Coll 6/9 'Jeddah Reports Jany 1931–' [‎352r] (704/802)

September, to return to Taif. There they remained until Tuad Bey again visited
Jedda on the 29th October. In a private conversation on the 31st he unburdened
himself to Mr. Hope Gill of his cares and fears for the future of this country.
Finance.
12. The silver rival fell two more points in mid-September to 17 to the
gold pound. The official rate still stood at 10, however, which enabled the
Government to pay at 10 whenever they did pay, which was seldom, and to take,
which they often did, at 17. But for the fact that large numbers of riyals were
withdrawn from currency in the Hejaz, probably for use in Nejd, the exchange
must have fallen considerably lower. The export of gold, except by special
Government licence, was forbidden by decree of the 16th October.
13. External credit was still nil. British banks had declined to accept
Sheikh Abdurrahman Qusaibi's proposal to open a State Bank in the He jaz (July-
August report, paragraph 8) The Nederlandische Handel-Maatschappij also
turned down his proposal that they should lend Ibn Saud half a million sterling
{ibid., paragraph 9). Internal loans were therefore extracted by the Director-
General of Finance wherever he went in the Hejaz, and by means which have
already been described in the preceding paragraphs. Very little was written
down. Accounts were kept in Abdullah Suleiman's head, which his creditors
hoped no longer to see upon his shoulders when the day of reckoning should
come. Poverty bred barter. When their benzine was so urgently sought,
Messrs. Gellatly, Hankey and Co. were offered rice and raisins in exchange.
The Ministry for Foreign Affairs never has had a bank balance, but is used to
make its diverse payments to the Legation, in respect of small claims and minor
routine adjustments, such as telegrams, in mixed currency tied up in scraps of
old garments. When even this ceased, the Legation's accountant saw nothing
for it but to expect payment in goods, three cakes of soap and a leg of mutton, for
instance. But the Ministry maintained caste and paid nothing.
14. The anxiously awaited Soviet benzine (July-August report, para-
graph 10) did not materialise until the 20th October, when a Greek five-masted
schooner brought 30,000 cases. Contrary to the previous report {ibidem), the
Soviet Charge d'Affaires has now stated that payment is not due until six months
after each consignment's delivery, when it would be due integrally. He hopes to
have no difficulty.
15. No external debt was reduced during September and October, except
for a surprise payment of £500 to the Eastern Telegraph Company on the
26th October. This appeared to result from certain written representations
made by His Majesty's Charge d'Affaires personally to Fuad Bey Hamza on the
14th October and from the absence of Abdullah Suleiman in Nejd. The balance
was promised “ in a few days, God willing." The Deity has much to answer
for in the Hejaz. The balance at the end of October amounted to something
over £2,500.
Economic Development.
16. Work continued in desultory fashion during September and October on
the Waziria wells outside Jedda, and the Turkish aqueduct which connects them
with the town. The present wells were built by Osman Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. , ruler of the
Ottoman Hejaz, in 1882-86, but the springs were first exploited for the benefit
of Jedda in about 1640. The Turkish system was primitive, and had already
lapsed into decay early in the present century. It is now to be repaired,
modernised, and donated with a windmill pump from Ohio (111.).
17. Mr. Twitched returned from America on the 19th October, bringing
with him the pump, a hand-drill, and a prospecting engineer from Arizona. No
serious work was begun until November.
Marconi Wireless Installation.
18. There is nothing definite to report. Even Mr. Philby, Marconi's agent,
is vague as to what has been happening beyond the fact that the September and
October instalments of payment fell into line of arrear with their predecessors
(July-August report, paragraph 14). M. Boucicault is believed to have
[6350] b 3