'File 19/109 VI (C 45) Bahrain Relations with Foreign Powers' [‎24v] (65/520)

the whole period. He is very much the King's man and Ibn &a ud has shewn a
tendency to put him in the forefront, although it is clear that he himself still pulls
the strings.
4. Finance. —The financial situation went from bad to worse early in the year.
Pilgrims have come forward in somewhat greater numbers than was anticipated
but the total number from overseas seems unlikely to exceed 50,000. Revenue
must suffer accordingly. The two most notable indications of Treasury straits
have been a heavy increase in customs duty on most staple imports, which was
announced in the " Umm-al-Qura " of February 6th ; and a temporary decline of
the silver currency, which became acute in February. The silver riyal, the value
of which is officially fixed at 10 to the gold pound sterling slumped to 13 or even
lower in Jedda and Mecca. The Government found themselves short of gold,
although it always seems possible to produce some at a pinch. They made strong
efforts to restore the balance between riyalsand pounds. It may be said in
anticipation of the next report that they succeeded, but only by prohibiting the
export of gold and by arrangements with the Dutch Bank in Jedda, the exact
nature of which has not been disclosed, to accept riyals at 10 plus a small margin
in payment for drafts on foreign countries. It was suggested that Mr. Crane
might in some way come to the help of Ibn Sa'ud. There is no indication that he
did so. Further rumours of American financial assistance were floated when,
about the same time as Mr. Crane, Mr. Dickerson, the Commercial Secretary of the
United States Legation at Cairo, visited Jedda in the course of an extensive tour.
On hearing that the bazaars were talking of an American loan to the tune of
£1,000,000, Mr. Dickerson laughed.
5. His Majesty's Minister took up with Sheikh T usuf Yasin on February 5th
the outstanding claims of the Government of India, the Eastern Telegraph Company
and Messrs. Gellatly Hankey and Company. [September to November report
paragraph 3 (6).] The position at the end of February was that the Government
of India claim was still completely in the air ; the Eastern Telegraph Company
had some prospect of being paid, but the Government were trying hard to engineer
a settlement in riyals ; and Messrs. Gellatly Hankey's situation was a good deal
easier. In the last named case the financial authorities on February I deposited
with the firm 55,000 riyals, with promise of redemption in six weeks to cover the
balance of £5,000 still due in respect of their loan to the Government. At one
moment it looked as though they might be hit by a refusal to accept drafts on
Customs, of which they held large quantities, in payment of duty, this being the
only means of realizing them without loss. The idea of thus dishonouring their
own drafts was, however, relinquished by the Government. The wages of the
unfortunate Sudanese chauffeurs [December report paragraph (2)] were still greatly
in arrear at the end of February.
6. The Government are heavily indebted in other directions. They are said
to owe the Qusaibi firm some £80,000 and the rich Governor of Jedda £4,000. In
January, however, the Director of the Dutch Bank expressed the view that the
whole floating debt did not exceed £500,000 and that the country should be solvent
with good management. Good management is unfortunately the last thing than
can be hoped for. The only economy consistently practised is that of evading
payment of debts although certain services are starved, e.g., the supply of doctors
in the sanitary service has decreased in recent years.
7. General. —There was no news of any important development in the interior
in January and February, although silly rumours of the usual kind were circulated
in connection with the King's visit to Nejd, how, for instance, there had been
dissension in the Royal family ; the King had practically fled from Riadh, etc.
Early in January there were reports, more substantial in appearance of trouble
with the Ajman tribe but they were not confirmed.
8. Ibn Sa'ud's accession was celebrated in the Hejaz on January 8th and 9th
in a manner similar to that of last year (Report for January 1930, paragraph 23).
The view held by some that such celebrations are un-Islamic seems to have been
definitely set aside.
9. Much excitement was aroused in February on its being announced that on
the second day of the 'Id festival there had been a war dance at Mecca in which