"ملف 61/11 V (D 95) مسائل متنوعة خاصة بالحجاز ونجد" [و‎‎١‎١‎٧] (٥٣٠/٢٥٠)

THIS DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY'S GOVERNMENT
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EASTERN ( A rabia ). VyttgSjj!?? March 21, 1933.
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CONFIDENTIAL. S ections.
[E 1491/234/25] No. 1.
>SzV ^4. Ryan to Sir John Simon.—{Received March 21.)
(No. 69. Very Confidential.)
Sir, Jedda, February 28, 1933.
WITH reference to my despatch No. 30 of the 21st January relative to the
arrival in this country of Abdul Hamid Shedid, an agent of the ex-Khedive of
Egypt, I have the honour to state that this gentleman appears to have made
considerable progress with his negotiations with the Saudi Government, and is
understood to be leaving Jedda to-morrow to report to Abbas Hilmi Pasha.
2. I am credibly informed that an agreement has been reached,
ad referendum, in the case of the ex-Khedive's representative, and, perhaps, in
that of the Saudi negotiators also, for the creation of a national bank here with a
capital of £1 million gold. It is stated that the ex-Khedive will provide half this
amount, that the Saudi Government will be technically entitled to subscribe
£250,000, and that the remainder will be offered for public subscription in the
Hejaz. It is suggested that the Saudi Government will not, in fact, subscribe, and
that the ex-Khedive has in view another source for the £250,000 which they are
entitled to put up. It is further stated that the promoters will lend the Govern
ment £200,000. The bank will operate as the State bank, receiving all revenue
collected by the Government. It will be authorised to issue notes, but it is not
clear that these notes will be brought into compulsory use at the outset.
3. I cannot discover what, if any, economic concessions have been promised
to the ex-Khedive. It may be noted in this connexion that the Saudi Government
appear to be in negotiation with other interests regarding concessions, notably
for the exploitation of oil and gold. In these circumstances I am greatly at a
loss to understand where Abbas Hilmi Pasha and his associates hope to make their
profit. It has been suggested that, if they can get favourable terms regarding
cover for note issue and succeed in bringing the issue into general use (which can
hardly be done without making the notes the only legal currency in the near
future), they may hope to draw substantial quantities of gold and silver out of
the country. This might be a profitable once-for-all transaction, but it seems
inadequate as a basis for permanent business. As for ordinary banking business,
I imagine that it will be uphill work to develop it on a profitable scale, even with
the support of the Government, in competition with the Netherlands Trading
Society and Messrs. Gellatly, Hankey and Co., both of whom do regular banking
and have extensive foreign connexions, as well as with the numerous local firms,
who do banking of a sort on their own account as a side-line.
4. The enterprise looks on the face of it so dubious as finance that one is
tempted to look for political motives on the part of the ex-Khedive. I confess
that here again I am nonplussed. If, as some think, he aspires to the Throne of
Syria, I cannot see that Ibn Saud's influence would be of much value to him. If,
as others suggest, he aspires to the Caliphate, it would be to my mind impossible
for Ibn Saud to associate himself with such a pretension. It is barely conceivable
that the ex-Khedive may be counting on the decline of Ibn Saud and on being
able to establish a "cinch" on the Hejaz. I enumerate these possibilities or
impossibilities merely in order to explore this aspect of the subject as fully as I
can. When I was recently in Cairo I found Sir Percy Loraine distinctly sceptical
about the political ambitions attributed in various quarters to Abbas Hilmi Pasha.
5. It is said that the promoters hope to rush the project through in time to
start business on the 1st April, and to make something out of this year's
pilgrimage.
6. I have based the foregoing summary on a mass of more detailed informa
tion. As it is mostly derived from sources which I do not wish to compromise, I
would ask you to regard the whole of this despatch as highly confidential. If the
scheme materialises in the near future, it will have to be made public.
[739 x—3]