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                                       B.—BRITISH INTERESTS.
                      Cable and Wireless Limited.—Mr. J. Tobin remained in charge throughout
                  the year.
                      Gray, Mackenzie cC Co., Ltd.—This Company’s Branch at Bushirc was managed
                  by Mr. D. T. M. Munn from 1st January to 27th Marcli 1940, and by
                  Mr. W. Sunter from 28th March to the end of the year.
                      The Imperial Lank of Iran.—The Bushirc Branch of the Bank was managed
                  by Mr. T. M. Tagg throughout the year.
                      The Anglo-Iranian Oil Co. Ltd—Ur. Vaziri remained in charge throughout
                  the year.
                      Visits of Ilis Majesty's Ships.—None of His Majesty’s Ships visited Bushirc
                  during 1940.

                                             SECTION $.

                                      LOCAL ADMINISTRATION.
                     Governor.—Aqai Hasan Farzaneh from 1st January to the end of May.
                     Aqai Mahmud Al-i-Aqa from 1st June to the 10th September 1940.
                     Aqai Hasan Farzaneh frqm 11th September tq the 24th September 1040.
                     Aqai Mahmud Al-i-Aqa from 25th September to the 2Gth November 1940.
                     Aqai Mir Ali Zehir from 27th November to the end of the year.
                     Revenue Department.—At the beginning of the Iranian year, March 1940, this
                  Department was divided into two separate branches : (1) the Revenue Department,
                  and (2) the Economics Department.
                     The collection of land revenue, income-tax and indirect taxes remained the
                  responsibility of the Revenue Department. As in previous years taxes  were
                 assessed arbitrarily and had no relation to actual profits. Discontent would have
                 been greater had it not been possible to obtain relief by bribery.

                     Economics Department.—This Department had control of the Piece-Goods      I
                 Monopoly, the Opium Monopoly, the Tobacco Monopoly and the Wheat Mono-
                 poly.
                     An adequate supply of wheat was provided for Local consumption and regular
                 monthly supplies were sent to Lingali, Bandar Abbas, Jask and Charbar. Wheat
                 was bought at Rials 400 per ton and was sold at Rials 500 a ton. Tobacco was
                 bought at Rials 2 to 4 a maund of about 7 J- lbs. and having been classified into two
                 grades was sold at Cents 80 and 70 respectively per 100 grammes. The cost of
                 piece-goods was raised by about 25% and 15% for British and Japanese piece-
                 goods respectively.

                     The Sugar and Tea Monopoly, which is under separate control raised their
                 prices for soft sugar by 123%, for loaf by 133% and for tea by 10%.
                     Smuggling of contraband goods.—During the year considerable quantities of
                 wheat, tobacco and carpets and a good number of sheep and cattle were illicitly
                 exported. Piece-goods, sugar, crockery and hardware being smuggled into the
                 country and sent inland for disposal. In a few instances when bribery failed
                 fighting took place between the smugglers and road guards at least 10 of whom
                 were reported to have been lulled.
                     10 tons of tobacco, 16 tons of wheat and 62 bales of piece-goods as well as small
                 quantities of tea and sugar were seized by the authorities. The Iranian gunboat
                 “ Shahrokh ” also captured a dhow carrying contraband cargo in territorial waters
                 and towed it to Kkorrainshakr.                                               !
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