'Collection of papers respecting the attitude of His Majesty's Government in regard to the Bagdad Railway and the Purchase of Land at Koweit (amended version)' [‎10r] (19/34)

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Sheikh levies import d tty of 5 per cent, ad valore m on all commodities. We see no
primd facie objection to Sheikh’s proposals on this head, but will communicate matured
opinion later. As to suggestion by Knox for inclusion of declaration that British
Government wishes to sec Sheikh strong and independent, we do not consider any such
declaration necessary if Sheikh does not hi ms ell press for it.
Inclosure 3 in No. 11.
Major Cox to Government of India.
Bushire, Februaiy 10, 1907.
IN continuation of my telegram dated the 10th October, 1906, 1 have the honour
to submit copies of two communications received from the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. , Koweit,
in which he reports the progress of his negotiations with Sheikh Mubarak in connection
with the acquisition of the foreshore of Bunder Shweikh in Koweit Harbour.
2. Briefly summarized, the purport of these Reports seems to be as follows:—
Sheikh Mubarak evinces his readiness to let us have a piece of frontage measuring
1,200 zaras (600 yards approximately) in length wherever we like to select it, and
having a depth of 200 zaras back from high-water mark, and carrying with it the
disposal of the space between this frontage and the 3-fathom line.
It will be seen from the “ Survey of the Port of Koweit,” dated April 1905, issued
by the Dehra Dun Survey Office, that this length of foreshore would give us the
whole of the valuable rock-fronted strip in the neighbourhood of position (B) shown
therein. — *
If we attach great importance to the purchase outright of the site selected, Sheikh
Mubarak is willing so to part with it, but his inclinations are rather in favour of a yearly
“ quit-rent,” by which I understand Major Knox to mean an unalterable amount to be
paid by us annually as long as we need the site. In other words, rather than receive a
lump sum the Sheikh would prefer that we should recompense him for the transfer of the
ground to us by giving him a yearly subsidy.
Major Knox suggests that in the first instance we should either make him an
offer of quit-rent at the rate of 2 rupees Indian silver coin also widely used in the Persian Gulf. per linear zara (= 2,400 rupees Indian silver coin also widely used in the Persian Gulf. per annum),
or, in the alternative of buying the grout.d outright, at 50,000 rupees—about twenty
years’ purchase. He anticipates, however, that Sheikh Mubarak may not be satisfied
with these terms, and may even endeavour to run the figures up to four times the
amounts just mentioned.
3. Sheikh Mubarak, after several times speaking of it in parables, has now
specifically raised the question of a subsidy, and referred to his interview with Lord
Curzon, and 1 venture to express the opinion that the acquisition of this ground
furnishes us with a convenient opening for inaugurating such a subsidy in an indirect
way which would give the Turks or others as little ground as possible for suspicion or
demur. We might record an agreement to pay Sheikh Mubarak a certain substantial
sum as quit-rent for this ground in an ordinary deed of tramfer, and in another
subsidiary and secret document we might stipulate that a certain proportion of the sum
referred to in the fir-t document was to be considered contingent on the friendly
attitude and steadfast adherence of the Sheikh to his Treaty engagements with us.
To start with, the offer might be made of 1,250 rupees Indian silver coin also widely used in the Persian Gulf. per mensem, out of which
in the subsidiary Agreement it would be stated that the payment of 1,000 rupees Indian silver coin also widely used in the Persian Gulf. per
mensem would be subject to the conditions above mentioned.
Considering the possibly vital importance which may attach to this piece of
foreshore, the figure is inconsiderable, and at the above rates would be the precise
amount originally suggested as a suitable subsidy—namely, 15,000 rupees Indian silver coin also widely used in the Persian Gulf. per annum.
4. Upon the general question of our subsidizing Sheikh Mubarak I need hardly
.dilate. It was lully discussed by my predecessor in his letter of the 5th ^February,
1904, to your address, pursuant to the visit of his Excellency Lord Curzon to the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , and was subsequently mooted in connection with the proposal to support
Sheikh Mubarak in establishing posts on Bubian Island. Possibly it is still under
consideration in conjunction with that question.
From the point of view of the Government of India’s local representative, I have
always been strongly in favour of the grant of a subsidy to Sheikh Mubarak as being
a course calculated to strengthen our position with him considerably. It seems to be a