Page 507 - 6 Persian Trade rep BUSHIRE 2_Neat

report on the economic

AND COMMERCIAL CONDITIONS IN THE
PERSIAN GULF
December, 1936

_SURVEY OF TRADE AND TRADING CONDITIONS.
Conditions of trade during 1936 varied greatly on both sides of
c Gulf. Whereas on the Iranian side the situation was one of
•tcrioration the Arab side has been showing distinct
' s Qf returning prosperity—as is reflected in the trade returns,
ae brightest spot seems to be Bahrain where the increasing
oduction of the Bahrain Petroleum Company has resulted in
greater influx of foreign money and more employment for the
cal population. Kuwait is another centre which seems to be
making from the long continued trade depression. Both imports
id exports are on the up grade and there is a good chance of
is trend becoming permanent. A great fillip in this direction
ill be given if the oil boring operations now in progress prove
ccessful.
On the Iranian side however there is a different tale to tell,
ere the contrast is great. Whereas trade on the Arab side is
irestricted and customs duties are low on the Northern side
ide is subject to exchange control, import permits, high import,
ities, quotas, prohibitions and the monopolisation by the
jvernment of an ever increasing range of goods freely imported
previous years. To these must be added motor cars.
Tics and their spare parts, the import of which has now been
dared a Government monopoly. Freedom of trade has given
iv to a considerable extent to barter arrangements. The Soviet
lion concluded a treaty with Iran in 1935 under which the
nnor sent sugar, matches, piece goods, etc., in exchange
wool, skins, etc. Likewise Germany has made a clearing
rangement with Iran under which the need for foreign ex-
ange is eliminated. This has given Germany a privileged
sition as compared with most other countries.
Japan continues to dominate the market on both sides of
i Gulf in piece goods and has made considerable inroads into
• trade of other countries in such lines as cement, crockery,
ssware, tea, gramophones, bicyles, etc. This is solely
question of price and quality does not enter into it. This
Jig so it is extremely unlikely that any other country can eject
Dan from this predominant position so long as buyers con-
er price and ignore quality.
.mports from the United Kingdom have generally speaking
m maintained at their diminished total during 1936 as corn­
ed with the previous year. There is, however, little chance
present conditions for any considerable improvement in
fled Kingdom exports to the Gulf so long as price remains
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