Coll 20/2 'Administration: Question of abdication of Sultan; Succession and Subsidies; Question of abrogation of treaties with USA and France' [‎372r] (743/757)

situation became, if possible, more critical; the reactions of maladministration
at home, alike on the financial situation and on relations with the tribes of the
interior, became increasingly apparent; and in August 1918 the Government
of India, after further discussion with Sir Percy Cox and Major Haworth,
^pressed to the Secretary of State for India the view that action could not
e postponed indefinitely, and submitted proposals to meet the situation.
28. The Government of India suggested the offer to the Sultan of a loan
of Rs. 51 lakhs One lakh is equal to one hundred thousand rupees at 0 per cent, interest to be paid off in 10 years and to be
secured on the Muscat customs ; the loan to be conditional on agreement by
His Highness to undertake a definite programme of reform which would
result in financial reorganisation and the improvement of the administration
of justice. I he Foreign Office did not consider'^' that the proposed loan
could afford any ground for legitimate protest 1o the French Government, to
whom no reference was accordingly made by His Majesty’s Government, and
it was finally sanctioned by the Secretary of State for India on 4th December
1918.It was borne wholly by Indian revenues, the Treasury refusing to
contribute.J
29. The programme of reform accepted by the Sultan as a condition of
the loan covered the following points :—•
(1) Appointment by His Highness of an Indian, to be selected by His
Majesty’s Government, as Customs Director, who would in the first
instance reorganise existing customs posts, and subsequently extend
a customs system to all ports in Oman.
(2) Fixation of amount of Privy Purse, remainder of State income being
appropriated to charges of administration and payment of
instalments and interest of loan.
(3) Appointment of a Wazir Minister. or Dewan to conduct Courts of Justice and
control proceedings of local governors of districts.
(4) Improvement of roads, establishment of schools, &c.
(5) Reorganisation of Sultan’s guard with a view to its eventual use as
nucleus for a levy corps.
30. Considerable discussion took place regarding these conditions in the
•early part of 1919, Sir Arnold Wilson, then Civil Commissioner, Baghdad,
feeling serious doubt as to whether they did not at once constitute too heavy
a commitment on the part of His Majesty’s Government, and traverse the
principles of self-determination embodied in the post-war policy of the Allies.
They were, however, ultimately substantially accepted by the authorities
•concerned, and were put into operation during 1919. It may be recorded for
convenience at this point that the Commercial Treaty of 1891, which had
been renewed for five years in 1914, was extended for one year jn 1919, and
has been extended yearly since that date.
31. An additional loan of Rs. 1 lakh One lakh is equal to one hundred thousand rupees , borne, like the original loan, by
Indian revenues, was sanctioned by the Secretary of State for India in
February 1920, raising the total of the advance to Rs. lakhs One lakh is equal to one hundred thousand rupees , repayment of
which was to be made in 19 equal half-yearly instalments of Rs. 46.740. 5.§
32. The very considerable degree of indirect control represented by the
measures described in para. 29 was justified from the point of view of
Muscat by their results. By the beginning of 1920 the Sultan’s debts had been
discharged with the assistance of the additional loan ; steps had been taken to
introduce financial order; the result of the appointment on 1st October 1919
•of three trained Egyptian customs officials to reorganise the customs, which
provided the major part of the revenue of the State, was seen in a balance
in the Treasury on 1st October 1920 of Rs. 3| lakhs One lakh is equal to one hundred thousand rupees , j and a regular Court
of Law, though with less immediately satisfactory results, had also been
established. In addition, a European Wazir Minister. (Capt. McCollum, formerly
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) was employed from January to August 1920, when
the reorganisation of the administration referred to in paras. 35-6 below
rendered it possible to dispense with his services. Early in 1921, a Muscat
levy corps under a British officer, which has since been maintained at a
strength varying between 200 and 250, and which is now recruited from the
Makran coast, made possible the withdrawal of the Indian troops maintained
Tel. from Viceroy
to S. of S. for I.,
Aug. 16 1918,
P. 3661/18.
* F.O. to I.O.,
Nov. 5 1918,
P. 4913/18.
t Tel. to Viceroy,
Dec. 4 1918, P. 4913.
£ Treasury to F.O.,
Jan. 10 1919 ; S. of
S. for I. to Viceroy,
Feb. 14 1919,
P. 371/19.
P. 901/14.
§ Tel. to Viceroy,
Feb. 9 1920,
P. 863/20.
Tel. 1635 S. from
Viceroy to S. of S.
for I., Dec. 5 1919,
P. 8033/19 : G. of I.
Desp. 37 to S. of S.
for I., Mar. 31 1921,
P. 1969/21.
|| Pol. Agent to Pol.
Res., Oct. 12 1920,
P.8572/20 ; Feb. 10
1921, P. 2023/21.
P. 5218/21, 2230/26.