Coll 6/9 'Jeddah Reports Jany 1931–' [‎396r] (792/802)

Money Order Agreement with India.
33. The Indian Posts and Telegraphs Department intimated to the Hejazi
Director-General of Posts, &c., by a letter of the 31st December, their readiness
to waive the proposed claim in the Money Order Agreement regarding interest on
outstanding balances. Up to the end of February, however, the agreement was
still unconcluded owing to difficulties of pure form.
Hejaz Railway.
34. On the 6th February Sheikh Yusuf Yasin expressed a wish to discuss
on some future occasion the question of the Hejaz Railway, which had been in
abeyance for a considerable time. He did not return to the subject up to the end
of the month. His Majesty’s Government are not anxious to pursue this subject
unless it is forced upon them and I bn Saud s personal attitude is obscure, as it
is not certain how far he really wishes to raise the question or merely allows it to
be played with for the edification of Moslems.
Ihn Sand's Buying Proposals.
35. The King’s request that His Majesty's Government should act as his
intermediary for purchases in Great Britain (July—August report, section 4 (c))
was carefully considered during and after Sir A. Ryan s visit to England on
leave. The conclusions reached were embodied in a Foreign Office despatch of
the 15th January prescribing the reply to be returned. Ibn Saud was to be
informed that His Majesty’s Government could not act as buyers on his behalf,
but they expressed willingness to give advice in connexion with particular
transactions of importance, as they had done in the case of the Marconi wireless
contract (September-November report, section 5). Sir A. Ryan was to urge
upon the King the desirability of doing business through established houses.
He was given discretion to point out the advantages presented in this respect by
Messrs. Gellatly, Hankey and Co., an old-established firm with wide connexions,
and to impress on the King the importance of following sound methods as regards
punctual payment, &c., if his Government wished to do business with British
firms on favourable terms. Owing to pressure of other affairs, these instructions
had not been carried out up to the 28th February.
J
France.
36. The negotiations for a treaty between France and Hejaz-Nejd were
resumed when the Hejazi Ministry for Foreign Affairs returned to life at the
end of January. Progress appears to have been made, but both sides have been
reticent. It is partly clear that France will not insist on the slavery article
(December report, section 11). The French consulate hoped to find some way
round the difficulty over the Algerians at Medina, which is apparently not
disposed of by the new Law on Nationality (paragraph 56).
■
Italy.
37. The negotiations for a treaty between Italy and Hejaz-Nejd were also
resumed early in the year. Italy also apparently intends to abandon the slavery
article. The Italian consul spoke to Sir A. Ryan vaguely of obtaining some
substitute for it in the form of a declaration by Ibn Saud, but gave no indication
of what exactly he had in view, if anything. Otherwise there has been much
reticence about these, as about the French negotiations.
Germany.
38. The German Government apparently decided some little time ago to
make Herr de Haas (September-November report, section 18 (6)) consul at Jedda,
but he had not up to the time of writing made any communication to his future
foreign colleagues. He is without official experience, and may be having
[88 ff— 1 ] D