C. 63017/29 [No. 19].
SIR,
202
No. 173.
CROWN AGENTS FOR THE COLONIES, to COLONIAL OFFICE.
4, Millbank, Westminster, London, S.W.1, 29th January, 1929. WITH further reference to your communication of the 5th November last,* and in continuation of our letter of the 1st January, † I have the honour to inform you that at the request of the Government of the Straits Settlements, tenders were issued to Messrs. Hadji Ali Akbar and Sons Ltd., and Messrs. Bellairs, Atkinson and Co., for the supply of 150 chests of Persian opium for delivery in the Colony not later than the 31st May, 1929.
2. Messrs. Hadji Ali Akbar and Sons contracted to supply the opium for the sum of £100 sterling per chest of 140 lb. net avoirdupois, and this quotation, being the lowest, has been accepted.
C. 63017/29 [No. 29].
No. 174.
I have, &c.,
W. A. F. WICKHART
(for Crown Agents).
203
5. In the present difficult position of the Persian market for British piece-goods it will be appreciated that larger quantities of these goods cannot be forced on, to the market. It is, however, satisfactory to learn that British suppliers are not entirely
· losing their hold on and interest in the market, and will be in a position to resume their former trade should the present artificial competition against them cease.
6. Another important reason against your suggestion to demand from firms evidence of the sale of British goods in Persia is the doubt which surrounds the inten- tions of the Persian Opium Monopoly. Should the Monopoly enter the export trade, and there is reason to believe that the profits of that trade may tempt them to do so, there will probably be no scope left for merchant-exporters such as Messrs. Ziegler and Co., and Messrs. Haji Ali Akbar and Sons Ltd. It would, therefore, seem too early to say whether the opium projects will benefit, or continue to benefit British trade.
7. While the Department agrees that it is regrettable that Messrs. Ziegler and Co., have undertaken the Persian agency of a foreign manufacturer of motor cars, it should be mentioned that they also represent a number of United Kingdom exporters of various classes of goods. Their name is frequently suggested by the Department to exporters wishing to appoint representatives in Persia, and it is probable that the number of United Kingdom agencies which they hold will be gradually increased. Finally, the continued existence of British merchant houses in Persia is held to be desirable on general, as opposed to strictly commercial grounds.
I am,
&c.
(Unsigned).
683
PUBLIC RECORD OFFICE
Reference :-
TLC.O.882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
سم
DEPARTMENT OF OVERSEAS TRADE to HIS MAJESTY'S CONSUL, SHIRAZ. (Copy received in Colonial Office 21st February, 1929.)
SIR,
of
35, Old Queen Street, S.W.1, 20th February, 1929.
I AM directed by Secretary Sir Austen Chamberlain to acknowledge the receipt your despatch of the 29th November last, on the subject of the purchase of Persian opium by the Government of the Straits Settlements and its relation to the sale of British goods, particularly cotton piece-goods, in Persia, and to state that copies thereof were sent to the Foreign Office, Home Office, Colonial Office, and India Office. 2. These departments, together with the Department of Overseas Trade, have very carefully considered your suggestion that British firms which secure contracts for the supply of Persian opium to the Government of the Straits Settlements should, at the end of the period of their contracts, be asked to furnish evidence that these contracts have assisted them to increase the sale of British goods in Persia. It has, however, been decided that such action would not be justified for the present. The grounds on which this decision has been arrived at are indicated below. Briefly, it is felt that the situation of British merchants in Persia is so involved, and so delicate that any undue interference with it might well prove disastrous. It further appears that the condition you propose to impose on firms has already been fulfilled to some extent by the present holders of opium contracts.
3. As you are aware, the very existence of British merchant firms engaged in the piece-goods trade in Persia was in question at the time that the new arrange- ments were being made by the Government of the Straits Settlements for the purchase of opium, and it was on this account that the Department was most anxious to see that any advantage arising from the new arrangements should accrue to these firms. It is now learned that Messrs. Ziegler and Co., one of the principal merchant firms concerned, have succeeded in strengthening their financial position as the result of their participation in this trade by only buying opium through firms who owed them sums of money for British piece-goods already supplied. Should they succeed in obtaining a further order it is understood that they will have been enabled to clear the whole of their outstanding accounts in Persia and be left with some balance to pay. This balance they propose to pay, not in cash, but in Manchester piece-goods, if necessary even at some loss, and thus effectively compete with the piece-goods dumped in Persia by the Soviet Government.
4. Messrs. Haji Ali Akbar and Sons Ltd., the other Manchester piece-goods merchants who received a contract from the Government of the Straits Settlements, compelled their suppliers of opium to take £40,000 worth of Manchester piece-goods in part-payment of the opium purchased. It is understood that a similar arrangement would be continued in the future should further contracts be received.
* C. 53017/A/28 [No. 54]: not printed.
† No. 167.
Enclosure in No. 169.
C. 63017/29 [No. 30].
SIR,
No. 175.
CROWN AGENTS FOR THE COLONIES to COLONIAL OFFICE.
4, Millbank, Westminster, S.W.1, 25th February, 1929.
WITH further reference to your communication of 5th November last* and in continuation of our letter of 29th January,t I have the honour to inform you that at the request of the Government of the Straits Settlements, Messrs. Hadji Ali Akbar and Sons and Messrs. Bellairs, Atkinson and Co., were invited to tender for 150 chests of opium for delivery in the Colony not later than 30th June, 1929.
2. Messrs. Bellairs, Atkinson and Co., quoted £184 per chest of 140 ib. net, and this quotation has been accepted by us on instructions from the Government.
I have, &c.,
C. 63017/29 [No. 42].
No. 176.
W. A. F. WICKHART
STRAITS SETTLEMENTS.
(for Crown Agents).
THE SECRETARY OF STATE to THE GOVERNOR.
(Sent 12.30 p.m., 23rd March, 1929.) TELEGRAM.
[Answered by No. 188.]
SECRET. Your telegram 2nd January, co-operation with Netherlands East Indies authorities in purchase of opium. I am informed that Dutch authorities agree to proposed meeting, and should be glad if you will now arrange for it direct with Governor-General of Netherlands East Indies. If it appears possible that any arrange- ment for joint action will eventuate you should consider the desirability of including the Governments of Sarawak and North Borneo and the Government of Hong Kong which may possibly wish to purchase Persian opium in the future. If it desirable please consult direct with Hong Kong and Sarawak, but consultation you consider with British North Borneo Company should be through me.-AMERY. ?
* C. 53017/A/28 [No. 54]: not printed. + No. 173.
‡ No. 168.
J
204