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170                        Records oj Bahrain

                                                                BRITISH RESIDENCY,
                      CONFIDFHTT AL.                                 BAHRAIN.
                        (155/48/50)                             18th August, 1950.









                                I am sorry for failing to reply to your letter No.
                           C/H-410 of the 2nd August before this,   I put it uside
                           while I was getting correspondence for the bag ready over
                           the week-end and have not boon able to get round to it
                           since then.
                           2.   1 entirely agree that the matter of the oil company

                           having agreed to a customd duty of 5,625/5 on alcohol in
                           ^atar should be taken up with the Shaikh and/or (according
                           to your discretion) the adviser on two grounds, I think,
                           vi z:
                                 (1)  Disregard of the provisions of the Treaty of 1916.
                                 (2)  Direct dealing by the Shaikh with the company

                           on a political matter. (This to some extent is the company's
                            fault, of course, and it 13 true that while they are speci­
                           fically bound by the Political Agreement to conduct their
                           dealings with the Shaikh through ll.B.D's representative >
                            there is nothing which similarly binds the Shaikh,  But as
 ii
 :                          the breach of the Political Agreement is perhaps more often
 i •                        occasioned by the Shaikh than by the company, I am certain
                            we should discourage him from dealing direct with them. At

  ■                         the same time, you should inform the company that you are
 i\
                            taking the matter up, an-* the reasons for your doing so.)
  i




                        R.McC. And rev/, Esq.,
                            Political Agent,
                                Bahrain.
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