I am grateful to you for your kindnesses to me this morning and for
the opportunity that it gave me to put a few of the significant
issues that we face in this area.
You know that at any time I am at yours and the Boss’s beck and call
for anything.
[Enclosure]
Memorandum by the Director of Economic
Operations in the Middle East (Landis)
Memorandum on Consumer Goods
in Iran
Of course it is impossible to obtain absolutely accurate figures
in view of the lack of statistical information in Iran, but
these figures I think represent the situation fairly accurately
on consumer goods.
As of January 1, 1943, the total quantity of all consumer goods,
not including cereals and other, bulk foodstuffs, in all Persian
warehouses at the beginning of the year was 80,000 tons. Recent
information indicates that between 15,000 to 18,000 tons are
still at Persian Gulf ports alone. In an attached memorandum, I
am breaking down the 80,000 tons of the various different
categories. I can give you an even more detailed breakdown but I
do not believe that this is necessary for your purposes.
The difficulty in Iran lies in the existence of an adequate
distribution system and not in the absence of consumer goods. If
you have time, go down to the central bazaars in Tehran and not
only look at the goods that are available there in the shops but
go in behind to the warehouses that are in the rear of these
shops and see the masses of goods that are piled up there. Of
course the prices are quite beyond reach. Some economic
theorists believe that it might be advisable to throw consumer
goods into Iran in order to break these black market prices. But
the answer to that is that we have neither the tonnage nor the
goods to create surpluses of such a size that black market
prices would be permanently broken.
I might add a little about the truck situation. I think it is
true that there are perhaps less trucks in Iran than there were
in 1938, but not very many less. We are just compiling figures
on this now. But the trucks that are in Iran are neither kept at
jobs that are essential nor are they kept in repair. Of some 400
Lend-Lease trucks in Tehran I saw 83 of them in one yard alone
that were laid up because of lack of repair facilities. Here
again the trouble is not spare parts but the want of efficient
management.
[Page 437]
Attached herewith are data for specific items of consumer
goods—the important ones being sugar, tea, drugs and cotton
piece goods.2
The following data is given for specific items:
(a) Sugar (October
30th)
| UKCC Stocks |
6500 |
tons |
| Government Stocks |
24000 |
tons |
| Total |
30500 |
|
MESC has now programmed for Iran
during 1944, 5000 tons per month.
(b) Tea (October
30th)
Government Stocks 800 tons.
An additional 2,000 tons are to be imported during November and
December, with a total 1944 program of 6,800 tons. This latter
figure represents 90% of pre-war consumption.
(c) Coffee: Stocks
unknown, but believed to be extremely small. The 1944 program is
set for a total of 300 tons.
(d) Cocoa: None
heretofore furnished by MESC.
1944 program includes 100 tons which is now available in
Palestine for shipment at any time.
(e) Whiskey and
Gin: Stocks negligible since there was no quota for
1942–43. Present recommendations are for 1944 quota of 6,600
cases subject to approval by London and Washington.
(f) Drugs and
Pharmaceuticals: Lend-Lease Representative MacDonald estimates sufficient
supply for one year, not including items now under procurement.
In addition to stocks held by the Government, 85 tons of drugs
and instruments have been held in ports for over a year.
(g) Cigarettes and
Tobacco: There are no imports of cigarettes since Iran
is self-sufficient. At present they have on hand a nine months’
stock of unmanufactured cigarette tobacco, and a seven months’
stock of unmanufactured pipe tobacco.
(h) Cotton
Piecegoods: Estimated stocks on hand September 7th:
21,263 bales exclusive of very considerable stocks held by
private merchants, and the products of Iranian Government
textile factories (which have held back from the distribution
authorities more than 4,500 bales during the past eight
months).
Estimated stocks of cotton piecegoods as at January 1st, 1943 is
5,000 tons, of which 80% is probably Government.
(i) Woolen
Piecegoods: Iran is self-sufficient generally, but a
quota of 80 tons has been assigned for 1944 in order to provide
cheap clothing for low-paid Government servants. This, however,
is subject to non-interference with minimum demands of other
territories.
(j) Toothbrushes:
Stocks believed to be extremely low.
[Page 438]
(k) Bicycles: 500
were recently imported but are believed to have been sold to
users, making a total of 22,616 in operation with no unsold
stocks.
(l) Glassware and
Crockery: Reports indicate that “two warehouses are
full” of glassware. Iran is self-sufficient in crockery and in
fact has offered to export to other countries at high
prices.
