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                                        (e) India
             156.  During discussions with the Government of India in 1948 and 1949 it
         was  agreed that the Indian Consul at Basra when appointed should be permitted
         to carry out normal consular functions in respect of Kuwait, without any exequatur
         being granted, on the understanding that all representations to the Ruler would be
         made through the Political Agent, although there would be no objection to his
         corresponding on matters of a routine nature direct with the appropriate
         departments of the Kuwait Government.!3”) The Ruler was consulted and agreed
         to this arrangement.!33') In 1950 the Government of India proposed as an jnterim
         measure that a Secretary from their Legation at Bagdad should visit Kuwait instead
         of their Consul from Basra.(”') This proposal was accepted but His Majesty’s
         Government stipulated that the Secretary should have no direct access to the
         Ruler or his authorities but would make all representations, even on routine
         matters, through the Political Agent. This arrangement is still in force and has
         worked satisfactorily. A Secretary from the Indian Legation at Bagdad has visited
         Kuwait once or twice every year and has been careful to observe the conditions on
         which such visits have been permitted.
             157.  At the end of 1953 there were about 3,000 Indians resident in Kuwait
         territory. Only a few Indian shop-keepers have been permitted to set up business
         and the Ruler is very reluctant to add to their number. A substantial number of
         Indians are employed by the Kuwait Oil Company and on works in Kuwait town.
         In August 1948 there was a fairly serious strike by the oil company’s Indian and
         Pakistani employees. They produced a number of grievances some of which were
         justified and steps were taken to remedy them. A few months later an Indian
         Good-will Mission visited Kuwait!13") (Chapter 2, paragraph 94). They made a few
         complaints about the oil company’s treatment of their Indian employees but found
         the state of affairs much better than the Indian press had led them to expect. In
         December 1953 there was a strike of the Kuwait Government’s Indian and Pakistani
         employees in Kuwait town over a comparatively trivial matter. The Kuwait
         Government dismissed all the strikers, but after a few had been repatriated the
         remainder agreed to return to work and were reinstated.
             158.  In recent years there has been much smuggling of gold from Kuwait
         into India.(”*) There are no restrictions on the export of gold from Kuwait and the
         Government of India have realised that it is necessary for them to take steps to
         stop the smuggling at their end and appear to have made no formal representations
         on the subject though they have discussed it with United Kingdom High
         Commissioner at New Delhi.!300) The Reserve Bank of India has from time to time
         demanded particulars of the source of origin of rupee notes repatriated from the
         Gulf and has threatened to refuse such repatriation unless it can be shown that
         the notes have not been obtained by the illicit sale of gold.

                                       if) Pakistan
             159.  The question of Pakistani representation in Kuwait was not raised until
         January 1953 when in a discussion at the Foreign Office the Pakistan Secretary for
         External Affairs enquired whether Her Majesty’s Government’s offer of the
         appointment of a Trade Agent made in respect of Bahrain (Chapter 2, paragraph 98)
         applied also to Kuwait.(301) He added that the Pakistan Government would prefer a
         Consular official. The objections to a Consular official were explained to him and
         he was told that there would be no objection to the appointment of a Pakistan
         Trade Agent at Kuwait on the same conditions as those proposed for Bahrain,  nor
         to periodical visits by a Pakistan Consular representative from Bagdad or Dhahran
         without exequatur. In 1952 the Pakistan Government proposed that their Minister
         at Bagdad should visit Kuwait. This proposal was accepted but the visit was not
         paid until May 1953. As a result of it the Pakistan Government proposed that
         their Vice-Consul at Basra should pay periodic visits to Kuwait.!302) This proposal
         was accepted by Her Majesty’s Government and the first of such visits was paid in
         December 1953.
            (3SJ) C.R.O. to F.O. Ext. 7590/49 of August 10. 1949 (E 9827/1901/91 of 1949).
            (“ ) P R- to F.O. 350/26/50 G of July 31. 1950 (EA 1004/9 of 1950).
            (“ ) C-R-O- to F.O. Ext. 8879/49 of February 21. 1950 (EA 1904/2 of 1950).
            ! J P R-to F.O. Despatch 6 of January 18. 1949 (E 1391/1062/91 of 1949).
              ’     !° FO- H1I7/3 of May 12. 1951 (EA 1183/5 of 1951).
            (3,u) (EA 1115/4 of 1950.)
            £*') F.O. to P.R. Despatch 10 of January 28. 1953 (EA 1903/1 of 1953).
            ( s) C.R.O. to F.O. SA 6/102/1 of October 21. 1953 (EA 1903/3 of 1953).
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