Coll 6/10(2) 'Saudi-Arabian Affairs: Financial and Internal situation' [‎5r] (9/54)

THIS DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY’S GOVERNMENT
EASTERN (Arabia).
(* --
CONFIDENTIAL.
[E 8085/549/25]
P.Z.
.192
1940
December 22. 1939.
Section 1.
Copy No.
Sir R. Bullard to Viscount Halifax .— {Received December 22.)
(No. 169.)
My Lord, Jedda, November 30, 1939.
THE foreign policy of this country, that is to say, of Ibn Baud, has been
fully dealt with in despatches written since my recent return from Riyadh, and
a brief note on the armed forces of Saudi Arabia is being sent by this bag. I now
have the honour to submit a short report on the internal situation, to round off
the position of Saudi Arabia before leaving for another post. There is little in
it that has not been said before in despatches from Jedda.
2. Few countries in the world can have a better record for the maintenance
of law and order than Saudi Arabia has at the present time. The only crime of
violence that I have heard of for months was a case of rape and murder, which
was recently punished at Riyadh by the execution of three men in the public
square. Theft and robbery continue to be punished with a Quranic severity
which makes the immunity enjoyed by highly-placed embezzlers of public moneys
rather repulsive. What is most remarkable is the complete suppression of the
tribal raid and blood-feud. There is no evidence of the effect which this is having
or may have in the long run. It may be suppressing feelings which will break
out as soon as the hand of Ibn Sand is weakened or removed. It must be causing
an increase of population, which sooner or later must find a livelihood outside
the narrow limits of desert pasturage. The oil industry in Hasa will absorb a
considerable number (I believe that it already employs over 2,000 workmen), and
attempts are being made to utilise existing water supplies to better advantage and
to find fresh ones, so that there may be a demand for more cultivators. How far
the new opportunities for making a livelihood will keep pace with the expected
growth in the population must be a matter of speculation.
3. I have reported more than once, as a matter for regret, the weakness of
Ibn Sand’s regime in the matter of administration. The King is evidently a
past-master in desert politics and in the maintenance of law and order even m
places so unruly as Asir, and, in spite of his lack of personal experience of
the outside world, he grapples with the problems of foreign policy with success.
But he seems to have no conception of the importance of the revenue and finance
side of the administration to the common people, and leaves that to inexperienced
and venal officials, whose only unpardonable crime would be to keep the King
short of money. In justice to the King, however, or to his officials, it must be
recorded that he suggested in August that a National Bank (preferably British)
should be established in this country to finance the operations of the Saudi
Government and keep the currency stable; and that the threat of wai induced
the authorities to promulgate certain financial measures which have had a
beneficial effect upon the market in Jedda : the customs dues were reduced, as a
temporary measure, by 20 per cent.; facilities were offered which enable the
importer to store his goods without charge, and to postpone payment Ol the
customs dues on them, until he can sell them; and the Government even offered
to lend to importers, without interest, one-fifth of the cost of food-stufts ordeied
from abroad The Government has also taken an interest in agriculture to the
extent of obliging the California Arabian Standard Oil Company to search for
water in various places for the Government, and bringing in Iraqi irrigation
engineers to utilise the waters of the “bottomless ” wells of Khar] 100 miles
or so from Riyadh. It will probably be found that people like the Minister of
Finance Shaikh Yusuf Yasin, and the King’s family will have most of the new
land but it is something that production has not been entirely forgotten m the
deli Mi t of spending. The drafting of this despatch had just reached this point
when news was received from Iraq that certain Iraqi cultivators, attracted by
the reports from Kharj, had left for Saudi Arabia. It might have been better
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