"تعرفة مسقط" [ظ‎‎١‎٩‎٥] (٤٢٢/٣٩٩)

(2)
ill
Letter to the Secretary, Political Department, India O ffice , London,
No. P. 225-N., dated the 4th september 1929.
I am directed to refer to the correspondence ending with the letter
No. 94-S. of 1929, dated the 2nd April, from the Hon'ble the Political
Resident in the Persian Gulf and enclosure [Serial No. (1)], of which a
copy was forwarded to II. M. 's Secretary of State for India, on the sub
ject of the finances of Muscat.
2. From the papers forwarded to His Majesty's Secretary of State
with Foreign Secretary's letters Nos. 78-M. and 31-M., dated the 27th
September 1923 and 17th April 1924, respectively [Serial Nos. (2) and (14)
in File No. 749-X j23], it will be seen that in 1924 a similar proposal to that
now made by the Political Resident for the raising of the tariff was not
adopted by the (xovernment of India, though they implied their prepared
ness to entertain it in the last resort. Their reason was the anticipated
difficulty with France and the United States of America in connection
with the commercial treaties, guaranteeing the 5 per cent, maximum rate,
between those countries and Muscat.
3. Muscat affairs have of late shown a tendency to deteriorate. The
integrity of the state is admittedly of great importance in view of its
position at the mouth of the Persian Gulf, and the recommendation, re
newed as it is after mature consideration in view of the growing danger
of dissolution with which the kingdom is faced, seems now to call for more
careful review.
i r ^? iei ' e . se 1 ems ^ttle doubt that the present trouble in Muscat is
largely financial, and the Government of India concur with the Political
Resident that the best hope of restoring the Sultan's prestige and control
lies m a permanent strengthening of his State finances. The causes of
their present weakness are well analysed bv the Political Ao-ent The
principal causes are evidently permanent, and there is little prospect of
an unaided recovery m the normal ebb and flow of commercial prosperity
o.The tariff increase suggested as a remedy, namely from 5 per cent
to 7i per cent generally, and 15 per cent, on alcohol and cigarettes ° s
shght and if it were not for the international difficulty, there wouWseem
to be little 100m for hesitation in adopting it. The extent to wbieb
opposition from France and the Unitefl States of America is to be
c33ent e to 1 |u a dr t Tbr. Wh iV he 0o ™' ent of India are hardt
competent to ,iudge. They trust howeyer that those difficulties will not
at eTt rM'K^ tl 6 ; indeed l ! here seems reason to hope that I^erica
« least (though France may make some difficulty on political a-roimds , l
will not seriously ob.iect to a slight raising of the customs duty fSed oyer
*Telegram P., prom the Secretary of St vtp pm? txmr A r at
ECi'&i'r"- I929 -
No. Muscat™ Plels^see^my^PoL 22 ?" T) Sep , te ™ ber 4th - [Serial
lease see my Political Despatch Noyember 98,1,
'Original copy on File No. 334JN .-29. ~ '
Ao' 1 ^
m-
mm