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Ext 2823/41 'Bahrain. Report of ban on export of gold & silver coinage. and subsequent smuggling.' [‎10r] (19/64)

The record is made up of 1 file (30 folios). It was created in 18 May 1941-10 Jul 1942. It was written in English. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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- 2 -
has imported two lakhs One lakh is equal to one hundred thousand rupees of rupee coins. It is feared that when
the hank opens this stock of rupees Indian silver coin also widely used in the Persian Gulf. will rapidly he exhausted and
the Dank will oe compel led to import more a somewhat serious
matter as freight charges eto, on a lakh One lakh is equal to one hundred thousand rupees of rupee coins amount to
about Es.3000/-.
5. It is difficult to understand what happens to all the
rupee coins which are sent to S&udi Arabia. Their silver content
is low and there can be little temptation to hoard them. They are
not legal tender in Iraq, and in Saudi Arabia there is a religious
taboo based on some passage in the ^uran, about which I hope to
obtain more particulars, against their exchange into rials. This
taboo does not apply to sovereigns or Iraqi dinars, and when it
is necessary to convert rupees Indian silver coin also widely used in the Persian Gulf. into rials or vice versa the
exchange is effected through one of these currencies. Over a
hundred lorries recently arrived in Kuwait to fetch supplies for
Jeadaii, The leader of the convoy brought a draft on a bank in
Iraq for 7000 dinars end this was converted into rupees Indian silver coin also widely used in the Persian Gulf. in the
Kuwait bazaar, it seems unlikely that the rupee oo^b find their
way back to India for the purchase of gold there as notes could
be muon more conveniently used for this purpose. A certain number
no douot return to Bahrain and Kuwait to pay for comaiodities being
exported to Saudi Arabia, but the fact remains that a large
proportion of the coins do not return and there is therefore a
constant demand for a supply of new rupee ooins to replace them,
6. The action already taken in Bahrain is explained in the
first enclosure to this letter. In Kuwait a proclamation has been
published prohibiting participation in the smuggling of gold from
xnd ia vide the fourth enclosure. An embargo on the export of gold
from Kuwait would be ineffective owing tc the impossibility of
preventing suoh export by sea and land, and 1 am doubtful also
wueLaer an effective check could be placed on the export of rupee
ooins, even if the Shaikh were willing to prohibit such export.
7. X find it difficult to understand the implications of
these movements of gold and rupees Indian silver coin also widely used in the Persian Gulf. and should be glad to know how
the

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Content

The file contains correspondence regarding the imposition of an export licence system on the trade of gold and silver in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. region, at first to understand the flow of trade, and then to restrict it, lest gold find its way through Turkey into enemy-occupied destinations. Correspondents include the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , the Secretary of State for India, 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. , Bahrein, and the Ruler of Kuwait.

The file also contains the proceedings and conclusions of a conference (folios 14-16) held to discuss measures for preventing the smuggling of gold and silver out of Bahrein consequent on the tightening of restrictions on export, which was attended by: Charles Dalrymple Belgrave, Adviser to the Bahrein Government; 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. , Bahrein; the Manager of the Eastern Bank, Bahrein; and the Director of Customs, Bahrein.

Extent and format
1 file (30 folios)
Arrangement

The file is arranged roughly in reverse chronological order.

Physical characteristics

Foliation: the foliation sequence commences at the front cover with 1 and terminates at the inside back cover with 32; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio.

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English in Latin script
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Ext 2823/41 'Bahrain. Report of ban on export of gold & silver coinage. and subsequent smuggling.' [‎10r] (19/64), British Library: India Office Records and Private Papers, IOR/L/PS/12/516, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100037114254.0x000014> [accessed 28 March 2024]

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