Coll 30/224 'Currency Arrangements in the Arab Sheikhdoms of the Persian Gulf.' [‎182r] (378/620)

£+t
• ' J82
EXCHANGE CONTROL AND IMPORT POLICY IN THE PERSIAN GULP.
Before considering the Treasury’s proposals for stricter
control of exchange in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. the following
preliminary observations seem relevantl^—
(1) . Territories within the sterling area as defined by the
Defence (Finance) Regulations, and h~c.
Exchange Control Act which came into force on
1st October 1947 includes "any British Protectorate
or Protected State".^ This definition covers all
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ShAkkdoifes but not Muscat. Strictly
speaking if Muscat is to /A be included this should be
specified in the Act. I t&ink Muscat has been
treated as administratively within the sterling area.
The consent of the rulers concerned to this
arrangement has not so far been sought, though this may
perhaps be implied, as they have^no complaints against
the operation of foreign exchange restrictions.
(2) The procedure for exchange control
exists in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. and at Muscat is briefly as
follows:-
(a) Annual quotas,,, previously expressed in weight
and now expresed in values, for the import of
essential consumer goods to Koweit, Bahrein,
the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. , Muscat and Gwadur were fixed
from the 1st January each year by the Government
of India on the recommendation of the Political
Resident. For 1947 the quotas sanctions were as
follows:-
Country of origin Name of Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. Port where goods
of goods imported
.
Knwa.it
Bahrain
Dubai
Muscat Gwadur
Total
U.S.A.
£
20,000
50,000
10,000
5,000
5,000
90,000
Canada
South American
£
10,000
25,000
5,000
2,500
2,500
45,000
countries
£
5,000
12,500
2,500
1,250
1,250
22,500
Switzerland
£
4,000
10,000
2,000
1,000
1,000
18,000
Sweden
£
6,960
10,000
2,000
1,000
1,000
20,960
Portugal
£
2,000
5,000
1,000
500
500
9,000
(b) These quotas were for the confidential information
of Political Agents who distributed them to
merchants on as wide a base as possible and
in accordance with certain equable principles^
(jtA ■ )
(c) Applications for exchange for imports from the
countries for which quotas were fixed were
—previously made^to political.Agents who forwarded
them through the Political to the Reserve
Bank of India. The Reserve Bank of India then
issued instructions to the local banks for the
release of foreign exchange recor.unended by the
Political authorities provided that these do^not
exceed the quotas sanctioned. In accordance with
the latest instructions, applications for foreign
exchange were made to Political Agents together
with documentary evidence to prove the bona-fides
/of