'Volume II. MEMORANDA REGARDING OTHER EXTERNAL AFFAIRS. 1905.' [‎43r] (90/228)

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Hodeidah, during Military Assistant Surgeon
Vice-Consul Eichardson’s absence on leave for
six months.
PERSIAN GULP.
6. Maskat.—{Vide paragraph 12 of
Memorandum for September 1905.) The views
of the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. on the application of
the Sultan for the further loan of Rs. 20,000,
and the conditions under which the Political
Agent recommended the loan should be granted,
were received by the Government of India on
the 2nd October. Major Cox was of the opinion
that now that the consideration, no longer
held good, which had caused us to stretch
several points lately for the Sultan in order
that no monetary difficulty might arise be
tween His Highness and the British Govern
ment pending the issue of the decision of the
Hague Tribunal in the French flag case,
it was doubtful whether it was expedient
to give the Sultan any more small loans for
specific purposes for the present. They were
not sufficiently large to enable us to obtain
any suitable quid pro quo for them, and
if His Highness still persisted in spite of our
advice in allowing his finances to remain in
an unsatisfactory state, and if there were no
specific political advantage to be gained from
the loan in question, further monetary favours
on our. part w^ould tend to encourage him in
his thriftlessness. He therefore proposed that
the only basis upon wTiich he would recom
mend the grant of a loan would be :—
(1) That a trained Customs official be bor
rowed from the Government of India aud
placed at the head of the Oman Customs; and
(2) that any loan shall form part of a satis
factory An East India Company trading post. scheme for the adjustment of the
Sultan’s finances generally.
The Government of India informed Major
Cox that they approved of his view of the
situation ; and that, if the Sultan should again
mention the subject of a loan, the Political
Agent must explain to His Highness the con
ditions upon wTiich they are prepared to
lend. If the Sultan were prepared to enter
tain the idea, the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. was to
submit the scheme for the adjustment of the
Maskat finances which appeared to him to be
practicable. Until this had been considered,
no promise of pecuniary aid should, of course,
be made to His Highness.
7. {Vide paragraph 13 of Memorandum
for September 1905.) In compliance with
Secretary of State’s telegram of 29th Septem
ber last, Majors Cox and Grey were instructed
by telegram on the 3rd October to recipro
cate any advances by M. Laronce for the
settlement of any difficulties that may arise in
Oman.