"ملف 8/15 سلسلة الجزيرة العربية - ١٩٣٣-١٩٣٩" [ظ‎‎١‎٣‎٥] (٤٣٤/٢٧٠)

43
(65)
Memorandum No. 84 (1486/236/19), dated the 14th August 1936.
His Majesty’s Charge d’Affaires at Jedda, presents his compliments to
H. E. the Viceroy of India (F. and P.), Simla, and has the honour to trans
mit to him a copy of the despatch to the Foreign Office, No. 246 of 14th
August 1936, relating to Saudi Currency.
Enclosure to Serial No. (65).
Letter from the British Legation, Jedda, to the Foreign Office, No.
246 (1484/236/19), dated the 14th August 1936.
With reference to Sir Andrew Ryan’s despatch No. 95-E., of March
29th last, I have the honour to report certain further developments in the
currency situation in Saudi Arabia.
2 . 500,000 new riyals arrived early in May and some appeared in cir
culation almost immediately. The Government have, however, shown great
caution in introducing the new currency and to this caution, accord
ing to an official of the Jeddah branch of the Dutch banking concern,
the Nederlandache Handels Maatschappij, mav be attributed the
present comparative stability of the riyal, both in relation to the gold pound
and to the Egyptian paper pound. It is also stated that the Government
are resolved to maintain the present rate of 20 riyals to the gold pound,
but whether this will be possible when the pilgrim season creates an added
demand for local currency may well be conjectured.
3. Up to date only two new half and no new quarter riyal pieces have
passed through the hands of the Legation accounting officer, although
according to a notice which appeared in the newspaper “Saut-ul-Heiaz"
on June 23rd, the old half and quarter pieces ceased to be legal tender on
that date but could be exchanged against gold, at standard rate, if present
ed at the Ministry ofTTnance within two months. The reason given for
this order was the risk of confusion between the old half riyals and the new
riyals, as the latter are only a little larger than the former.
4. The authorities seem to have been fairly successful in their attempt
to withdraw the old’currency as two large shipments to London have been
made recently through Messrs. Collatly, Hankey & Co. (Sudan) Ltd. On
July 29th, 250.000 and on August 5tli, 125,000 riyals were despatched bv
Khedivial Mail steamer. A certain number of one riyal pieces were, I
understand, included in the second shipment.
5 . I am sending a copy of this despatch to the Deoartment of Over
sea Trade, Government of India (Foreign and Political Department) and
Cairo.
( 66 )
Enclosure in Admiralty covering letter No. M.-03884/36, dated the 25th
August, 1936.
Extracts from a Report of Proceedings of H. M. S. Londonderry
covering the period 30th May— 29th June.
Hodeida. 2nd to 5th June.
4. Soon after our arrival, Mr. Saleh Jaffar, M.B.E., the political
clerk, accompanied by the General Officer Commanding, Hodeida; Captain
of the Port and one of the Governor’s suite, called on board.