مجموعة ٣٠/ ٢٢٤ "ترتيبات العملة في المشيخات العربية في الخليج الفارسي." [و‎‎٣‎١] (١٥٧/٦٩)

/(IV)
^urrenQ.y i o r t^e Sheikhdoms r
^ 8 . meuti oned in the previous Chapter, the main trade
ie in the past has been with India, That is now no
longer true, Although it is not possible to quote figures in
* support or this statement since figui*ee are not available, it is
; undoubtedly true that there has been a tremendous shift in import
traae away 1 rom India. The shops provide ample evi. ence of
this fact and &H those with whom l have spoxen who should Know
tne position assure me that the bulk of the ti*ade of Kuwait
and Bahrein it> with the Jnited r.ingdom and certain s-erling
accepting European couiitries. This shirt in trade ie~
progressive.
♦ ^ 4 iaaxing these re;riarks I am disregarding t^ie gold
traffie (which is a Gulf export, anyway,) between Kuwait and
Indit; v.hicr undoubtedly has reached veiy iLPge proportions.
1 a i vvl erring to tnc ordinary co i^iercial trade of the bheikh&o s#
To the extent that the wea-th of the Gulf States reaches the people
such wealth 1inds reflection in greater imports from the United
Kingdom while the trade with India ie static or declining. The
full States have the choice of markets and for one reason or
another, . . . v, uc ts arc aii.i ^ t the ex. e^se of . . ic,,
Tns United K.iagdom now enjoys in the Gulf States the inestimable
advantage oi direct Bhip?fien.t 8 to these places wherss ior'ioi'ly
shipments vrere to iforabay wnence they were reshieped.
¥ 11 i8 true that ttiQ trade of. the Gulf States
has shifted westwards, then it is no longer valid to maintain as
the reason for the continuance of the use of the Indian rupee
that Gulf trade is naturally with India. It is inevitable
that ©s a consequence of the oil royalties accruing to the area,
trade ^ill surge forward to much higher levels tnan v.e have seen in
the past, it seems too that politically, through the same
causes, H. .G. will have to pay much more attention to the area
and seriously consiaer whether a policy of laisee-faire is the
right one in our relations with the Gulf states. The currency
to be used in these States is a vital natter and the tine has’
come I sincerely believe to grasp this nettle, hovvever inconvenient
It •may be at this stage, to solve this problem as. quickly as ’
possible. If we leave things as they are, the pressure from the
oheikhs to have their own currency will increase and the idea
of each eheikhcoxn having its own currency is too appalling to
couteiaplate.
After much thought and bearing the above considerations
in mind, I have come to the conclusion that we should proceed to'
make a currency change without any delay. I
I recommend that h.&.G. should persuade the dheikhs
to replace Indian rupee currency by a uiiifMed currency to be
used in all the bhelkhdORis. 1 suggest we ixitroduce a note
currency to be called the Gulf ut&tes rupee, to be of equal value
v<ith the Indian rupee, (1/6d), and to be excharned at par with
the Indian rupee. This Gulf rupee should be tne metric
system and divided into IOC parts. The Gulf rupee note issue
to be managed by a Currency Board domiciled in London and tne
Gulf Kupee made legal tender in all Sheikhdoms. There v.ould be
Currency r.oard Treasuries in each Sheikhdom, ^ntil a new coinage
can be minted the preten age to continue in use.