'File 19/212 I (C 41) Bahrain Transit Trade' [‎29r] (76/576)

2.
and facilities that have made such incidents a thing of the
past. The levy of port dues at Bahrein would probably form
an awkward precedent,and one which the Persian Government
might desire to follow though the facilities they provide
are everywhere negligible.
4. Jfrom the express letter received today from the
Hon*ble the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. I find that the Indian
merchants at Bahrain have appealed both to him and to my
locum tenens regarding the overside deliveries,pointing out
that the practice would Involve the ruin of their mainland
buisness. As you are probably aware,their branches on the
mainland were closed by order of the Kedjas-Nejd Government
a few years ago,and they are obliged to maintain Arab agents
to handle their business there. This they do at present by
selling their imports to an Arab firm at Bahrain while the
goods are in Customs charge,the consignment being subsequently
re-exported by the Arab firm to its agents on the mainland.
Should the arrangement fail they can always import the con
signment (almost invariably rice) into Bahrain and so get theij
money back. If.however,anyone is allowed overside delivery,
the Indian importer is completely out out.as he has no branch
on the mainland to handle consignments and is obliged to sell
his goods for anything that is offered. As a representative
of the Indian Government any loss of business to Indian
subjects is naturally a matter of concern to me,and I feil
sure that if a profit is to be made.you yourselves would
prefer that an Indian firm rather than a Hejdi firm should
make it.
5. The Mesopotamia Persia Corporation have represented
their case to you and shown the loss that overside deliveries
will involve for them.but of course there is the question of
the loss of cargo to the British indian Steam navigation Coy
to be considered. I have discussed the matter with the
Manager of your Karachi Branch.and it appears that he con
sidered that the British India Steam navigation Company were