مجموعة ٣٠/ ٢٢٤ "ترتيبات العملة في المشيخات العربية في الخليج الفارسي." [ظ‎‎٤‎٠] (١٥٧/٨٨)

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Chapter II
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GiiAPTSK VI
^unynar/ of conclusions and recoraoeadalions
internal Currency position in the gulf States*
The existing currency position no longer satisfies, g
It would be dangerous to establish the Indian rupee
as the official currency in the Gulf.
It would be equally dangerous to leave currency
matters as they are bearing in mind the existing
anomalies.
A new currency for the Gulf States .
The Indian rupee should be displaced as soon as
possible.
There should be established in place of the Indian
Rupee, a Gulf Rupee for use in all Sheikhdoms. The
Oulf Rupee to be bac ed by sterling and to have a
value of 1 / 6 d. and to be divided into 100 parts.
A note issue to be managed by a Currency Board in
London. For the present Indian coinage to continue.
Special steps should be taxen to counter the expected
opposition of the jirab merchants to the displacement
of the Indian Rupee.
Utilisation of Surplus Funds of the 3ulf States.
In the &.K. a s a whole , there is a very great need
for funds foF capital development. * At the same
time there is vast wealth accruing to part of the
ar*ea through oil production.
It would seem logical to estaclish a link so that
surplus wealth countries or Sheikhdoms could with
safety lend to countries needing capital for
development purposes.
Bahrein has an invested Reserve F md and is unlikely
to be in receipt of an income on royalties on such
a scale as to warrant investment in Sr i*iiddle Best
Corporation.
Kuwait already has liquid resources far in excess
of the economic needs of Kuwait. These resouces
will be augmented rapidly during the immediate years ,
ahead.
The Sheikh of Kuwait is not at present readily
susceptible to British advice and until this can be
remedied an appioaoh to him regarding the investment
of hie surplus funds is likely to be viewed with
suspicion.
The over-all surpluses of the Sheikhdoms should be
preserved as capital in one form or another. Priority
in expenditure of capital should be given to sound
economic projects within the Sheikhdom judged likely
oo produce permanent revenue as an alternative to
oil royalties which may fail for one reason or
another.