'Administration Report of the Persian Gulf for the Year 1936' [‎4r] (7/74)

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REVIEW.
ARAB SIDE.
RETROSPECT, 1926—1936.
The Arab side of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. has shown so many changes of late
that it may be of interest to give a picture of it 10 years ago and as it is
now. A decade ago there was no Air Route on the Arab side (Imperial
Airways had just reached the Gulf but were operating along the Persian
Coast), no oil had been discovered in that area, and the Naval Base for the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. Division was at Henjam in Persian territorial waters. Iraq
"was still a Mandate under British control and there were no Kuwaiti-Iraqi
problems of much importance. His Majesty King Abdul Aziz was still
busy consolidating his conquest of the Hedjaz, and nearer home in Nejd
was engaged in promoting the Akhwan movement and forming Akhwan
colonies. Saudi Arabia in fact had little concern with the Arab Shaikh-
doms of the Gulf.
t , Nowadays the Imperial Airways route to India and beyond lies along
the Arab Coast, and several overland routes from Europe to the East by
air, tram and car, which have been opened up through the Middle Fast
connect wUh the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. . There is a large anfflour ^hing oilfield
at Bahrain, others at Kuwait and Qatar which are being explored bv the
Companies concerned, and still other potential fields on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates.
and in Muscat which are the subject of negotiations. In this connection
he construction of a refinery by the Bahrain Petroleum Companv in Bah
rain which will be in full operation before the end of 1937, is a matter of
consideraWe importance since our present supply of oil from the Persian
Gulf is in a foreign country, e.g., Iran. In ca^e of war, with Iran neutral
the supply of oil from this source might be difficult, and with Iran hostile
it might cease altogether, at any rate for a time. When the Bahrain refin
ery is working, even under peace conditions the Sloops of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran.
IJivision will be able if it is so desired, to procure their oil at their base
in Bahrain instead of from Abadan. Amongst other results of oil develop
ment is a startling increase of foreign population at Bahrain, where a
decade ago there were some dozen Europeans and where there are now
something like 300 Europeans and Americans. It is a point of some
importance that the concessions granted by the Shaikhs to the Oil Com
panies contain a clause that preference, whenever technically possible
should be given to British subjects. Many of these, includinn- British
Indians, are actually employed at Bahrain (for present figures see Oil
Interests 1936 below), and as the new oilfields develop, will be employed in
increasing numbers. The Naval Base is now also at Bahrain with a subsi
diary base at Khor Kuwai in Muscat territory. Iraq is an Independent
State and many important Iraqi-Kuwaiti problems have arisen. King
Abdul Aziz has consolidated his Saudi Kingdom, which has caused him to
look towards the Gulf for further expansion. The discovery of oil in the
Arab Shaikhdoms has increased his ambitions in this direction, and, in
regard to the Trucial Shaikhdoms, whose frontiers with those of Saudi
Arabia have never been delimitated, has given rise to long and complicated
negotiations. At Kuwait there is the vexed question of the Saudi trade
blockade, and with Bahrain until recently, when they were settled certain
questions of transit dues on goods to Saudi Arabia.
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46(C) ExAffairsDept