'A précis of the Relations of the British Government with the Tribes and Shaikhs of Arabistan. By Lt A T Wilson, Acting Consul for Arabistan' [‎25] (39/134)

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CHAPTER V.
Statement of the Circumstances attending the Establishments of the
Belgian Customs Administration in 'Arabistan, showing the Privi
leges and ke SPONSIBILITIES of the shaikh of mohammerah in that
regard, the attitude and undertakings of hls majesty's govern
ment to the Shaikh in the matter, and the Difficulties which have
arisen between the shaikh and the customs up to the present day.
On the 21st March 1900, the control of the Customs of the Gulf was
taken under the direct management of the Persian Government, and Custom
houses established at Bushire, Bandar 'Abbas and Lingah. At first it was
intended to impose a uniform import duty of 5 per cent, ad valorem, instead
of the old specific rates on all goods imported by native merchants. This
proposal caused much excitement and was stoutly opposed. The Persian
Government therefore decided to introduce a new tariff on a sliding scale
which would be more favourable to native merchants than the 5 per cent, rate
proposed. This tariff was also opposed, but the Persian Government remain
ed firm, and by the first week in August the new tariff came into force. Eight
months later, the Customs Administration succeeded in bringing into force
the 5 per cent, rate for all native-owned goods and native and foreign mer
chants henceforward were on the same footing as regards the payment of
duty.
So far as the latter were concerned, the establishment of the Belgian
Customs Administration was beneficial and various much-needed improve
ments were effected under the new regime.
In 'Arabistan, however, special conditions prevailed which did not exist,
or at all events not in the same degree, elsewhere in the Gulf.
Up till 1903 1 the Customs-houses of 'Arabistan were under the control of
the bhaikh who farmed them from Government for an annual sum decided on
at Nau Ruz. Exemptions from Customs duties were allowed to the Shaikh
ot Mohammerah and to his headmen, as well as to numerous other officials.
The principal articles imported for Shaikh's tribes, such as tea, coffee,
arms and ammunition imported, and dates, dried fruits, wool, etc., exported,
were duty free. With these exceptions, the duties imposed were generally
speaking the same as at other Gulf Ports.
The establishment of a Customs department on European lines, there
fore, to put in force a tariff which heavily taxed such necessaries as sugar,
tea and coffee, and prohibited the import of arms, was more than a mere ad
ministrative reform, it was a revolution involving sudden and serious increase
in the cost of the necessaries of life. 2 It affected the pocket of all alike and
revenue derived from this charge was spent not in the locality but was remit
ted to Tehran in liquidation of State debts from which 'Arabistan, in common
with the rest of Persia, had gained nothing.
In the more remote parts of the province such as Hawizeh and Eallahiyeh,
no Customs duties worthy of the name had ever been exacted and any attempt
to do so would have met with strenuous opposition, and ultimate violence,
from the Arab tribes of the locality. Eight years' experience of the Customs
has not diminished this feeling and the Customs in Fallahiyeh still work
very circumspectly and collect but little revenue, whilst in Hawizeh they are
non-existent. 3
In his strong opposition to the Customs therefore. Shaikh Khazal was
only reflecting the attitude of his tribesmen, though he, of course, also stood
to lose financially by the change. His principal objection, however,
1 In July 1897, an attempt was made to establish a Persian Custom-house at Mohammerah, but this fell
through owing to the opposition of Shaikh Khaz'al.
2 The new tariff was not put in force till 1903, but its advent was foreseen.
Proposals to establish a Customs post here were under consideration of the Customs Administration in 1910-11 ;
though it was officially denied that any such step was in contemplation.
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