'File 19/212 I (C 41) Bahrain Transit Trade' [‎174r] (378/576)

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fact. Failing this be threatened to ship direct to Cgair,
avoiding Bahrain altogether, by a small 500 ton steamer, and
showed me a telegram from a certain firm offering him space.
4 # I told him that I would represent this to the
Bahrain Government, and that I hoped that some solution could
be found on these lines, and upon the steamer leaving I
immediately telegraphed the gist of the above to the Adviser,
pointing out certain drawbacks, one of which is a pose-Vie
diversion of the sugar trade which, however, could be counter
ed by limiting the concession to normal Hejdi requirements.
I also pointed out to him that other merchants might also apply
for the same facility. Nevertheless I recommended this
solution to him and asked him for the views of the Bahrain
Government. He has replied to me that the State considered
this the best solution from the present impasse, but. that they
wished that the minimum, consignment to be 4000 bags, and
added that the concession could only apply to genuine I.ejdi
cargo and that it must be marked n E.E. w 0
5. I suggest therefore that messrs .lackinnon Mackenzie
& Co. may be asked to inform Mohammed Marz.uk that the State
will allow him direct transhipment in Bahrain waters provided
(l) that he pays a net 2 per cent duty, (2) that his consign
ments are not less than 4000 bags of rice or sugar and (3}
that the consignments are genuine Hejdi cargo. Messrs.^.ackuror
Mackenzie & Co 0 I feel sure will be delighted at this solution
as it removes the threat of opposition steamers and although
they will lose in landing charges ( the landing Company at
Bahrain being a subsidiary of the British India Steam Naviga
tion Company) wxii still this loss will be far less than
what they would lose if rival steamers were to be introduced