'File 35/87 VI A. 38 Muscat reforms, customs, finances' [‎208r] (423/440)

t 20^
No. T.1-35/37.
S.3."Ohakdara,the 27th November 1927.
From
The Hon*ble Lieut,Colonel L.B.H.Haworth, I.a.,
. oli L,ical -iiesident in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
To
The Foreign secretary to the Cxovermaent of India,
Hew Delhi,
oX JjieJ-qan hy the Mu scat G ov eminent ,
0 . x r D h no.
Sir,
In continuation of the correspondence ending with
y^ur letter Ho. 1392-ri«A«, dated the 15th Beptemher 1920,
I have the honour to forward herewith a copy of a letter
No.K/73, dated the 21st August 1927, from the Political
Agent, ...uscat, with enclosures, on the subject of the
extension of the period of repayment of the loan made "by
us to the lluscat Government.
The loan originally given to the State amounted to
Bs.6,501000 to which was added an aiuount calculated at
interest at 6% over 7 years, viz Es. 2,58,065-15-0, making
a total of 1^.8,88,065 -15 -0. This amount was then divided
into 14 six montly payments of j R s .46,740-5-0 - the whole
to he paid off in the 7 years above mentioned.
The Muscat State has now repaid Bs.6, 54,364-6-0, a
total slightly in excess of the original loan,, thus the
balance still due, Ss. 2,337-1-9, may "be taken as represent
ing the interest which has "been incurred. The State now
inform us that they can continue to pay the instalments
in the manner stipulated hut they urge the point that so
4^ fa y & 'A'
Iletigay a payment handicaps the State very considerably in
the provision of the improvements which any properly
managed state should show in the way of schools etc.
They have then asked that in place of paying off the