"ملف رقم: ١٤/ ١٤ الاسم؛ بنك لمسقط (البنك الإمبراطوري في إيران والخليج الفارسي)" [و‎‎١‎٩‎٤] (٤٣٤/٣٨٧)

Confidential
Political Agency & H.B.HTs Consulate,
Muscat»
D.O. No.C 294-U/14
dated the 111
The Sultan objected originally to the bracketed phrases
of the preamble to the Agreement I think, because he considered
they implied separation of the functions of Sultan and of the
ruler of the State, I attafch^ a record of a conversation which
I had with His Highness on this subject on the 24th June.
2.
Aty own view is that the omission of the portions bracketed
should have no adverse effect upon the eventual operation of the
Agreement•
3
The Sultan rules, as you know, completely autocratically
and there are no signs of this form of government being in any
way modified at present. The possibilities for an alternative
government are therefore,
(a) If the Sultan were to die or abdicate, he would be
succeeded by a legitimate heir. ( This eventuality
is catered for in any case^in the Agreement as it
stands ).
(b) If the Sultan were to be forcibly deposed, he would
be succeeded by completely unpredictable elements in
the State and for this reason, I do not consider that
any Agreement drafted now could possibly take account
. of such eventualities. In the event of the tribes
attacking and capturing the Capital, for example,
which is possible, though hardly likely, the Bank would
in any case bave to reconsider its position.
4
My own view is that the Sultan and his heirs and successors
represent, at present, the only stable power in Muscat and Oman with
ich the Bank will be able to deal, and should his dynasty be
deposed in future, any new regime is likely to be of such a nature
that the Bank and other British Companies would probably have to
enlist direct help of His Majesty's Government in ensuring that the
de facto
D. Scott, Esquire,
Manager,
Imperial Bank of Iran, Muscat