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July. For various reasons the Iranian Government found it was not able to
assume control of the many institutions when it came to the point and the order
is in abeyance for one year. It is probable that it will remain in abeyance until
the international situation permits more Iranian funds to be directed into the
educational channel.
Meanwhile both schools are filled to capacity.
In view of the uncertain future, work on the new girl’s school has been
suspended.
(c) Church.—There has been no interference with any of the services.
IV.—FOREIGN INTERESTS.
Representation.—There arc no other foreign representatives in this area.
Trade.—Up to the outbreak of hostilities, Germany continued to be Iran’s
principal customer.
The main items of export were wool, cotton, goat hair and dried fruits
(Germany), carpets and pistachio nuts (America).
The principal imports were machinery, hardware and general stores
(Germany), cotton piecegoods, matches, glass and porcelain ware (Japan),
loaf sugar (Holland and Belgium) granulated sugar (Java).
The carpet industry experienced a fluctuating year. Business was im
proving at the beginning of the year ; buying cased considerably when the in
ternational situation became disturbed ; but by the end of the year business
was again on the up-grade. Export figures for the year arc slightly lower than
lor 1938.
V.—LOCAL GOVERNMENT.
Governor General.—H. E. Ali Suhaili took up his appointment as the first
Ustandar of the 8th Ustan on the 28th February. His Excellency soon became
impressed with the possibilities of this Province and prepared a 3-year
development plan. Unfortunately his term of office was unexpectedly cut
short and lie left Kerman on 30th October on appointment as Iranian
Ambassador to Afghanistan.
Aqai Ardalan, the head of the municipality, officiated as Ustandar until
the end of the year.
Aqai Ismail Bahadur was removed from his appointment of Farmandar
of Bam in May. lie was succeeded in July by Aqai Zandniapur, the Farmandar
of Bandar Abbas.
The relations of this Consulate with the Ustandar and other Iranian
officials wa6 very cordial throughout the year.
Finance and Revenue.—Aqai Gann’chi, a zealous tax-gatherer, was in
charge of this departmental until recalled to Tehran in October.
Early in the year instructions were received from Tehran that an addi
tional sum of rials 1,000,000 was to be raised by increased taxation in the
Kerman district during the Iranian year 1318 (1939-1940). Various means
were adopted to achieve this. Income-tax was raised by 10 per cent. ; petty
shop-keepers were taxed according to profits as assessed by the Finance De
partment—in some cases the assessment was in excess of the total profits
(a refusal to pay incurred police custody) ; price of opium was raised by 25
dinars per misqal. An additional tax was put on tea and sugar but in this
case the extra revenue was to be devoted to railway extension.
The Department was inspected twice during the year by officials from the
Ministry of Finance.
Bank-i-Millic.—During the year the local branch received instructions not
to correspond with foreign firms except in Persian. It seems that the Ministry
of Finance has acquired some sort of control over the Bank’s affairs and a copy
of the half-yearly balance sheet is now submitted to the local Finance Depart
ment.
In November the local branch transferred silver coins to the value of rials
1,500,000 to Tehran.
Instructions have been received to open savings bank accounts but there has
been no rush to take advantage of these facilities.