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f. International Trade
In the field of foodstuffs, Iran must depend upon imports for much
of its sugar and tea, which for the past ten years have averaged 69,250
and 6,450 tons, respectively, per year. About two thirds of the cotton
piece goods required must also be imported. Transport is entirely depend-
ent upon the importation of railway and automotive equipment, rails, ac-
cessories, and spare parts. Factory construction requires imported struc-
tural iron and steel, and the machinery needed for replacement of worn-out
equipment or for new industrial enterprises comes from abroad.
From 1930 until about 1936 Iran showed a favorable balance of trade;
from 1935 to 1942 the value of imports and exports approximately balanced.
Since 1942 there has been a trade deficit; in 1944 imports amounted to $93
million and exports to $25 million (exclusive of payments derived from
petroleum). Trade deficits, however, were offset by revenues from the AIOC.
Before the recent war, barter arrangements helped to maintain a balance of
trade, and such arrangements are still in effect with the USSR. Much of
the foreign trade is conducted on a short-term basis.
The following table represents the relative share of the foreign
trade with Iran of those countries which were most active in the field:
Country
1938
1942
1944
USA
6.5
17.5
23.3
USSR
11.5
15.75
21.0
Great Britain
9.5
5.5
4.6
India
8.5
43.5
30.2
Germany
41.5
1.25
.1
India has risen to first place primarily because it was able to
supply cotton piece goods and tea during the war years. These items were
sold at very high prices, and with normal competition, India may not be
able to hold its favorable position.
Recent and current imports of sugar, cotton piece goods, and machin-
ery from the USSR have been balanced by exports to that country of rice,
wool, hides, and dried fruit. The USSR, however, has been exacting from
Iran six times the price for Soviet sugar and cotton piece goods that Iran
pays to other countries for such commodities.
Nearly all the trucks, automobiles, spare parts, and tires and
tubes bought by Iran come from the United States, and Iran also offers a
limited market for American pharmaceuticals and toilet articles, industrial
chemicals, paper and cardboard, hand and motor pumps, electric and Diesel
motors, railway equipment, electrical communication and lighting equipment,
and machine tools.
II-9
SECRET
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"ocrText": "SECRET\nf. International Trade\nIn the field of foodstuffs, Iran must depend upon imports for much\nof its sugar and tea, which for the past ten years have averaged 69,250\nand 6,450 tons, respectively, per year. About two thirds of the cotton\npiece goods required must also be imported. Transport is entirely depend-\nent upon the importation of railway and automotive equipment, rails, ac-\ncessories, and spare parts. Factory construction requires imported struc-\ntural iron and steel, and the machinery needed for replacement of worn-out\nequipment or for new industrial enterprises comes from abroad.\nFrom 1930 until about 1936 Iran showed a favorable balance of trade;\nfrom 1935 to 1942 the value of imports and exports approximately balanced.\nSince 1942 there has been a trade deficit; in 1944 imports amounted to $93\nmillion and exports to $25 million (exclusive of payments derived from\npetroleum). Trade deficits, however, were offset by revenues from the AIOC.\nBefore the recent war, barter arrangements helped to maintain a balance of\ntrade, and such arrangements are still in effect with the USSR. Much of\nthe foreign trade is conducted on a short-term basis.\nThe following table represents the relative share of the foreign\ntrade with Iran of those countries which were most active in the field:\nCountry\n1938\n1942\n1944\nUSA\n6.5\n17.5\n23.3\nUSSR\n11.5\n15.75\n21.0\nGreat Britain\n9.5\n5.5\n4.6\nIndia\n8.5\n43.5\n30.2\nGermany\n41.5\n1.25\n.1\nIndia has risen to first place primarily because it was able to\nsupply cotton piece goods and tea during the war years. These items were\nsold at very high prices, and with normal competition, India may not be\nable to hold its favorable position.\nRecent and current imports of sugar, cotton piece goods, and machin-\nery from the USSR have been balanced by exports to that country of rice,\nwool, hides, and dried fruit. The USSR, however, has been exacting from\nIran six times the price for Soviet sugar and cotton piece goods that Iran\npays to other countries for such commodities.\nNearly all the trucks, automobiles, spare parts, and tires and\ntubes bought by Iran come from the United States, and Iran also offers a\nlimited market for American pharmaceuticals and toilet articles, industrial\nchemicals, paper and cardboard, hand and motor pumps, electric and Diesel\nmotors, railway equipment, electrical communication and lighting equipment,\nand machine tools.\nII-9\nSECRET"
}