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File XXXII/12 '1. Finances. 2. Customs Duties (Sur). 3. Financial Crisis, 1931. 4. Treaties with France and America' [‎66v] (137/266)

The record is made up of 1 file (129 folios). It was created in 18 Dec 1928-31 Dec 1930. It was written in English and Arabic. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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s
as can be judged, French interests are now negligible, and,' although a
French Consulate is still maintained, it has had no incumbent for some
years. United States interests in Muscat have, at any rate since the end
of the war, been in charge of 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. , and, while it would
appear from the Department of Overseas Trade report of 1929 on economic
conditions in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. that there is a regular trade between the
United States and Muscat, it is in itself of little importance, and has
shown a marked decrease in the last three years. There is no indication
of any connection between Muscat and the Netherlands, and the commercial
agreement of 1877 between the two countries in any case provides for the
grant of most-favoured-nation treatment only.
3. Mr. Secretary Benn is in complete agreement with the Government
of India as to the importance, especially in view of the development of air
communications in the Gulf, and of the reassertion of Persian authority
on the Persian littoral, of maintaining the stability of the Muscat State,
and he is impressed by the unanimity with which expert opinion urges
the impossibility of securing this without some improvement in the
financial position. Despite the presence of an experienced European
Finance Minister, this has shown no improvement of late years. The
budget estimates for 1929 record a decrease on actuals in the principal
source of revenue (customs) of Rs. .1.39,000 between 1925 and 1928 in a
total budget of some Rs. 30 lakhs One lakh is equal to one hundred thousand rupees ; no new sources of revenue are
apparently in view ; and, while the liquidation in 1932 of the liabilities of
the State to the Government of India will release a sum of some Rs. 43.000
ner annum for general purposes, the effect of this cannot be considerable.
Some improvement might result from the consolidation of the Sultan’s
authority at Sur and the imposition there of an effective customs regime.
On this the Secretary of State is consulting the Government of India ;
but the question presents difficulties of its own, and even should these be
surmounted, it would probably be some time before anv material increase
in revenue from this source could be secured. It seems clear, in the cir-
cumstances, that it is only on the lines now proposed by the Government
ot India that the situation can be satisfactorily eased.
le importance of early action is emphasised bv recent corres-
ponnence, which indicates that the Sultan has renewed his threat to
abdicate in the near future. It is extremely desirable on general ground"
that he should continue to govern, at any rate until the heir apparent is
older and has gamed sufficient practical experience. It seems probable
that much less difficulty would be experienced in dissuading His Highness
from abdication, if it should prove practicable to ease his financial position
by the adoption of the proposals now under consideration [compare para-
graph of the letter from the Muscat Finance Minister Annex, re
to Sorml OU enclosed with India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. letter of 30th April P 3P>91
-91. From a different standpoint, it will bo remembered ('comnare rvn-n-
graphs 20—32 of the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. memorandum') that the arms traffic
subsidy of Rs. 1 lakh One lakh is equal to one hundred thousand rupees , which has been paid since 1912 in return for the co
nnotation of the ruler of Muscat in the suppression of the illicit traffic in
t)Tl%r P1 T Ti^ th ? y'T of P° wer h.Y «>e present Sultan. Moreover
the latter, should he abdicate, would as the Government of India point out’
expect to receive an allowance commensurate with his dignitv. The effect
on Muscat finances of the loss of the arms traffic subsidy coupled with the
imposition of an allowance for an c.r-Sultan, would elen'rly be verv serious
, 5 ; J n view of the desirability of early action, one possible course
might he to increase the import duties as suggested, excent in resnTct of
goods covered by the provisions of the treaties with tl,,, rr ? ' .
America, France and the Netherlands It appears tl af t ' 8 i<teS of
si?z sST,r.„ < si 1 sia ,, v h i" s ejsar»
materially the realisation o( an increased custemreS™

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Content

This file contains correspondence between British officials (primarily at the Political Agency An office of the East India Company and, later, of the British Raj, headed by an agent. in Muscat, the Political 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. in Bushire and the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. in London) concerning economic problems in the Sultanate of Muscat and the consequent need to raise its customs tariffs in order to increase state revenue. Much of the correspondence relates to potential issues that this proposed increase could cause with the United States of America and France due to treaties those two countries previously agreed with the Sultan of Muscat.

In addition to internal correspondence between British officials, the file also contains a limited amount of correspondence with US and French diplomats and one letter in Arabic (with English translation) from the Sultan of Muscat, Taymūr bin Fayṣal bin Turkī Āl Bū Sa‘īd(folios 52-53).

In addition to correspondence, the file contains the following documents:

  • 'Note on the Financial Aspect of Our Policy [in Muscat]' 1928 (folios 5-6)
  • 'List of the monthly allowances paid by the Muscat Govt. to the Frontier Shaikhs. 1927' (folio 48)
  • Draft revised treaty between the United States of America and the Sultan of Muscat (folios 120-121).
Extent and format
1 file (129 folios)
Arrangement

The papers are arranged in approximate chronological order from the front to the rear of the file.

Physical characteristics

Foliation: the foliation sequence (used for referencing) commences at the inside front cover with 1, and terminates at the inside back cover with 131; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. An additional foliation sequence is present in parallel between ff 5-128; these numbers are also written in pencil, but are not circled.A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.

Written in
English and Arabic in Latin and Arabic script
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File XXXII/12 '1. Finances. 2. Customs Duties (Sur). 3. Financial Crisis, 1931. 4. Treaties with France and America' [‎66v] (137/266), British Library: India Office Records and Private Papers, IOR/R/15/6/49, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100063310110.0x00008a> [accessed 28 March 2024]

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