'File 35/87 VI A. 38 Muscat reforms, customs, finances' [‎27r] (61/440)

CONFIDENTIAL.
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No. 724-S., dated Bushire, the 22nd (received 31st) December 1923.
From—The Hon'ble Lieut.-Colonel A. P. Trevor , C.S.I., C.I.E., Political Resi
dent, Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
Muscat Finances.
I have the honour to invite a reference to Memorandum No. 749-X.,
dated 1st October 1923 (Serial No. 3), from the Government of India in the
Foreign and Political Department calling for my views on the questions
raised by Mr. Wingate in his letter No. 18-R., dated 21st August 1923
(Enclosure of Serial No. 1).
2. I have delayed replying to the abovementioned Memorandum until
I had an opportunity of visiting Muscat, and this I have now done, having
beeo there on the 5th and 6th December. While at Muscat I discussed the
question of the Muscat Finances thoroughly with the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. and
the Financial Adviser. I am afraid the financial position of the Muscat
State is not at all good. As Mr. Wingate pointed out in his letter above-
mentioned there is a progressive decline in Muscat Customs receipts of nearly
a lakh One lakh is equal to one hundred thousand rupees per annum. This undoubtedly points to a considerable decrease in
trade, but that^it means an absolutely corresponding decrease in trade T am
by no means so sure. The Council recently felt constrained to dismiss the
second of the Egyptian Directors for inefficiency—the first one having volun
tarily retired some little time before and T think that without doubt a
proportion of the Customs Revenue has been and is being lost through ineffi-
ci/pcy and possibly dishonesty. Further I believe we have the means of
remedying this to our hand.
3. Mr. Bower who was originally deputed to reorganize the Bahrain
Customs will have finished his job there before the end of January, and his
deputation has recently been extended for another 3 months to try "and settle
the Kuwait Nejd Customs difficulties. It has, however, been apparent for
some time that Shaikh Ahmed has no desire to settle these difficulties, and
just recently Bin Saud has replied to Colonel Knox's suggestion for settle
ment to the effect that he has no desire to do so either. It is thus useless to
retain Mr. Bower for the service for which his additional period of deputa
tion was sanctioned, I understand that Mr. Bower's services are not
required for the moment in India and that he has been promised leave in
the Spring In the circumstances he will apparently be more or less free for
2| months—from say 14th January to 28th March, and I venture to ask that
he may be deputed to inspect and if time permits to reorganize the Muscat
and Oman Customs Department. Though I do not dare to hope for such a
large increase—averaging Rs. 1,150 per diem—in receipts as he has achiev
ed at Bahrein. I fancy Mr. Bower could make a considerable improvement.
In present conditions, however, Muscat certainly cannot afford to pay him
his salary of Rs, 2,000 per mensem : perhaps the State could pay half. If
Mr. Bower could achieve a substantial increase in Customs revenue of
course the State could pay up the balance. I venture to ask whether Gov
ernment would be prepared to pay Mr. Bower his salary and allowances
while at Muscat on the scale on which he is being paid at Bahrain, and
allow the Muscat State to pay it back if and when its Customs revenues have
increased as a result of Mr. Bower's efforts. I feel almost certain that
Mr. Bower's deputation would result in an immediate increase of Customs
receipts, and that in the end the Muscat State would be able (as of course
it should do) to pay for his deputation.
4 If Mr. Bower's services can be utilised in this way and he is will
ing to tackle the Muscat Customs problems, I feel sure as mentioned above,
a considerable increase of revenue will result. While at Muscat I went into
the possibility of raising revenue by other taxes. The only other taxes
which could be suggested were (1) Excise Licenses for spirits, opium and
allied drugs. (2) Municipal tax on house holders in Muttrah and (3) Octroi
on all camels coming into Muttrah from the interior, and I instructed
the Financial Adviser to go into these and see whether they were feasible
and what revenue they were likely to produce—nothing very much, I fear,
less than h a lakh One lakh is equal to one hundred thousand rupees all told.
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