Page 642 - PERSIAN 9 1941_1947

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Civil Aviation.
A new Air Agreement was concluded with the Sultan of Muscat
on tho 5th April. It gives His Majesty’s Government certain
powors of control and allows thea the use of all existing landing
grounds in Muscat territory. Elsewhere there nave been no develop­
ments of note. In Kuwait9 the existing landing ground end
facilities are Inadequate for the greatly Increased air traffic
resulting from the Oil Company's operations, and the construction
of anew landing ground Is under consideration. The air services
have on the whole been adequate for local needs.
Commercial
With the assistance of His Majesty's Government, the Gulf
States have been receiving an adequate supply of wheat at a reason­
able price. Supplies of tea and sugar from India and elsewhere
have also been adequate. There is a shortage of rice. Most of
the other necessities of life are available in reasonable quantit­
ies though prices in some cases are high. Since the 15th August,
exchange control is being exercised through this Residency except
In respect of hard currencies, fixed quotas of which were allotted
for the year by the Reserve 3ank of India. Trade in Muscat has
suffered severely owing to the absence of a bank there and the
restrictions placed by the Reserve Bank of India on the operation
by Muscat merchants on their accounts in India. Tho pearl trade
has slumped as a result of the ban imposed by the Government of
India on the import of pearls Into that country, and the export
trade in dried -dates from Muscat .has also suffered on account of
restrictions Imposed by that Government on their Import to India.

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