مجموعة ١٧ / ١٠ (٤) "شؤون داخلية: الوضع السياسي؛ العلاقات مع الحكومة البريطانية" [و‎‎٧‎٨] (١٠٣١/١٥٥)

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deliberately set it on one side, but rather that they are so absorbed in questions of
prices and in taking daily decisions bringing intimate profit or loss that for the
present other matters are excluded from their minds. Nevertheless, it would, 1
feel, be a mistake to rejoice unduly over the present lull in Pan-Arabism. Whether
we like it or not, we are likely to hear a lot about Arab ambitions and claims as
.time marches on, and we may expect the Prime Minister and his friends to keep
^Jthe ball actively in play. Once Parliament rises in June it is Nun Pasha’s desire
to visit Cairo in person, looking in on Syria, Palestine and Transjordan en route,
there no doubt to explore all possibilities of further progress. I think it very
probable that he will discuss inter alia the future of liberated North Africa and.
the aims of the Arab populations in Morocco, Tunisia and Libya with regard to
greater autonomy and the enjoyment of the benefits implicit in the Atlantic
Charter. this is a theme upon which the vernacular press in Bagdad has
developed a certain eloquence since the Axis suffered its catastrophic defeat in
Tunisia.
10. Ihis great Allied victory became the subject of a stream of telegrams
of congratulation to the Lmbassy from all parts of the country and the Iraqi
Chamber of Deputies telegraphed their good wishes to the House of Commons
and to the House of Representatives. Public opinion has now finally awarded
victory to the United Nations and feels itself free to discuss the future of the
world on this basis, encouraged by the comfortable assumption that so far as
Iraq is concerned, the war is over.
11- The current session of Parliament was prolonged for a further six
weeks on the 15th April. The principal business of the period covered by this
despatch was the new Law for the Regulation of the Economic Life of the
Country, the Budget and the new “ Organic Law.” The first two of these laws
I have already discussed and J have reported in detail on the third in a separate
despatch. It is still before Parliament and I cannot foresee in what form it will
emerge. It will suffice here to say that as drafted it contains nothing likely
fundamentally to change the form of government of the country or the manner in
which the government functions, except possibly the provisions increasing the
size of the Senate which, if adopted, may strengthen considerably an already
noticeable tendency on the part of the L pper House to assert its authority in
parliamentary life. A new amendment to the Income Tax Law was passed by
the Chamber in early May. It provides relief for the small taxpayer but raises
steeply the “ super ” tax on high incomes, bringing up to 45 per cent, the tax pay
able on incomes of over I.D. 7,000 a year (excluding the first I.D. 1,300 of income
which is subject to ordinary income tax). The Senate is still examining this
draft law and are said to regard it with disfavour. Another noteworthy measure
dealt with by Parliament was a draft law to ratify a new agreement with the Iraq
Petroleum Company. This provides for an interest free loan by the company
to the Iraqi Government of 1\ million pounds in return for which the Government
agree to the suspension until two years after the war of the drilling operations
| of the Mosul Oil Company and of the geological survey of the Basra Petroleum
i Company. The law was accepted by both Houses. This is the second free of
interes f loan which the Iraq Petroleum Company group has given to the Iraqi
Government. The first was for three million pounds given in 1939 in exchange
for an amendment to the Mosul Oil Company’s concession and extended the non
production period until 1944. It is possibly of interest to add that in the
concluding stages American oil interests in the Companies attempted to muscle
in on the deal on their own account and indicated that they would like to see an
“ open door ” policy adopted in Iraq as regards oil. The Administration were, I
believe, rather worried by this unexpected development and eagerly embraced the
old adage about “ Better the devil we know . . . . ” etc.
12. Internal security continues to be good except for an unsatisfactory local
situation in the Dohuk district of the Mosul Liwa where Salim Mustafa with his
gang of criminal bandits are still at large, in spite of the efforts of the police to
liquidate them. Elsewhere a few over-zealous “ Communists ” have been the only
political nuisance. On different occasions pamphlets appeared in Mosul, Arbil and
Basra attacking the ruling classes and the usual illicit Communist journals have
continued to make their habitual spasmodic and smudgy appearance in Bag-dad.
At the official opening of a new Bagdad thoroughfare on King FeisaTs Birthday
on the 2nd May the wife of a well-known “ Red ” suddenly flourished a flag
bearing the words ££ The Government should seize the produce from the capitalists
and land-owners and safeguard the food of the people.” She was arrested and led
away without arousing any demonstration of sympathy from the crowd. The
popularity of Communism, nourished on the military achievements of the
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