'File 8/7 I Jidda Intelligence Reports' [‎113v] (226/536)

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published in two instalments in the Umm-al-Qura of the 14th and the 21st July,
and constituted a document of thirty-three articles. The concession, which is for
a period of sixty years, is to come into force as from the 7th July, 1933, and active
operations were contemplated for the end of September 1933. Payments,
designated in the Arabic text £ £ loans, ’ ’ are to be made by the company in two
lump sums, the first upon the discovery of oil in commercial quantities, and the
second a year later. In addition, an annual payment, termed “rent,” is to be
paid, commencing from fifteen days from the coming into force of the agreement,
viz., the 22nd July, 1933, and continuing up to the date of the discovery of oil in
commercial quantities. Royalties are fixed at 45. gold per ton net weight of crude
oil, or the equivalent in United States currency on certain terms, and an annual
payment in kind to the Saudi Government of £ £ about ’ ’ 200,000 gallons petrol plus
“about” 100,000 gallons kerosene, free of all charge, is agreed upon. Provision
is made for the eventual erection of refineries, termination of the contract, &c.
Mr. Hamilton, who stated on his departure for London on the 31st May that he
expected to return here in two months’ time, is still away and there is little news
of his intended movements. Rumour has it, however, that the first instalment of
the £ £ loan ” is to be paid next month, and that arrangements have already been
made for the shipment on the 4th August from London (or Holland) of a large
sum in specie.
139. (Reference paragraph 82.) Both the National Bank and the Jedda-
Mecca railway schemes appear to be in the doldrums, as they have given no signs
of life during the month.
140. The activity over the water-supply at Waziriya, noted in para
graph 111 of the last report, has continued with some success. The water was led
through the old underground water-channel to within about half a mile of Jedda
(that is, a distance of approximately 11 miles), where an obstacle was encountered
and a stoppage in the flow resulted. It is considered that the set-back is only
temporary. Meanwhile, the Indian medical officer attached to the Legation
conducted an analysis of the water, which he pronounces to be normally safe at
source.
141. By notification direct to shipping agents in Jedda, the Director of the
Quarantine Administration announced that as from the 20th July the Saudi
Government would increase the tonnage dues in force at this port by 100 per cent,
in respect of all shipping calling here. The dues hitherto levied were 4 p.T.
per 10 tons for the first 500 tons, 2^ p.T. per 10 tons for the second 500 tons,
and the balance at 1| p.T. per 10 tons—registered net tonnage in each case. The
increase will involve for example for the Khedivial Mail Line, whose ships calling
here average 900 tons, an additional sum of about £2 105. per visit, or, they
estimate, approximately £250 per annum. The agents of the Khedivial Mail Line
here have protested, and other companies have followed suit.
142. The misgivings in regard to the situation in Asir vented in the last
report (paragraph 114) proved all too justified by events. Although the province
as a whole remained quiescent, and although there was no armed clash between
Saudi and Imamic forces on the southern frontier, yet the latter were reported to
have been actively engaged with the tribes of the Najran district, an area claimed
by both Ibn Saud and Imam Yahya. The situation is delicate, and with so many
combustible elements involved, the immediate prospects of avoiding a serious flare-
up are not very encouraging. The question, which now largely turns on relations
with the Yemen, will be treated at greater length below (paragraph 148).
143. Towards the end of the month a decree was issued authorising Lie
formation of a Board of Education, composed of five officials, of whom the most
important is the Acting Director of Education, as President.
144. On the 14th July, the Umm-al-Qura published an official decree
announcing the Government’s intention to deal drastically with the problem of
mendicancy in the Hejaz, particularly in the Holy Cities, where the condition of
the beggars, a multitude of unclean, verminous and offensive creatures, was a
reproach to all good (and clean) Moslems and a defilement of the sacred places
Beggars and the unemployed generally were to depart to their homes, either in
this country or abroad. It is not yet known how thoroughly this edict is being
followed up. The question, in so far as it concerns British subjects and protected
persons, bears a relation to the question of the enforced adoption of Saudi
nationality adverted to in paragraph 123 of the June report. The situation,
therefore, is being carefully watched (see paragraph 151).