ملف XXXII/١٢ "١. الشؤون المالية. ٢. الرسوم الجمركية (صور). ٣. الأزمة المالية، ١٩٣١. ٤. المعاهدات مع فرنسا وأمريكا" [و‎‎٧‎٣] (٢٦٦/١٥٠)

period of several vears from a condition of increasing financial stringent
and a critical situation has now arisen which calls for an immediate
remedy. After much careful consideration of the problem, the feultan
and his advisers have reached the conclusion that an improvement in the
financial position of the State can only be effected by an increase m the
rate of the tariff on imported goods, and that it is important, m the
interests of the prosperity and good government of the State, that the
proposed increase should take effect with the least possible delay.
2. The right of the Sultan of Muscat to raise the tariff of the State
beyond a rate of five per cent, is, however, limited by Article •> of the
Treaty between Muscat and the United States of America of 1833. and
by Article 10 of the Treatv between Muscat and France of 1844. Copies
of the texts of these articles are enclosed herein. Unless therefore the
United States and French Governments will consent to waive their rights
to a maximum tariff of five per cent, under these treaties, no general
increase in the tariff will be practicable, and it will be impossible to adopt
the suggested remedy.
3. In these circumstances the Sultan desires that the Governments
of the United States of America and France should be approached with
a view to securing from them at the earliest possible moment such a waiver
of their rights under the articles of the two treaties referred to above as
will allow of a general increase in the Muscat tariff above the present
flat rate of five per cent. Since there has been no French Consular re
presentative at Muscat for some years past, and United States interests
there are in charge of the Government of India’s Political Agent, His
Highness has requested that His Majesty’s Government should take up the
matter with the two Governments concerned on his behalf.
4. I transmit to you, herewith, a memorandum setting forth in
greater detail the reasons which have impelled the Sultan to make this
request, and arguments in its support, and I shall be glad if you will
address a note to the Government to which you are accredited based on the
material contained in this memorandum, and will urge them to give the
matter their early and favourable consideration. United States trade
with Muscat appears now to be of very slight importance, and you may
find it desirable to make use of this point. But His Majesty’s Govern
ment would be very reluctant to make any statement the effect of which
might be to encourage United States interest in this State, and you may
therefore, on consideration, think it preferable not to draw attention to
the unimportant character of their interests at the present time, unless
the course of discussion should render this inevitable. Should the United
States Government be prepared in principle to consent to this modifica
tion of their treaty rights, the question of the best method of giving legal
effect to the modification of the relevant treaty position can be subsequent
ly considered.
5. Instructions in a similar sense are being sent to His Majesty’s
Ambassador in Paris.
CONFIDENTIAL.
( 18 )
Endorsed by Foreign and Political Department, No. F.-225-N. 29, dated
16th April 1930.
A copy of the undermentioned papers is forwarded to the Hon’ble
the Political Resident in the Persian Gulf with reference to correspond
ence ending with his letter No. 115-S., dated the 19th March 1930 [Serial
No. (15)].
Letter from the Foreign Office, to the British Ambassador,
France, No. 570, dated the 18th March 1930 [Serial No. (16)].