مجموعة ٣٠/ ٢٢٤ "ترتيبات العملة في المشيخات العربية في الخليج الفارسي." [و‎‎١‎٩] (١٥٧/٤٥)

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l’ ,, -\ 1r In copter IV Mr. Waight discusses exchange
+ k ' i' L JP ^ ne ^ eiislc -n Gulf and it is very gratifvine
p° n° te tha t he is of opinion that the Political J 1o
E esiaent and the Political agents are performing their
functions in this matter satisfactorily. I an^also
ver y Slad to see that he appreciates the services
rendered by the banks. I have had to use the managers
ol the banks, particularly.Mr. Grant of the Eastern°
5 b' -financial advisers and I have always found
them most impartial in the advice they have given me
and most co-operative in every way.
l c * . . ^ 1 ara rather surprised to learn of the manner
in which the customs dues at Ku\ ait are divided 5 vide
the footnote to paragraph III(a) of Chapter IV, and
am taking steps to verify kr. height's information.
H• > I agree v/ith what hr. height has to say about
the Arabian American Oil Company's request for conversion
of their rupee balance with the Eastern Bank, Bahrain,
the T.h.A. rupee balance and dollar accounts. V/ith.
regard to the second of these items, the latest develop
ment is that T.Vi.A. have applied for a sterling remitt
ance^ against their rupee balance here to the Irish
Republic to enable them to meet their expenses at Shannon
Airport. This means that they will be able to avoid the
necessity of using convertible sterling standing to' their
credit in the United Kingdom for meeting these expenses.
Although in the long run this amounts to the same thing
as permitting them to convert their rupee balance into
dollars here, it is difficult to see how this request can
be refused. I am reporting the matter separately.
12. hr. Weight's suggestion in his remarks regard
ing the repatriation of rupee notes to India and Pakistan
and gold transactions, that Inuia should be encouraged
to refuse large repatriations of notes from the Gulf causes
me some -anxiety as if it is adopted it might lead /to a
substantial depreciation in the value of the Indian rupee
locally.
13. In chapter V Mr. Waight discusses miscellaneous
items. I fully agree with what he says about Pakistan
currency and v:ould only add that after I had replied to
the Pakistan Government warmly welcoming their proposal to
send a representative of the btate Bank of Pakistan for
discussions I heara from them that the visit had been
cancelled. The appointment of a Financial-Commercial
Secretary to the Political Resident has I understand been
accepted by you in principle and Treasury sanction has been
applied for/ In the circumstances, no further discussion
of this proposal'is required. I am not quite sure, however,
that I told*Mr• Waight "that Iwas of the opinion that the
tendering of advice to the Shaikh oi Kuwait oy a financial
Secretary to this Residency voulu have very nearly the
same result as the appointment of a whole-time financial
adviser. The latter, if he were permitted to function
properly and his advice were accepted, would play a.much
more active part in local development than a i-'inancio.l
Secretary to the political Resident. i nope, ev-r,
that the Secretary v.’hen he has had some experience may be
able to obtain the Shaikh's confidence ana persuade nim to
ecc^pt his advice to some extent regarding investments ana
expenditure and that in due course he ay be able to induce
him to employ some kind of British financial exp^x t.
/With regard