'File 61/11 VII (D 122) Hejaz-Nejd Miscellaneous' [‎184v] (387/454)

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5. General trading conditions may be said to have shown some improvement ' ^
during the period under review. Chiefly owing to the larger pilgrimage, there # J
have been increased clearances through customs and a somewhat better tone in 0
the market. This, unfortunately, does not mean that conditions can be described
as satisfactory, but the tendency is encouraging. Protests were again evoked
during the year by the practice of the Government of importing goods, iW 111116
particularly rice, through one importing firm. Messrs. Haji Abdullah Alireza Jp 11 ^ e( -
and Co., to the detriment of others, with the result that some small redistribution if W
of favours was effected to soothe the malcontents. The system adopted by the I® 56
Saudi Arab Government of settling their local indebtedness by allowing rebates d ^
of customs dues on goods imported was maintained through the year, although rrf
in its early months the Government appeared disposed to abandon it. Adverse
comment, and perhaps a realisation of the convenience of the system to the
authorities themselves, led to a continuance of this practice. From one source
it is gathered that the total number of packages to enter through the port of
Jedda during the past twelve months was 620,000, of which some 120,000 were
for the Saudi Arab Government or foreign diplomatic missions, and hence duty
free.
6. Expoi'ts continued to be negligible (they were estimated in March last,
for the previous twelve months, at about £8,000 gold), but may be expected
during recent days to have received a fillip from the reported purchase of camels
from this country by the Italians for purposes connected with the war in
Abyssinia, a subject on which separate reports have been submitted. About
1,000 camels are said to have been shipped from Yanbu, though confirmation is
still awaited, and the price paid is generally believed to be in the neighbourhood
of £15 gold per camel.
7. The visible adverse balance of trade is therefore heavy and has been
estimated locally by a confidential, but well-informed, source as about
£1,261,000 gold for the year 1351 A.H. and £981,000 gold for 1352 A.H.
8. Economy has again been rigidly practised, except perhaps in certain
items of Royal expenditure, and once more at the expense of Government officials,
whose salaries, when paid, were invariably in arrear, whilst in the early summer
steps were taken to effect an all-round salary reduction of 25 per cent., two-thirds
of the now reduced salary to be paid in cash and one-third in kind, the cash
payment to be reckoned in gold at a rate highly unfavourable to the official.
. 9. Apart from the system of customs drafts, described above, the Saudi
Government are believed to have been able to meet current liabilities. One signal
instance, either of a recognition of the advantages to be derived from a settlement
of debts or of a desire to please, may be recorded when, in May 1935, they repaid
the whole of one small debt due to His Majesty's Government and 10 per cent,
of a larger one due to His Majesty's Government and the Government of India.
10. Little or no additional taxation has been imposed during the past twelve
months, except in the case of certain minor matters, such as the imposition of
an annual tax of £2 gold on wireless receiving sets, permission to import and
use which, restricted to certain towns of the Hejaz, was one of the notable
concessions to Western influences of the year.
11. The history of the period under review as regards currency has been
more eventful than in past years. A shortage of silver rials, probably in some
measure due to hoarding, made itself felt during the summer, when rates per
£ gold showed the following sharp movements :—
April 1 ... ... ... ... ... ... 21
June 1 ... ... ... ... ... ... 20
July 1 17 18
July 11 14^
July 31 16 -8
August 17-6
September ... ... ... ... ... 18^
A further unusual feature was the importation through Jedda from India by
Messrs. Haji Abdullah Alireza, for the account of the Saudi Arab Government,
between May and November inclusive, of 1,630,000 rupees Indian silver coin also widely used in the Persian Gulf. ; and a further consign
ment of 400,000 rupees Indian silver coin also widely used in the Persian Gulf. is shortly expected. The reason advanced is that the
rupee is a more convenient coin for use in Nejd than the Maria Theresa dollar,
.and a more popular one with the tribes than the Saudi rial.