RUSSIA BIDS FOR PERSIAN TRADE

Manawatu Times, Volume LIV, Issue 6802, 4 January 1929, Page 10

RUSSIA BIDS FOR PERSIAN TRADE

• UNDERSELLING TACTICS. Russia’s endeavours to make tho most of the opoprtunities offered by tho trade agreement with Persia concluded last year have led to an AngloRussiun economic duel. American cotton and oil interests are feeling its repereusions (states the San Francisco Chronicle). The British textile hegemony at Hamadan, one of the most important markets in Northern Persia, has been invaded for the first time by tho Russians with delivery of 1200 bales of Russian-manufactured cotton piece goods. Bagdad, which has been the rnarketiag centre for such goods, has of late been able to placo only a negligible quantity of British textiles in Persia. According to Bagdad accounts, tlio Russians aro selling at a loss of 40 to 50 per cent., yet are seeking additional orders. The truth of these reports is indirectly confirmed by statements emanating from Russian sources showing the cost of production for cotton goods to be at least double that of the British.

How long the Soviet will be content to go on losing money in this way seems to be a matter governed largely by the uncertain sway of politics. However, expressed in actual figures, Persia’s imports, although they represent six-tenths of Russia’s entire exports to Asia, amounts to so little compared lo Russia’s total production that the Soviets may feasibly think it worth while to obtain control of the market even at financial loss.

Simultaneously Russian oil is establishing a market for itself in the realm of the Shah. In the case of this commodity also there is a sharp competition. A four-gallon tin of oil which a year ago cost five dollars now costs only two dollars. To mako up for the discrepancy, the Russians are endeavouring to obtain higher prices in the North, where they have virtually a monopoly on the oil trade, the British production base being in the south. However, a new opportunity is presented to tho British. Through discovery of the extensive oilfield near Khaniquin, north-east of Bagdad, their production base is shifted northward. Onco these wells# aro. exploited, supplies will have 110 further to travel than tho Russian oil and the British will have immediate access to tho North Persian market. The United States and other conntries are keenly interested in having this Anglo-Russian trade war at an -end, for they aro in of being crowded out of tho Persian market.