Page 327 - 4 Persian Trade rep KUWAIT 2_Neat

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to mean that given added purchasing power, the The reason for the absence of banks is three­
average Kuwaiti is capable of appreciating quality fold :—
and real value as opposed to mere first cost. (a) Inadequate volume of trade,
11. The exceptions referred to in the first sentence (b) Religious prejudice of people against charg­
of tin* above paragraph are :— ing interest on capital, and
/j Japanese Bicycles and (c) Owners’ reluctance to entrust money out of
(h) Matches. their own hands.
• Japanese 22 Cycles have failed altogether in the 15. Apropos of (c) above : people of Kuwait, not
Kuwait market and this has resulted in an increased unlike those of so many other backward countries,
demand for British manufactured machines. The arc in the habit of hoarding money to a very large
V Apj*olk> ” make Cycles arc particularly popular. extent. The case may here be cited of a typical
12. Suggestions for Meeting Competition— Kuwaiti capitalist, who made a fortune in the ]>carl
(</) Direct Contact Through Travelling Agents.— trade and who is by far the richest man in Kuwait.
The value of direct and personal contact with local It is said that he still keeps all hi? cash in an under­
merchants of this place with a view to obtaining ground cellar, takes a periodical check of his money
first hand knowledge as to the peculiar needs of (.silver) by weighing it, and on finding it correct locks
Kuwait market cannot be overemphasized. An the cellar again till the next check falls due.
article which is originally manufactured for Western 10. The same attitude applies to smaller money
markets has, of course, to undergo considerable holders who appear to feel more at ease with their
alterations and modifications before it is suitable to money under lock and key or buried underground
be put on the local market, since conditions iu this than when it is invested in some way.
part of the world arc materially different from those 17. This attitude of capitalists, both large and
prevailing in the West. The despatch of commercial small, has undoubtedly an adverse effect on the
traveller* to Kuwait, as is done by the Japanese at money market. It tends to an unnecessary with­
present, should no longer be found difficult, in view drawal of money from circulation and ultimately
of the service now maintained by Imperial Airways results in contraction of currency and tightness of
down the Arab side of the Gulf. money.
[b) Appointment of Kuicaitis as Agents for Kuicait.
—At present it would appear that British manufac­ (C) Taxation.
turers invariably appoint Basra merchants as their 18. An indirect tax in the form of a dutv of 41
sole Agents for the whole of Persian Gulf. These per cent, ad valorem is levied on imports into Kuwait.
Agents charge full commission on duty, while local This hears very lightly on people and its effect on
prospective agents who could sell all classes of goods purchasing power of the consumer is insignificant.
cheaper and could popularize and push trade owing
to the low duty at Kuwait (41 per cent.) if they were Under agreement with His Majesty’s Government
given agencies, are shut out, because as sub-ageuts articles imported by British subjects pay only 4 per
any remuneration they make ia too little. cent. duty.
(c) Quotation of prices in Rupee as icdl as Ster­ (D) Military.
ling.—This would help a good deal since local
merchants have no means of keeping in touch with 19. Commandeering The questions do not arise
the fluctuating rates of exchange. The result is— of Transport. Effects 6ince Kuwait Military
not infrequently to the detriment of British manu­ of Conscription. system is that of a tribal
facture—that misleading calculations in terms of type.
Rupee of prices quoted in Sterling are frequently
made. (E) Agriculture.
20. As stated above, neither Kuwait nor its
(B) Financial. environments can boast of any agricultural resources.
13. The question will be dealt with as a whole, There are no date plantations of any value, no fields
rather than on the lines suggested in the ques­ and not many kitchen gardens. The villages to the
tionnaire, under this head. South-east of Kuwait supply a limited but increasing
14. There are no banks in Kuwait and transfers quantity of vegetables and melons. The agricul­
of money to foreign countries are either made by tural centre in the principality is J&harah (situated
means of International Money Order through the some 25 miles Bouth-west of Kuwait) which has
Post Office or through Banks in Basra. This total greatly improved during the year owing to the
absence of exchange facilities is a great drawback facilities afforded by motor transport in taking the
and a considerable handicap in the conduct of quick products into town. The village has over 2,500
business transactions. date trees, under which wheat, barley and luqrene.