Coll 6/9 'Jeddah Reports Jany 1931–' [‎382r] (764/802)

such redemption to £10,000; and to the freedom with which the redeemed
riyals, &c., were thrown back on the market. The bank had sought its profit in a
high commission of 1 per cent, on foreign drafts, and had increased this to 2 per
cent. About the middle of April the prohibition on the export of gold was
relaxed, and the bank did business for a short time on the basis of selling drafts
against half gold and half silver, &c. This also broke down and the riyal again
declined, but not so seriously as might have been expected. At the end of the
month it fluctuated round rates of 11 to 12 to the £ sterling. These developments
coincided with a period when all the pilgrims had arrived and the festival season
was approaching. The centre of gravity shifted from the market for gold and
silver to that for nickel, a very important element in retail transactions. I he
bottom went out of the nickel currency market just before the pilgrimage, and the
crisis in the bazaars was accentuated by a decision of the Government on the
23rd April themselves to take nickel at the market rate. Panic conditions
prevailed for a short time. On the 30th April the authorities were contemplating
an heroic effort to bring things back to £ sterling = 10 riyals = 220 piastres.
Economic.
6. The poorness of the pilgrimage and the financial crisis have produced a
general depression in business circles. The Government are said to be exploring
the possibility of developing fresh sources of prosperity. The most definite sign
of advance in this direction has been the visit of Mr. Twitched (see paragraph 66).
The “ Umm-al-Qura ” of the 24th April contained a leading article on the King’s
solicitude for the general progress of the country, with special reference to “ Two
Great Projects,” namely, the quest for w r ater and a scheme for developing mineral
resources. Mr. Philby mentioned the latter idea in a private conversation early
in March, and suggested more recently that Mr. Twitched might also be working
on mining possibilities.
General.
7. There was again no news of any important development in the interior
during March and April. A general malaise was said to prevail in native circles
in Mecca and Jedda. Economic depression would sufficiently account for this,
were it not suggested somewhat persistently (though so vaguely that the statement
must be received with great reserve) that the position in the north is a cause of
perturbation. The apprehension among the resident .upper classes in the two
towns is described as being similar to that produced by the final struggle between
Ibn Sand and the Hashimites. The Governor of Hail, Ibn Musaad, is said to be
restive, and the eyes of some are turned anxiously to the Transjordan Used in three contexts: the geographical region to the east of the River Jordan (literally ‘across the River Jordan’); a British protectorate (1921-46); an independent political entity (1946-49) now known as Jordan frontier
area. Ad this is unsubstantiated, but cannot be ignored at a time of general
depression and uncertainty. It may be noted that among the visitors to Mecca
for the pilgrimage was Abdudah-bin-Blaihid, whose visit last year (March 1930
report, paragraph 14) was supposed to be embarrassing to the Hejazi Govern
ment, but on this occasion he seems to have attracted no special attention.
8. The dances mentioned in paragraph 9 of the report for January-
February were followed by a series of somewhat similar demonstrations during
the remaining days of the King’s stay in Jedda. Various sections of the popu
lation took it in turn to organise processions with much drumming and dancing to
the palace. This was a passing phase, but there have been minor relaxations in
other directions, a greater toleration, for instance, of music and games. Any
theory of Ibn Saud’s evolution can only be tested by experience, but evidence is
accumulating in support of the working theory suggested tentatively in
paragraph 10 of the report for January-February. If the King is definitely
working on a policy of compromise, one of the objects probably is to efface as far
as possible distinctions between Nejd and the Hejaz.
9. The failure of the Government to pay its chauffeurs' wages (January-
February report, paragraph 5) led to a deplorable incident in Mecca on or about the
26th March. The precise facts are not certain, but they are roughly as follows :
A number of discontented chauffeurs of various nationalities, headed by a Syrian,
threatened a strike, attempted to bring their grievances to the notice of the higher
authorities and apparently indulged in some molestation either of other chauffeurs
[192 d—21 b 2