مجموعة ٦ / ٨ (١) "سلسلة مطبوعة: ١٩٢٩ إلى ١٩٣٨". [و‎‎٣‎٢] (١٠٦٢/٦٨)

25
an extension of the area of the Saudi-Arabian Mining Syndicate’s +
concession. It may be presumed that the new area is that for whlh Tni t
Etherton and Colonel Micklem unsuccessfully sought a mining concession
month (see my despatch No. 315 of the 7th December), an arfa in which
le the legendary Najadeh gold mine, of which mention has been made in nre^
vious reports and the promising Jebel Hilit district, which hesTst ouSe
the limits of the present concessionary area of the syndicate Mv
informant said that, as part of the price of a new concession, Mr. Twitched
was prepared to offer to build a first-class motor road from Riyadh To the
Hejaz for which undertaking the syndicate already have the necessary road-
makmg machinery m the country. ^
3. It is now possible to confirm that the Saudi Arabian Mining Syndicate
made a loan, of an unknown amount, to the Saudi Arab Government during
the summer of 1936, as reported in Jedda despatch No. 268 of the 12th Sep-
a A member of the syndicate’s staff recently stated that the Saudi
Arab Government were finding it difficult to fulfil the condition to liquidate
this loan m monthly payments.
4. Copies of this despatch are being sent to the Department of Overseas
Trade and Transjordan.
( 18 )
{Received on 6 th March 1937 with Political Secretary's letter No. 7, dated 18th
February 1937.)
Enclosure in Foreign Office covering letter dated 16th February 1937.
Letter from Foreign Office, London, to Under Secretary of State,
Colonial Office, No. E. 7835/2617/91, dated 15th February 1937.
With reference to Conclusion (e) of the 48th meeting of the Middle East
(Official) Sub-Committee of the Committee of Imperial Defence, held on the
14th December 1936, by which the Colonial Office and the Foreign Office
are invited to pursue the question of British Consular representation in the
Yemen, I am directed by Viscount Halifax to state that, as the result of a
eareful examination of this proposal in the Foreign Office, a number of serious
objections have become apparent.
2. In the first place, were the King of the Yemen to admit British Consular
representation he would not be able to refuse the same treatment to the Italian
Government. It seems more than probable that the result would be a race
in which each Government would strive to outstrip the other in the size and
influence of its Consular establishments, and that His Majesty’s Government
would either have to meet the expense involved in maintaining a more im
posing establishment than the Italian Government or stand by and see the
Italian Government acquire precisely that position which it is desired to pre
vent them from acquiring.
3. But in any case the recent refusal of the Imam as reported by His
Majesty’s Ambassador at Bagdad in his despatch No. 616 of the 31st December
last (a copy of which was sent to you in the Foreign Office letter E-362/34/93
of the 4th February), to consent to the establishment of an Iraqi Diplomatic
Mission either at Hodeida or Sanaa suggests that it is most unlikely that
he would agree to the establishment in his country of British Consular offices.
Even if he were to give his consent, it would probably be long before a Consul,
on whose doings a fierce light would from the start be directed, could live
down the suspicion with which he would be regarded and evolve an alternative
system of intelligence and reporting of equal efficiency to that by means
of which the Residency at Aden at present obtains information regarding
events in the Yemen.
4 In the second place the establishment of Consular representation in
the Yemen presents difficulties from an administrative point of view, since
the climate and living conditions are such that special conditions of service
5&(G) ExAffairsDept,