposition of customers,
and it they are driven from the river the loss will not be theirs only, but the new field which
has just been opened to British trade in Southern Persia, with so much labour, may be again
entirely closed. The purpose of a subsidy in such a ease is not to encourage a monopoly or
foster a failing industry, but to prevent the frustration by competing powers of the efforts that
have been made by Her Majesty's Government on behalf of British traders generally.
196. As tho Company was about to send at this time a new steamer
speoially adapted for tho river service, and
Rid'&oi. 48-53.
it was proposed to attach conditions to
the subsidy, Her Majesty’s Government decided that tho company should bo
paid for the first two years up to a maximum of £ 3,000 per annum, to be reduced
to £ 2,000 per annum for the remaining throe years. The Secretary of State
for India agreed to pay a moiety of this amount in from the Indian revenues.
197. In lS9i tho Lynch Company asked for a renewal of tho subsidy for
another five years. The accounts for the
External A., April 1895, Not. 1-10.
year 1893 showed an adverse balance of
nearly £ 4,000, against which tho company received only £ 2,000 from Govern­
ment. Tho accounts for 1S94 were expected to be better, but there would be
still a heavy deficit. The causes of this unsatisfactory state of things were
shown to he more political than otherwise. The following extract from the
Company’s letter, dated 26th October, throws some light on the matter :—
“The enterprise has certainly cost us much more than we had originally anticipated. This
result has been caused by the great difficulty we experienced in persuading the Persian Govern­
ment to take certain subsidiary measures essential to tlio introduction of commerce, and by
the immense delays which were interposed between tho formal adoption of these measures at
Teheran and their execution iq pructico on the Karun. Tbc minds of Persian Ministers wero
filled by immense schemes for banks and roads and large monopolies, and it was almost
impossible to induce them to consider the laborious details of ordinary commercial enterprise.
It was nearly a year beforo the steamer, which in concert with Her Majesty’s Government
we sent out for presentation to the Shah, in order that she should establish the communica­
tion with Shuster, was taken over by the Persian Government and allowed to cross the rapids
at Ahwaz. The settlement of the customs, a most important measure, was embodied m a
written agreement with the Persian Government in February 1889, and was not pufc into
practice until the latter part of 1891. It is only during the past summer that it has been
possible to conclude an arrangement under which a house is being built for our Agent at
Ahwaz. During all this time the enterprise has been oonducted in the face of all obstacles,
and bus slowly but surely made its way. Thus while in 1890 we carried 1,827 tons of cargo
and 1,872 passengers, and earned 1,01*/,, in 1 »93 the figures were 1,851 tons of cargo, 2,614
passengers, with earnings of 1,517/. and in the first half of the present year, 1,142 tons of cargo
und 2,096 passengers with caruings of 99U/.”
198. The Company, however, expected an improvement in the trade shortly.
On the track from Shuster to Ispahan their own caravan worked at their own
expense, had made during the past two years a number of complete journeys
in perfect safety. Exports from the side of Sultauabad especially in carpets
were increasing.
199. In 1894 the contract for carriage of mails between Baghdad and
Basrah worked by the LvnoU Brothers also terminated. The contract was
renewed, hut the subsidy was reduced from Rs. 36,000 to Rs 24,000, an
arrangement, which the Company apparently accepted without a protest. This
reduction, however, was adduced by them as another ground, why the Karun
subsidy should be continued.