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(e) Banks
142. All the Rulers except Abu Dhabi and Fujairah have given an
undertaking not to enter into negotiations with a bank for the opening of a branch
in their States without the approval of Her Majesty’s Government (paragraph 73
143. On January 5, 1946 the Imperial Bank of Iran (now the British Bank of
the Middle East) entered into an agreement (Appendix L) with the Ruler of Dubai
for the opening of a branch at that place. The agreement gives the Bank a
monopoly for 20 years. The branch was opened in October 1946.
144. On February 5, 1953 the same Bank entered into
(Appendix M (i)) with the Ruler of Sharjah for the opening of a branch at that
place. The agreement was for 20 years but was not exclusive. By a subsidiary
agreement (Appendix M (ii)) it was agreed that the branch would be opened for
only two days a week, the Bank having the discretion to open it for six days a week
should the volume of the work in the future justify this. The branch was opened in
March 1953. The Ruler did not solicit approval before entering into negotiations
with the Bank but was subsequently reminded of his obligation.(n')
145. In November 1953 the British Bank of the Middle East signed an
agreement with the Ruler of Abu Dhabi. It is on the same lines as the Bank’s
agreement with Dubai (paragraph 143 above) with the exception of the following
two provisions: —
“ Article 12. It is agreed that the Bank will open a branch in Abu Dhabi
territory within six months of the oil company which holds the concession
(whether land or sea) confirming in writing to the Ruler that they have started
the commercial exploitation of oil discovered in his territory.”
“ Article 13 (/?). If at any time the parties to this agreement are unable
to settle between themselves any dispute that may arise it is agreed that they
should request the Political Agent to arbitrate or to appoint an arbitrator,
and the decision of the Political Agent or his appointee shall be accepted as
final and binding on both parties.”
(/) Post Office
146. The Government of India opened a post office in Dubai in 1941. On
partition in 1947 it was taken over by the Pakistani authorities who handed it
over to the General Post Office on April 1, 1948. British stamps are now used
surcharged with rupee values only.
(g) Telecommunications
147. In 1933, as a result of arrangements made between Imperial and
International Communications (later Cable and Wireless) Ltd. and the Air
Ministry, Imperial Airways made the Wireless Telegraph Station which they had
established at Sharjah for civil aviation purposes (paragraph 122 above) available
for the use of the general public.(135) The Ruler, who had not been consulted,
objected and it was not until 1937 that he informed the Political Agent Bahrain
that he had tacitly admitted the principle of a public wireless station as he saw
that it was of benefit to his subjects.!I‘"1) Imperial Airways and their successors
the British Overseas Airways Corporation continued to administer the Telegraph
Station until 1948. In 1947 Cable and Wireless on the assumption that the
Corporation would shortly be withdrawing from Sharjah put forward a proposal
for seeking a concession there,C57) but when the Corporation withdrew
International Aeradio Ltd. took over the Station which they still continue to
administer. Under the Civil Air Agreement of 1951 His Majesty’s Government
obtained the right to operate a wireless station directly or through representatives
on their own behalf or behalf of others and to levy charges. At the same time the
Ruler was informed in writing (Appendix N) that he could send telegrams free of
charge up to a limit of 2,000 words a year through the telegraph station.
148. In 1950 International Aeradio wished to open a telegraph office at
Dubai but it was held that this was in the sphere of influence of Cable and Wireless.
The latter accordingly entered into negotiations with the Ruler of Dubai and in
1951 obtained from him a concession (Appendix O) for 20 years. It covered bo
the establishment of a telegraph station and the installation of a telephone service.
(,J4) P.R. to F.O. 1115/1/10/53 of March 1 1. 1953 (EA 1115/5 of 1953).
(I3S) I.O. lo F.O. P.Z. 1657/33 of March 27. 1933 (E 1652/11 /91 of 1933).
(,s‘) Bahrain to P.R. 452-21 /19 of February 25. 1937.
(,ST) I.O. to P.R. Ext. 1359/47 of June 26. 1947 (W 2272/3/82 of 1947).