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altogether, and were, in fact, in the majority of cases, making the sale of tho. piece-
goods and other first-class commodities conditional upon the purchasers acceptance
of old stocks of turned fish, Samovars, etc., which had remained on their hands.
Russian predominance is well illustrated by the fact that, in the middle of the year
the only new stock of cotton prints and shirtings to be foimd in the bazaar were of
Soviet origin.
The fact that no Russian ship called at Bushirc between the end of May and
the end of August suggested, at first sight, that the Russians were also feeling the
efleets of the Trade Monopoly Law, until it transpired that their absence was due
to Political motives and was, in reality, connected with the closing of the northern
frontier in the middle of April : a step taken by the Russians to bring pressure to
bear on the Persians with a view to accelerating the conclusion of the new trade
agreement between the two countries. After much discussion the Russian Com­
mercial Treaty was signed on October 27th but did not come into force before the
end of the year. This Treaty seems likely to set the seal on Russian trade supre­
macy in Persia for some time to come. It concedes to Russia no less than 52%
of the total import trade of Persia including a monopoly of all sugar, matches, and
oil imports, and 55% of all cotton tissue imports.
If the events of the past year afford little ground for optimism the future holds
out a promise hardly less dreary where British and Indian commercial interests
are concerned. In the Russians they are faced with a competitor who has obvious­
ly come to stay, whose position is assured by treaty and who, being actuated by
political rather than commercial motives, cannot be opposed by the usual weapons
of commercial rivalry. But the Russians are not the only obstacle to a revival of
trade. Thanks to the Persian Government’s economic policy and heavy increase
in taxation the price of all commodities continues to rise and the purchasing power
of the population continues to decrease. To make matters worse a bad n arvest
in 1931, followed by almost total absence of rain and the prospects of no harvest
at all in 1932, confront the wretched inhabitants of the Persian littoral of the Gulf
with a serious shortage of both grain and water. Under the circumstances the
outlook for British trade in this district cannot be regarded as other than extremely
black.
Communications,—Transport facilities have remained much as during the
previous year and rates lower than ever. The firm of H. S. M. R. Kazerooni and
Sons’ transport service was increased to some 40 lorries, but cannot be said to
have fulfilled its early promise. In fact the serious difficulties in which this firm
found itself at the end of the year are largely attributed to the heavy capital out­
lay made on the purchase of lorries and plant, which has not only failed to give
any return, but on the contrary involved heavy operating losses.
In May Junkers air service to Tehran was reduced from two to one trip per
week. No arrangement had been come to by the end of the year for the concession
this Company enjoys from the Persian Government to be renewed although the
agreement is due to terminate in January 1932.
The French “ Air Orient ” and Dutch K. L. M. lines maintained bi-monthly
services through Bushire to Indo-China and Batavia respectively. The concession
for both Companies to use the Persian route, due to expire at the end of the year,
was extended to the date of expiry of Imperial Airways’ concession (i.e.} April
J932).
The Bush:re-Shiraz road remained open practically throughout the year and
proved impassable to wheeled traffic only during the major part of February when
the Mashileh was rendered boggy by rain. A certain amount of work was done
on the passes, bends being widened and the surface much improved in places.
A coastal road from Bushire to Lingah is projected and the building of a raised
causeway across the Mashileh spoken of.
Security — Cases of brigandage occurred, but they were isolated and on the
whole security may be said to have been good.
Smuggling.—With a further imposition of 60% customs surcharge in February
making a total of 80%, and the restrictions and rise in prices resulting from the
trade monopoly law, smugglers could hardly be expected to remain idle. In July
in fact, sugar brought in by smugglers in the Dashti ports was said to be causing
decline in the price of that commodity in Shiraz, but on the whole there was little