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              I lie 111 ret Secretory of the U. S. S. U. Legation (M. Jnquc Einhorn),
          accompanied l>y the Russian Consul-General from Shiraz omt a M. Ivan Schotsf
          of the Trade Organization were in Bushire from the 1st to the Ith December.

                                 C.—Brnnsii 1 kteuehts.
             Tn 1031 the Persian authorities complained that at certain of the Imperial
         ami International Communications Company (late Indo-European Telegraph
         Department) stations British flags were being flown. After lengthy correspond­
         ence it became apparent that the Persians were averse to the flying by foreigners
         of their national flags except on limited occasions and in certain positions.
         Tiie Persian Government also insisted that Consulates should not have flags living
         from flagstaff's which were affixed to the ground but only from poles above the
         Consular buildings themselves.
             At the end of 11)31 it was thought that the matter had died a natural death,
         but in February 1932 orders were received to the effect that flagstaffs planted
         in the ground must not be used after the 22nd February. In accordance with
         instructions from II. M.’s Legation, Tehran, these orders were complied with,
         but until the clmngc-ovcr to roof poles was effected on the 24th no flag was flown.
             The main mast of the Bushire (Town) Residency flagstaff was left in situ
         to carry i lie beacon (red and white lights) which is it sod by steamers entering
         tlie inner anchorage. The topmast (75 .feet in length) was removed bodily.
         This flagstaff had’been a landmark for over 100 years.
             FlagslnfTs at the Imperial and International Communications Company
         stations at. Bushirc, Iicnjam, Jask, and Charbar, were dismantled.
             Angjo-Persian Oil Company, Limited.—Bushirc responded very half­
         heartedly to tlie orders issued by Tehran that there should be general rejoicings
         at the cancellation by the Persian Government of the D’Arcy Concession. Only
         on tlie night of the 3rd December were a few shops decorated and illuminated.
             In November tin* Anglo-Pcrsiau Oil Company, Limited, withdrew from
         Lavar (J\Jm i Mund) where they had drilled to 3,000 feet. The existence of
         oil had been discovered at an earlier stage. They moved to Qislim Island where
         exploratory drilling was to be recommenced.
             The Imperial and International Communications, Limited (the old Indo-
         European Telegraph Department) continued their excellent service of submarine
         and wireless telegraphy.
             Messrs. Zieglers continued their Branch in Bushirc, though sadly affected
         by the fall in the export and import business in Persia. Only by drastic reduc­
         tions of staff have they resisted disaster, but the future of this old established
         Manchester firm is gloomy.
             The Mesopotamia Persia Corporation, Limited (Mcspcrs) relied solely on
         their British India Steam Navigation Company Agency work as they also had
         no oilier business.
             The Imperial Bank of Persia continued to hold the confidence of the mer­
         chants am! investing public in spite of the. rivalry of the Persian Government
         National Bank (staffed by German Managers) and the Soviet Bank. The latter
         was merely a Bank in name. All its funds were kept in the strong-rooms of the
         National Bank.
             British Nan/.—The Senior Naval Officer in the Persian Gulf, Captain
         L. G. K. Crahtic, P.S.O., R.N., in IT.M.R. “ Triad ” and II.M. Sloops—
         “ Fowov ”, “ Slioroliam ”, and “Bidcford ”—visited Bushirc on various
         occasions during the year. Thanks to the sympathetic action by the Governor
         no petty obstructions were offered by the Customs and Police.
             An obstructive Quarantine Medical Officer who had occasioned the Navy
         some trouble at llcnjam was transferred in September.

                                     SECTION 3.
                                  Local Govf.unmf.nt.
             (;,tremor of Ihr Cutf Ports. Islands Pashti and Pashtisfan.—TTis Excellency
          Ana M'«r/.-i A1 i A slum r Khan Tnlhjnui continued ns Governor during the whole
         year and showed himself to he a sympathetic, friendly, and obliging official, lie
         Lc33SFl>
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