مجموعة ٦/ ٩ "تقارير جدة يناير ١٩٣١ -" [ظ‎‎٣‎٨‎١] (٨٠٢/٧٦٣)

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affairs, although he shows an increasing tendency to leave formal discussion of
foreign business to his Ministry for Foreign Affairs. One of his wives, who had
been in the north of the Hejaz, arrived in Jedda in March and has been installed
there permanently.
Ministry for Foreign Affairs.
2. The foreign representatives had little reason during March and April
to complain of lack of opportunity to discuss business in Jedda. Since his break
down at the end of February (January-February report, paragraph 3) the
Amir Feisal has played no apparent role in foreign affairs except that of signing
documents. Sheikh Yusuf Yasin continued to act as Under-Secretary until the
14th April, when, contrary to the expectation of many, Fuad Bey Hamza returned.
From the 1st March to the 17th April, when Fuad Bey effectively resumed his
functions, Sheikh Yusuf spent much of his time in Jedda. His general attitude
tended to confirm the more favourable opinion of him formed by Sir A. Ryan
(January-February report, paragraph 3), but the French and Italian repre
sentatives, with whom it was a question of discussing treaty texts, found him
difficult and meticulous.
Finance.
3. There was no improvement in the financial situation described in
paragraphs 4 to 6 of the January-February report. On the purely financial side
there was no outward deterioration, perhaps because of the influx of pilgrims
even in reduced numbers and perhaps because recourse has been had to the reserve
supply of gold supposed to have been maintained by the Minister of F inance.
Neither of these factors can afford lasting relief, because the pilgrimage, whatever
immediate money it may have brought in, has been a very poor one and the gold
reserve, as to the amount or utilisation of which no precise information has at any
recent time been available, is understood to have been seriously depleted of late,
if not exhausted. In the meantime, however, the position of British claimants,
with the exception of the Government of India, has improved. As a result of
very strong pressure by His Majesty’s Minister the cable account of the Eastern
Telegraph Company up to the end of December was paid off in March by arrange
ment with the Dutch Bank The outstandings of Messrs. Gellatly, Hankey and
Company were reduced to healthy proportions, and the Legation was not called
upon to intervene further on their behalf. The question of chauffeurs’ wages
assumed a new shape which makes it preferable to deal with it later.
4. How little real improvement there is in the financial situation as a whole
is shown by the attitude taken up in regard to the Government of India claim.
Following on his earlier conversations with Sheikh Yusuf Yasin, Sir A. Ryan
mentioned it to the King on the 4th March. Next day the sheikh brought a
message from His Majesty, in which, with protestations of gratitude for the past
kindness and expressions of regret at having to ask for more, he explained that
owing to the poorness of the pilgrimage, the Hejaz Government could not meet
that debt unless they borrowed elsewhere. The King asked for a year’s grace,
offering to give the Government of India a “ profit ” (although it is against his
religious principles to pay interest) if it were accorded. He explained, not for
the first time, that he would rather owe money to a friend than to strangers.
Sir A. Ryan promised to submit this proposal to His Majesty’s Government and
the Government of India, without any suggestion as to whether it should be
accepted or refused. He pointed out that he had intervened last autumn to secure
delay, the request for which was based on an assurance that the King was working
out plans for financial reorganisation. He did not feel that he could do this a t
second time, although he recognised that the slump in the pilgrimage had been
more disastrous than could have been foreseen in August.
5. The exchange situation was restored early in March by various measures,
of which the principal were the prohibition of the export of gold and the arrange
ment with the Dutch Bank mentioned in paragraph 4 of the report for January-
February. The latter arrangement broke down in April owing apparently to the
insufficiency of the gold ear-marked for the redemption of riyals and nickel
currency accepted by the bank, the Government having limited its liability for