'Cairo: Reports, Notes, Copies of Correspondence regarding Arabian Affairs, Policy Etc' [‎19r] (39/64)

set aside monthly it would produce £72,000 per annum, sufficient to pay 7
per cent, on a loan of £500,000 and to create a sinking fund for repayment
in less than 15 years.
The King's stipend will have to be fixed with reference to those drawn by
other Arab chiefs. Ibn Saud at present receives £5,000 per month, but doubt
less this will be reduced. It is considered that King Husein's stipend should,
in any case, be greater than that of Ibn Saud.
In the present state of uncertainty as to the outcome of the negotiations
now proceeding for the settlement of Arabian and Syrian territories, it is
difficult to foresee what share King Husein will have in future in Arab rule
outside the Hejaz proper, and particularly how far he w ill have to provide or
assist .civil Government, railway administration, etc., north of Maan.
Our present discussions w T ith him might, however, be based on the
assumption that his activities will be confined to the Hejaz Province as. it
existed under Turkish regime and that the financial assistance now contempla
ted is for the development of that area only, the districts of Khurma and
Qunfudah being for the time being excluded.
It is very important that the Hejaz boundaries should be fixed at an
early date, more especially those between Nejd and Asir as King Husein will
certainly continue to heavily bribe the tribes on and across his borders in order
to influence thtir allegiance until we are in a position to instruct him that his
activities must be confined within the recognized Hejaz boundaries, and that we
will not countenance any encroachments or external propaganda by him.
Attached is a Budgetary Statement prepared by Colonel Wilson in April
last. It was compiled from ceitain figures supplied by the King but several
items w ere estimated by Colonel Wilson personally, e.g., items 5, 6 and 11.
Although according to the King's figures the expense include those of
quarantine, water supply, Tax Departments, Harbour Masters, post offices,
etc., no revenues are included from any of these services, the King's list only
showing the receipt of £15,000 per month from Customs.
Also, with regard to the £3,000 per month shown as expenditure for the
Medina-Maan railway, no Railway receipts are shown.
The cost of personnel for Medina would appear to be overestimated as it
amounts to over three-quarters of that for Mecca, Taif and Jeddah combined.
£3,000 per month for hire of camels from Yanbo to Medina also seems an
excessive item, as it is presumed most of the material to be transported will
be merchandise at the owner's expense.
A total of £27,000 per month for Army expenditure also seems more than
the King can afford.
The King in his statement also included large sums for his Ministry of
Wakfs and the Haram employes (£1,000 per month), Imams, and for the
relief for sick and needy, all of which it is thought should form a legitimate
charge against Wakfs revenues.
The statement is very incomplete and not a great deal of use, in spite
of the fact that it was telegraphed to the Foreign Office in support of a re
commendation that the King's subsidy should be maintained at £120,000 per
month.
H. GARLAND, Major,
Assistant Director> Arab Bureau.
Cairo ;
The 18th November 1919.
To
Civil Commissioner, Baghdad, for information and retention.
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