Coll 6/10 'Hejaz-Nejd Affairs: Financial Situation and Internal Situation' [‎53v] (113/1310)

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economic interest of their two countries by unifying duties throughout the two
countries or by special regulations designed to secure the advantage of the two
sides.” The customs agreement mentioned has not yet been concluded.
(f) Commercial Treaty Relations with other States.
Since the lifting of the ban on Soviet products early in 1933, equal treatment
has been accorded to all States trading with Saudi Arabia.
A commercial treaty has been signed with Italy (Jedda, the 10th Febuarv
1932) stipulating most-favoured-nation treatment for vessels, merchandise and
fishing boats of either nation, the last with reference to Eritrea.
A “Provisional Agreement,'* concerning reciprocal most-favoured-nation
rights, was signed with the United States in London on the 7th November, 1933
Treaties of friendship, including most-favoured-nation clauses, have been
concluded with Germany (Cairo, the 26th April, 1929) and France (Jedda. the
10th November, 1931, ratified the 24th June, 1932).
Treaties embodying a clause signifying the desire of the contracting parties
to conclude at some future date a commercial treaty have been signed with Turkey
(Mecca, the 3rd August, 1929) and Persia (Tehran, the 23rd August, 1929).
Additional to the above, Saudi Arabia is in general treaty relations with
Great Britain (Jedda, the 20th May, 1927) and Afghanistan (Mecca, the 5th May,
1932, ratifications exchanged the 1st April, 1934).
Soviet Russia and the Netherlands are in relations with Saudi Arabia and
maintain representatives at Jedda without having concluded formal treaties.
Egypt and Belgium maintain consular representatives at Jedda, the former
without having formally recognised the present regime. Czechoslovakia is
represented at Jedda by an honorary consul of Saudi nationality.
[Note. —Since this report was drawn up, a treaty between Egypt and Saudi
Arabia has been signed (the 7th May, 1936) at Cairo.* Article 5 provides for the
co-operation of the Egyptian Government in carrying out certain works of
repairs, &c., in respect of the Holy Places of Mecca and Medina, in regard to
roads used by pilgrims, &c. Article 6 provides for early negotiation of customs,
postal and navigation agreements.]
IV.— Finance.
(a) Review of the Years 1926-35.
Economic development is entirely dependent on the length of the Saudi purse,
as the Government is seldom in a position to meet more than one or two seemingly
necessary payments at once. No statistics are published, or it is believed,
compiled. No budget has been published, except in January 1932, when an
estimate of expenditure by various departments in the Hejaz was printed, but
without indication of estimated revenue. It is therefore only possible to judge
the state of the country’s finance by rough estimation and the attitude of the
Government to their larger debts.
\\ hen in 1923 the subsidy which His Majesty’s Government had paid to
ibn baud since 1917 ceased, Xejd was left a poor country able to exist as it had
one through the ages by petty trading and, when things w^ere bad, by raiding
ai ? • ^Hare but without means to pay for western machines, arms and cars to
which the influx of money during the Great War had accustomed the northern
Fi 11 S °h tu penmsu f’ ^. Pe ^' e j az 5 on the other hand, was comparatively wealthy
through the proceeds of the annual pilgrimage to Mecca, and might have
prospered under more enlightened rule than that of King Hussein It was
therefore to the Hejaz that King Abdul Aziz looked for revenue once the two
States were uni ed under his rule. On his election as King of the Heiaz in 1926.
he assumed control of the military forces of the country and assured the safetv
l l l ro Ai.s.f'r.h"'‘Ms 5 “c««r *■“
mum sol, I in hi. capacity of Kin, ,„d Comm.nde “n-S ihich” «
approximately the amount of the subsidy p ai d him from 1917 to 1M2 bv His
Majesty s Government. ^ ^
But even with the conquest of the Heiaz, finanop ^ n i •
In Nejd the war had to be paid for by distributions to the tribes 'in'the^Heia?
the new broom was sweeping clean and requiring money. There were ne«
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