'File 11/1 VI Muscat Administration Reports and related correspondence' [‎22r] (43/56)

omuggling in Gwadur continues on a large scale. The struggling of foodstuffs
is negligible, but what fetches a good profit is cigarettes. This is purch-
a.s<ja in i^ahrain or i uwait and brought dov^n here. Prom here it is sent in to
Karachi by dhows or fishing boats. In October a consignment of cigarettes
worth Rs.30,000/- was caught by the Customs authorities at Karachi and the
goods confiscated. The profit* made on each tin of fifty cigarettes is
roughly Rs.1/4 per tin. Gold is another itsaox thing which is smuggled in
large quantities from the Gulf to Gwadur and then on to Karachi either by
launch or fishing vessels, but mostly by launch. As a matter of interest T
made secret investigations as to how this is done, and the results were
rather a surprise to me. At one stage I thought my little game was up but
to ray surprise the individual showed me the gold bars which were neatly sewed
into a so-called waist coat. He told me that each waist coat was worth 3'^'
lakhs One lakh is equal to one hundred thousand rupees rupees Indian silver coin also widely used in the Persian Gulf. - there were three such coats, and I was asked to try and put
one coat on. I did, but after a great effort. I mentioned that the results
of my enquiries were rather surprising, well they were in this respect that
I discovered that one Hindu merchant, one Khauda and the Customs Amin are
involved in this racket. They are agents for a syndicate operating at Dubai
and Kuwait, and possibly Bahrain. Until September the price of gold in Kara
chi was just over Rs.ID 0 */— per tola, but the price has since dropped to about
Rs. 90/- per tola, whereas the price was between Rs. 65 /- to 75/- per tola in
the Gulf. A launch is called up from Karachi which proceeds to Dubai, coll
ects the ’haul’ and returns to Gwadur. The launch remains in port until
such time as it appears the land is clear ahead, and then she leaves for
Karachi. This is then landed at one of the two places called Boleji and
Bungalow, where a quick transhipment is made into a waiting truck. As the
price of gold has dropped in Karachi the local ’agents’ are trying to concen
trate on India where the price fluctuates at about Rs.110/- per tola. As
stated in my previous report, Gwadur is surely a ’’Smugglers Paradise” and as
the State Government rather encourages this sort of thing for the sake of
her revenue, it is not considered a crime, and nothing can be done about it.
One or two examples appear in the article attached which can be fully belie
ved. Trade, however, with Iran and Baluchistan continues. The biggest im
porters and exporters are Haji Bhacker and Rhemtullah Bashir Bandali. Frankly
no honest business is done here at all.
Education.
^5* The local Saidiya School continues with about the same number of
students as last year for the day school and night school. There has been
no further advance made to build a new school. The plan and estimate, ore-
pared by the Overseer, were sent to Muscat for approval but nothing further
has been heard since. The present school is in an awful condition and, tho
ugh minor repairs have been done, it is not a fit and healthy building for
any school. The children appear to^cramped in. It is a pity that the Local
Lrovemment takes no interest in this connexion. The school sports were run,
as usual, and the prizes were distributed by the Wali. There has been no Kkai
changes in the schools at Sur and Pishkan. In paragraph 7, page 2 of this
report, I have already mentioned about the Khoja Vernacular School which
need not be repeated, except that in my opinion their standard of education
is higher than the local Saidiya School.
Financial.
16 The devaluation of the Indian rupee and the non-devaluation of the
Pakistan rupee last year has had rather a reverse reaction this year. Rs.100/
Pakistan will buy Rs.94/- Indian according to the current market and Gulf
rate. Last year there was a clamour for Pakistan currency by the merchants
and the local Customs, actually started by the Customs demanding that currency
for duty, but this year things are different, the cry is for Indian currency/
The merchants realised that the Indian currency was the recognised currency*
in Muscat and the other Gulf ports and, as they were trading with these ports,
it was in their interest to keep to the official currency. Though this is
sensible, only Pakistan currency circulates on the local market. 7/hatever
Indian currency is available on the market is quickly bought up by the mer
chants at the current rate of exchange and sent to the Gulf where Pakistan
currency is purchased at the current market rate there. For example in Ku
wait, Rs.23,000/- Indian currency will buy Rs.25,000/- Pakistan. This money
is again
/