'File 19/176 III (C 51) Bahrain Finances' [‎147r] (309/687)

believe that any effort at bringing cargo direct from
India to a mainland port will not prove successful in
the long run: and I would here remakk that the recent
decision of the ^nglo Persian Oil Co. at ixbatian to
send their small steamer^ t Khuzistan , to the mainland
ports to sell oil etc., is an error; since the Company
will not sell any more oil than it does at present'by
transhipment in Bahrain, but, on the other nand will
expose its steamer to extra working expense, and take
away some employment from some mainland and local
native craft.
In my report for 1350, I alluded to the difficult
P9sition existing here arising from the question of the
dire9t transhipment of cargo in this port. The position
remained of minor importance for several years until
several factors; mainly the growing self-consciousness
of the Hejdy merchants, the high freight rates charged
by the B.I.S.N.Co. Ltd. ? (which company has practically
the monopoly of the India- Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. " cargo traffic)
and the falling prices of Indian commodities notably
cereals, made the Nejdy merchants closely consider the
amount of the expenses they ?/ere paying, in view of the
feneral business depression, on the cereals taken hence
othe mainland ports. These expenses included the
shipping expenses from India and the Bahrain expenses
on re-export.
In Bahrain the rate of Khanchia per bag had been
fixed at three annas; but after carefully considering
the positi9n the Bahrain government decided to reduce
this rate in regard to re-exported bag cargo to ks 6/~
per hundred bags.
An attempt to force down the B#I. rates had Dre-
viously been made by a local Hindu merchant, who had
brought here a ship-load of rice and sugar from Cal
cutta in a Norwegian craft; but this action did not
lead to a general permanent re "uction of freight rates
by the Company.
Probably with this fact in mind, a Karachi shitmer
of rice (whose shipments are sold on the mainland on a
commission basis only) demanded special rates from the
B.I.S.N.Co. Ltd., under the threat that he would des
patch all future shipments by native craft direct to
the mainland, or possibly charter a special steamer
for his o?m purchases. After considerable discussion
and correspondence it was decided to affirm the ri ht
of the Bahrain government to collect two per cent ad
valorem upon all cargo transhipped within the port
limits; and the B.I.S.N.Co. made a gesture by reducing
its freight rate temporarily in order to compete with
a second special shipment of cargo from Calcutta to
Bahrain arrange?by ahovo Hindu merchant. This ship
ment came forward on s.s."Fagervick" a Norwegian vessel
which arrived here on 1st Raba al Thany 1351 (3rd Aug.
1932) with 24,176 packages of rice tea and coffee.
In the meanwhile the Karachi shipper, Hajy Hassan
bin Murzook, had promised H. B. M f s Political .igent
that he would make no direct shipments thence to the
mainland of ArabiGuan consideration of a reduction in
the freight rate, and also if the Bahrain government