مجموعة ٣٠/ ٢٢٤ "ترتيبات العملة في المشيخات العربية في الخليج الفارسي." [و‎‎٧‎٤] (١٥٧/١٥٥)

OFFICE OF THE HIGH COMMISS
FOR THE UNITED KINGDOM
CHAMBER OF COMMERCE BUILDING
WOOD STREET
KARACHI
/Vo-
• * : ■ i .
22nd September, 1948 m
t *
. «c
I think you should know that the newspaper "Dawn”
is the.nearest approach in Pakistan to an official organ, has been
running a campaign about alleged anti-Pakistan policy in Bahrain*
I need not bother you with all the cuttings. The following is a
brief summary.
2. On the 4th September '’Dawn" published a report to the effect
that, though local opinion had been sounded and had strongly favoured
Pakistan currency, the Political Agent in Bahrain had ordered that
official transactions should be conducted only in Indian currency.
This was described as "one more proof of Britain* s anti-Pakistan*
policyThe British Information Services took this up, and in a
letter published in "Dawn" on the following day protested that the
political agent* s order was justified by the preponderance of trade
'.with India. This produced an immediate and heated editorial re
joinder; the fact that it had been found necessary to consult local
opinion indicated, wrote "Dawn", a "sizeable" demand for Pakistan
currency, in consideration of which the two currencies should at
least have been placed on an equal footing.
Some days later, "Dawn" published a letter from three
3.
anonymous Arab merchants in Bahrain giving further "facts" with
regard to the currency issue and the general conditions prevailing
on the island. According to these merchants, the Hindus had been
indulging in an insidious campaign against Pakistan currency,
describing it as "soft currency." A meeting, they said, had been
held by the Political Agent to discuss the currency question. This
was attended by nine or ten leading merchants, of whom two were
Hindus and the rest Arabs and Pakistanis. The majority expressed a
strong preference for Pakistan currency, but Indian currency was
nevertheless adopted, and subsequent protests v/ere disregax^ded. The
letter then referred somewhat vaguely to pre-war statistics as show
ing that Pakistan had inherited the bulk of Bahrain’s trade with
undivided India. It concluded with observations about the preponder
ance of non-Muslims in the administration of the island.
4. Finally, on 17th September "Dawn" fired a further shot with
an editorial entitled "shadows over Bahrain", which opened with a
reference to Iran’s recent claims to sovereignty over the island.
This dispute, said "Dawn", might well be left to take its course, but
meanwhile the Pakistan Government should take steps to protect the
interests of Pakistan nationals against the machinations of the Hindus,
aided and aoetted by "our good friends in Whitehall". The currency
decision was again cited as evidence of anti-Pakistan bias at the
higher administrative level, and the paper affected concern over the
settlement in the island of Hindus and Bhuddists, which has apparently
been the subject of a protest by the Iranian Government, .an incidental
reference was made to oil, which was said to be "exclusively exploited
hy a British* company registered in Canada" - a mis-statement of which
I understand Burmah Shell are endeavouring to secure a correction.
5.
I have no reason to suppose that the Pakistan Government are
taking an active interest in the controversy, but it would perhaps be
as well for you to have this background information in case there
are further developments.
/ 6. I am
J.P. Gibson Esq., .,
Commonwealth Relations Office,
Whitehall,
LONDON, S.W.l