'File 8/7 I Jidda Intelligence Reports' [‎127v] (254/536)

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212 in Jedda report for last month. These difficulties had been brewing for
several months, and may be attributed to Sharqieh (Limited) s failure to carry out
their obligations under their contract with the Government. The latter were
in urgent need, for military purposes in connexion with their expeditionary
force in Asir, of 200 motor vehicles and a supply of tyres, but Mr. Philby had
left for Europe on the 18th May and the vehicles and tyres had failed to
materialise, further, the company’s skeleton staff in Jedda had made no attempt
to open up service stations in accordance with the terms of the concession. Whilst
in England, Mr. Philby got wind of an arrangement under consideration by the
Minister of Finance, whereby a consignment of British tyres in the Customs here,
imported by Muhammad Sadiq, the King's Indian chauffeur upon authorisation
given, it is said, before the grant of the tyre monopoly to Sharqieh (Limited),
was to be taken over by the Government. He telegraphed protesting against
the infringement of his concession and was thereupon allowed by Ibn Saud one
month in which to return and effect an arrangement with the Minister of Finance
and Muhammad Sadiq. Mr. Philby, as was recorded last month, returned in
haste and negotiations took place between him, the Minister of Finance, Messrs.
Gellatly, Hankey and Co., Muhammad Sadiq and a representative of General
Motors, a Mr. Daimpre, who had in the meantime also arrived here from Egypt.
The result, in brief, was the virtual abrogation of the Sharqieh concession in
regard to motor vehicles and the signature of a contract for the supply of fifty
Chevrolet trucks with Messrs. Gellatly, Hankey and Co., as agents, and Sadiq,
as sub-agent, on terms considerably less favourable to the Government than
Sharqieh (Limited) had been prepared to offer. The Umm-al-Qura of the
17th November contained an announcement in which the Sharqieh concession in
regard to cars was, in effect, abrogated, though the contract in respect of tyres
appears to have been maintained, probably in some modified form. Mr. Philby,
who still appears to hope to import Fords for pilgrimage and private uses, though
only in open competition, left hurriedly for Egypt on the 17th. His journey
is said to have been taken in order to make an arrangement with Ford’s to
supply cars for Government use nnd he is believed to have received an advance
of money from the Government for this purpose. He was still away at the end
of the month.
242. The demise of the National Bank scheme (and the Jedda-Mecca
Railway project, for the fate of the latter now seems as apparent as that of the
former), has seemingly not quenched all hope in this country of a national bank.
The forthcoming visit by aeroplane from Cairo of Talaat Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. Harb, Egyptian
Senator and chairman of directors of the Banque Misr, though ostensibly for other
purposes (see paragraph 254 below), is considered here to be not unconnected
with a possible extension of the activities of the Banque Misr to this country.
243. (Reference paragraphs 168 and 194.) The Hyderabad textile industry
scheme at Medina, organised by Dr. Moin-ud-Din, is receiving further supplies
from India, a quantity of material, ^including twelve looms, having arrived here
towards the end of the month.
244. There has been no appreciable change in the situation in Asir
(reference paragraph 217) during November. Strong rumours were current
locally during the first half of the month that Saudi troops had crossed the
frontier in the Tihama and after heavy fighting had penetrated as far south
as Medi. Both Amir Feisal and Fuad Bey Hamza categorically denied these
reports to His Majesty’s Charge d’Affaires and the Umm-al-Qura published on
the 24th an article, of obviously official inspiration, containing a similar dementi
of reports alleged to have appeared also in the foreign press. Saudi military
preparations are thought to be now complete, but recruiting is believed to be
going on still, and on the 13th November a further batch of from 400-500 troops
left Jedda by sea for Jizan. The general situation will be further treated below
in connexion with Saudi relations with the Yemen (see paragraph 245).
II.— Frontier Questions and Foreign Relations in Arabia.
245. There has been no detente in the relations between Ibn Sand and the
Imam Yahya during the month (see paragraphs 219 and 220). In Asir (see
paragraph 244 above) the general position remained much the same, save that
additional reinforcements continued to be drafted south. In Najran Imamic
forces still maintained a substantial hold on the district and still occupied Badr,