Coll 29/2(6) 'Indian treasuries in Persian Gulf' [‎60r] (120/143)

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EXPRESS LETTER.
PERSIAN GULF The historical term used to describe the body of water between the Arabian Peninsula and Iran. RESIDENCY An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. , BAHRAIN.
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From
To
REPGU, Bahrain
SECRO, London
No. 3576-93/6. Bahrain 3rd December, 1947,
Urgent decision is required regarding
financing of Muscat Agency An office of the East India Company and, later, of the British Raj, headed by an agent. after March 31st 1948 when
Government of India Treasury there will presumably
be closed. Even if the Eastern Bank decide to establish
a branch there it is unlikely that this decision can
be put into effect before the beginning of 1949 at the
earliest.
2. 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. reports that the average
income of the Muscat Agency An office of the East India Company and, later, of the British Raj, headed by an agent. is approximately Rs. 1,000
per month and that the average monthly expenditure
Rs. 8,000 in addition to which bills averaging rupees Indian silver coin also widely used in the Persian Gulf.
12,500 monthly are paid on account of the R.A.F.
apparently on account of expenditure incurred by them
at Muscat and Salalah.
3. There appear to be 3 possible courses:
(i) The appointment of the firm of Messrs.
Kimji Ramdas as official agents c*f. para. 4 of note
(x) regarding currency forwarded with my demi-official
letter No. 921-3 dated the 15th May 194 7. This will
'entail entering Into~a contract with the firm and
paying them a remuneration.
(ii) An arrangement with the Muscat Government
whereby their Treasury will act as our treasurers.
(iii) The provision of funds for the Agency An office of the East India Company and, later, of the British Raj, headed by an agent. by
means of sterling drafts on the Treasury in London which
will be sold to either the Muscat Government or a local
firm. 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. reports that he does not
expect any difficulty in arranging the sale of drafts
in this manner.
4. Of the above courses I think the third
is probably the best. It really means that the Political
Agent will continue to maintain his own treasury as at
present. If any difficulty is experienced in selling
drafts it will presumably be possible to keep the Political
Agent in funds by forwarding cash by steamer from Bahrain.
It will in any case be essential that he should maintain
an ample balance.
As will be seen from the correspondence
forwarded with my Printed Let ter No_ . 3434-93/5 cash
amounting to approximately RsT 22 lakhs One lakh is equal to one hundred thousand rupees ^Ts at present
held in the Muscat Agency An office of the East India Company and, later, of the British Raj, headed by an agent. Treasury in addition to this
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. reports that there i^ about Rs. 25 lakhs One lakh is equal to one hundred thousand rupees
in the Muscat Government Treasury and that by far the
greater proportion of this has been lying moribund in it
for a number of years•
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