Coll 30/9 'Persian Gulf: Administration Reports 1926-1938' [‎70v] (145/1028)

Imam. A more likely reason, as has been reported, is that the financial
condition of the Imam is not very prosperous owing to a serious decline in
his revenues consequent upon the heavy fall in the price of dates, on the export
of which the prosperity of the Oman almost entirely depends. The news of
the oil concession recently granted by the Sultan to Petroleum Concessions
Limited has, it is believed, penetrated throughout the State and it is quite
probable that Shaikh Tsa’s visit was connected with the object of sharing in
the spoils the extent of which has no doubt been exaggerated in proportion
to the distance the news has travelled. Though the Sultan denied that any
oil matters were referred to by Shaikh Tsa the latter did not altogether fail
in what was in all probability the real reason of his trip from the interior—-
financial assistance—as the Sultan admitted ruefully that the visit which
lasted less than a week, cost him in presents and entertainment well over
Rs. 4,000.
At this price the Sultan declared he preferred not to have further visits
from Shaikh Tsa for some years to come.
That the situation in the Oman is in a state of flux appears fairly certain
but whether this visit of the leading personage therein to the excommuni
cated nominal Ruler of the country means the beginning of the break up of
the Imam’s authority and control over the tribes of the interior, which the
Sultan has declared in so many words he believes to be happenincq is another
and more dubious matter and which time alone will clear up.
(b) The 1891 Treaty of Commerce, Friendship and Navigation between
His Majesty’s Government and the Sultan was renewed on its due date 11th
February.
In March the Sultan in accordance with Article 23 of the Treaty gave
notice of his desire to revise the Treaty and 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. was appointed
to act as negotiator on behalf of His Majesty’s Government. After a number
of discussions the Sultan’s draft for the revised Treaty was completed and in
October forwarded to the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. for submission to His Majestv’s
Government. J ^
The Sultan has put forward many important proposals in his draft
Treaty in which complete fiscal and tariff autonomy is claimed The
important privilege of extra territoriality enjoyed by British subjects under
the existing Treaty is, however, left untouched in the new Treaty.
5. Oil Concession.—In June the Sultan with the approval of His Maiestv’s
Government commenced negotiations for an Oil Concession for his State with
Petroleum Concessions Limited, a company principally British in composi
tion, whose registered dffice is in London. After less than 3 weeks negotia
tions which is probably a record for celerity in such a matter and which was
due in considerable measure to the ability and skill of the negotiator repre
senting the Company, Mr. B. J. Lermite, the Sultan signed an agreement
giving the exclusive right to prospect for and exploit oil in his Arabian terri-
tones to Petroleum Concessions Limited. The Concession was in two Parts
K, ont irs, 0 ' I, “* r “ d (41 "» Ik-
I^endaveof Gwadur, a small dependency of Muscat State situated on
the < 0 ' lst °f British Baluchistan, was not included in the above concessions
for C this area“ mPany ^ ^ interested in and consequently did not apply
-uuuiunti masters lorm tHe subject
/. 1 rade. Imports and exports during the year 1936-37 showed a sh>?
■i”" i E
Year.
Imports. Exports.
1935- 36. .... ‘ n Rs ' Rs '
1936- 37 38,37,835 32,64,94§
rpi 44,65,861 32,41,641
diied fish P whils P t a mnor f 6 T7 continued to be dry and wet dates an
sugar, spiels win^nd hq^ors 7 ° f ^ fl ° Ur ’ C ° ffee ’ “