SECRET. British Embassy, (1392/1/50). EA 1393/ BAGDAD. 12th January, 1950. Dear Secretariat, In your letter E 9555/1394/91 of the 3rd November you asked us for our comments on Harrison's report on British Shipping in the Persian Gulf. As a copy of the report had not been sent to our Consulate-General at Basra, we lent Davis our copy and the following is an amalgamation of his comments and of our own. (If it is possible for you to obtain an extra copy of the report for Basra we should be grateful). Para.3. British Shipping Services. There is little to say about possible improvements to British Shipping Services to the Basra end of the Gulf. The B. I. Services from Bombay and Karachi seem to be satisfactory as far as their Basra clients are concerned, judging by the comparatively few criticisms one hears. The services from the United Kingdom to Basra (cargo boats only, though a few of them carry up to twelve passengers) come in for somewhat more adverse comment because of the excessively long time they frequently take on the outward voyage, due to delays in unloading at the intermediate ports (Bahrein, Kuwait, Bandar Shapur and Khorramshahr are the chief offenders). Ships may do the trip from the United Kingdom to Bahrein in about three weeks and then take six or eight weeks from Bahrein to Basra. Presumably there is no answer to this so long as the quantity of cargo consigned to the "new oil ports is so big as to render the cargo for Basra unimportant by comparison. The question of pilferage is also a very serious one and any efforts that can be made to reduce it within more moderate limits would be most welcome. We understand that Co1, Johnson is fully alive to the problem and is doing what he can to control it. Messrs. Gray Mackenzie in Basra do not appear to be unduly concerned about the proposed new Bombay Steam Navigation Company service from India to Basra which is referred to in para.9(v) of the report and consider that they will be able to hold their own so long as there is no unfair discrimination. If, however, the Indian Government were to become ultra-nationalistic and insist (for instance) that Iraqi produce for India should be carried in Indian ships, it might not be so easy for them. One other foreign competitor mentioned by Harrison, the Herlofson Line, has withdrawn all its ships from the Persian Gulf. Para.5(ii). The Port of Basra. The fact that the central Iraqi Treasury is empty is irrelevant to the financial position of the Port. The Port account and the Bar Dredging account are kept quite separately and, in contrast to the central Treasury account, are in a very sound position. The surplus on the Port account for the year ending March 1949 was ID.162,203, and on the Bar Dredging account ID.375, 246; -1. /and Middle East Secretariat, Foreign Office, LONDON, S.w.1.
