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                  52. Economic affairs.—Dissatisfaction with trade restrictions, monopolies,
               exchange control and Government intervention in general caused a petition
              to bo presented to the Shah during his visit to Shiraz. After the death of
              the Minister of Finance modifications were discussed in-Tehran and the new
              Minister of Commerce has proved sympathetic to the extent of securing the
              curtailment of some of the powers of tho monopoly companies. Not only
              had production of gum, almonds, dried fruits, carpets, and skins decreased,
              as tho opportunity for individual profit was taken away, but the actual mar­
              kets havo been partly lost. Meanwhile Banks havo restricted credit consi­
              derably, particularly to the new Companies, which are badly managed.
                  53.  Merchants arc now free to export most commodities under license
              from the Monopoly Company concerned and endeavours are being made to
              j cga'n the old markets. A very large proportion of the produce of Fars goes
              to the U. S. S. R. or to Germany as part of the trading agreements with
              Iran. A quantity of cotton yam from the local mills was exported to Germany
              during the year, but this was stopped owing to Russian representations.
                  54.  Imports are in the main cotton piece-goods, sugar, tea and hardware*
              Stocks of all of these in the country aro said to be in excess of requirements
              and permits to import more havo been refused. The necessary foreign ex­
              change to pay for such imports, however, was not available. Similar consi­
              derations have prevented the purchase of more machinery for the existing
              mills or for others planned, and the arrival of motor lorries and cars and
              accessories has been delayed, thus causing great dislocation to trade, agri­
              culture and industry. Smuggled goods of all kinds are to be seen in increasing
              quantities.
                 55.  The Sherket-i-Qumash (Cotton Piece Goods Company) has imported
              a certain quantity of goods from Manchester and from Bombay. Otherwise
              the market is stocked with Russian cloth. The only other British product
              of importance is tea.
                 56.  The Trading Companies established in Shiraz at the end of the year
             were :—
                   Shcrket-i-Saharai Tijaret-i-Fars va Banader (general trade).
                   Sherket-i-Sahami Pashm, Pust va Pambeh (wool, hides, cotton).
                   Sherket-i-Sahami Pust Narm-i-Fars (skins).
                   Sherket-i-Sahami Ketira-i-Fars (gum tragacanth).
                   Sherket-i-Sahami Tijaret-i-Junub (general trade).
                   Sherket-i-Sahami Muammelat-i-Amta-i-Vatan (general and local trade
                        in Iranian manufactures).
                   Sherket-i-Tijaret-i-Fars (general trade: in liquidation).
                  Sherket-i-Sahami Dukhaniat-i-Fars (tobacco : in course of reformation).
                   Sherket-i-Sahami Tutun va Sigaret-i-Fars va Banader va Junub
                        (tobacco : in course of reformation).
                  Sherket-i-Sahami Tuntun va Sigaret-i-Fars (tobacco: in course of
                        reformation).
                  Sherket-i-Sahami Otomobil-i-Fars va Banader (motor cars and spare
                        parts).
                  .Sherket-i-Sahami Qumash-i-Fars (cotton goods).
                  Sherket-i-Sahami Qumash-i-Shiraz va Tavab (cotton goods).
                  Sherket-i-Sahami Gand va Shelter (sugar: local and imported).
                  Sherket-i-B/Usta’i (Village Co-operative Society : local trade).
                  Sherket-i-Qali (carpets).
                  Sherket-i-Kalah-i-Fars (local trade). .
                In most of these, Government has sufficient interest to give   a measure
            of control.
                57. Local industries have not been extended during the year owing to
            the lack of capital and of Government permits to obtain:machinery. The
            Fare Manufacturing Company having actually ordered British Spinning
            Machinery to double their plant had to cancel the order. The new buildings
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