"ملف 61/11 IV (D 77) مسائل متنوعة خاصة بالحجاز ونجد" [ظ‎‎٨‎٣] (٣٦٦/١٧٦)

Persian Gulf, and said I hoped the visit could be arranged if the King was staying
some months in I\ejd. I added that 1 could not suggest anything definite at the
moment, as Colonel Biscoe had been ill, and had, 1 believed, left for Kngland.
14. I was about to leave, but the King detained me. He said he did not
want to do anything behind my back. He had not consulted his advisers about
what he was going to say, but he had made up his mind to say it, whatever they
might think. It was a question of the financial position. This had two aspects.
The first was the exchange situation, which turned on two factors—riyals and
nickel. Steps had been taken to gather in nickel, and it had been rehabilitated.
As for riyals, His Majesty intended to bring them into legal circulation throughout
all his dominions, and this would produce relief, as the quantity of silver money
was not excessive and an extended use would suffice to revalorise it. The other
question was that of banking arrangements. There had been an arrangement
with the Dutch Bank, which had broken down on questions between its repre
sentatives here and their principals. The King said he would like to find another
bank, which under suitable arrangements would serve the purposes of a State
bank. He would prefer a British institution. He sought my advice and that of
His Majesty's Government.
15. I said that my personal opinion would have no value, as 1 knew too little
of the machinery of banking. I would willingly consult His Majesty's Govern
ment. T hinted that I thought it would be difficult to find a British bank, but
did not exclude the possibility of interesting firms like Barclays, who were in the
Red Sea, or Lloyds, who were in Egypt.
16. The King said what he wanted to know was whether he might or might
not hope for a British bank, and whether any firm who was interested would send
a representative. The matter was of some urgency, as he had received offers from
other quarters. 1 said 1 had heard various reports. T had heard, for instance,
of a plan to authorise an Indian Moslem bank to establish itself here, although
it had been represented to me as an idea conceived with a view to the convenience
of pilgrims rather than with the more general purpose the King had indicated.
This was a feeler, in case His Majesty should feel inclined to say something about
the other advances made to him. He did not, however, respond.
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