'Muscat. Question whether a naval station could be established for use by His Majesty's ships at Khor Quwai or elsewhere in Muscat territory compatibly with the existing international agreements of His Majesty's Government'. [‎2v] (4/12)

4
a practice which gave rise to very considerable difficulty owing to the fact that
vessels so protected engaged freely in the slave trade and the arms traffic and that
they were immune from search by British vessels. In 1898 the Sultan, in connection
with the arms traffic, gave wide rights of search to the British Government over all
vessels belonging to his State and no protest was made by the French. The
situation, however, became increasingly serious with an increase in the number of
vessels flying the French flag. In 1899 the Sultan notified the French Consul that
he could not recognise French jurisdiction over Muscat subjects flying the French
flag. In 1902 H.M. Government formally protested through the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency.
against the exercise of French jurisdiction over flag holders as a breach of the
Declaration of 1862.
Decision of Hague Tribunal in the Muscat Dhows Arbitration, 1905.
18. The questions of the scope of the Anglo-French Declaration of 1862 in
relation to the issue of papers by France to subjects of the Sultan authorising them
to fly the French flag, and the effect of the holding of such papers by Muscat
subjects on the Sultan's jurisdiction were ultimately referred to the Hague Court
in 1905 by agreement between the French and British Governments. The Hague
Tribunal on 8th August 1905 ruled that while prior to the ratification of the
Cmd. 2736. Brussels Act of 1890 by France on the 2nd January 1892 the French Governmeut
had been at liberty to authorise Muscat vessels to fly the French flag, they had
ceased so to be entitled as from that date, save when the owner or fitter out of the
ship could establish that he had been considered and treated by France as a
protege prior to 1863 (a date chosen as one at which, in virtue of legislation by the
Ottoman Court and of the Franco-Moroccan Treaty of that year, the creation of new
proteges was regulated and limited); that in these circumstances the right should
not be given in any future cases, although owners of vessels which, prior to 1892,
had been authorised to fly the F'rench flag should retain this authorisation so long
as it was renewed by France to the grantee, but that the authorisation could not be
transferred to another vessel or owner, and that the flying of the French flag under
such authorisation conferred no rights on Muscat subjects as against the Sultan.
1905-1934.
19. Between 1904 and 1912 the most important matter affecting French
interests in Muscat (where France continued to endeavour to maintain her special
position) arose out of the arms traffic in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. . The arms traffic was,
up to his death in 1907, conducted by a French citizen, M. Goguyer, who lived
in Muscat, Substantial FVench manufacturing lirms were closely interested in it;
and, it being essential from the point of view of H.M. Government that an
effective check should be placed upon the trade, a question of great political
difficulty arose. The French declined various proposals made to them under
which, in return for important territorial concessions elsewhere by H.M. Govern
ment, France would abrogate her rights under her Commercial Treaty of 1844
with Muscat and the Anglo-French Declaration of 1862, thereby leaving
H.M. Government liberty of action in the Sultanate. The question was finally
settled in 1912 independently of the French authorities by the issue of a
proclamation by the Sultan prohibiting the arms traffic. H.M Government in
return gave certain compensation and guarantees to His Highness, including a
guarantee of the support necessary to dispose of objections that might be raised
by France or other Powers.
20. Great difficulty arose with France consequent on this settlement of the
arms traffic question, and it was only after long and difficult negotiations that in
P Gr. 13, early part of 1914 the French Government agreed to recognise the regulations
p. 46, §16. which had been put in force at Muscat and the right of the Sultan to amend those
regulations with the concurrence of H.M. Government. H.M. Government in return
paid £64,495 as compensation to the interested French firms.
21. In 1913, on the accession of Sultan Taimur, the French Government, who
had suggested that the two Governments should simultaneously recognise the new
ruler, were informed that while H.M. Government, as they had already indicated,
adhered to the Declaration of 1862, they had, in accordance with their usual practice,
already taken steps to recognise the de facto ruler—more especially as they under
stood that the French Consul at Muscat only awaited the receipt of instructions by
his British colleague to accord official recognition on behalf of France. No protest
was received from the French authorities.