Page 188 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

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in fact been followed and Sa’id has himself taken the initiative in obtaining the
removal of galling restrictions and in the assertion of his independence before the
world. At the same time he has remained consistently friendly to Her Majesty’s
Government, no doubt realising the extent to which he is dependent on their
support. Her Majesty’s Government now make no attempt to interfere in the
internal affairs of Muscat beyond from time to time encouraging the Sultan to
develop his local resources and they only act on his behalf in external affairs when
requested by him to do so. At the same time they are the only power represented
in Muscat and undoubtedly continue to exercise a strong if not predominating
influence there, while the outside world including the Omani tribes almost certainly
credit them with more influence than they in fact possess.
13. The State finances were in a parlous condition when Sa’id took over and
in 1931 the budget was reported to show a deficit of about £10,000 while a portion
of the loan of £48,750 received from the Government of India in 1918 and 1920
remained to be re-paid. Sultan Sa’id with the assistance of British advisers for a
year or two and later by his own unaided efforts quickly restored financial stability.
The loan to the Government of India and other debts were paid off and in 1950 it
was reported that the State revenues amounted to £225,000, that the expenditure was
about half this and that there was a reserve of about £1,000,000. The Sultan was
assisted in this by an increase in tariffs which was agreed to by His Majesty’s
Government in 1933 and by the great increase of the value of imports and exports
which took place during the Second World War. Since the last British Financial
Adviser left in 1933 he has been his own Finance Minister and has shown ability in
this capacity though he has a tendency to err on the side of parsimony. Not only
is his personal expenditure modest, but he fails to exercise the generosity which is
necessary to win the affection of his tribes and he is hesitant about spending money
on beneficent works such as schools and hospitals and on development schemes. At
one time he used to send particulars of the Muscat State budget to the Political
Agent but ceased to do so in 1948. He has never been willing to give any
information about the income and expenditure in the Dhofar Province, which he
treats as his private estate. Although the State is now solvent it still has a very
small income compared with that of the oil-producing Shaikhdoms and there is
unlikely to be any great improvement unless oil is discovered. It is believed that
the Sultan has a fairly substantial fortune of his own set aside in addition to his
State reserve. Most of the latter is not invested but is kept in the State Treasury.
14. In 1928 Mr. Bertram Thomas still held the post of Financial Adviser. He
retained the appointment until 1930 when he was succeeded by Mr. Hedgcock.
The latter came into conflict with the political authorities and resigned after about
six months of office. Arrangements were then made for Captain Alban the
Commandant of the Muscat Infantry to perform the functions of Financial Adviser
in addition to his ordinary duties. When he left Muscat in 1933 nobody was found
to succeed him as Financial Adviser and early in 1934 the Sultan abolished the
post. He however made specific requests for the services of a British Adviser in
1937, in 1938 in an interview with the Viceroy and again in 1945. In the later year
the Government of India sent him an Indian to interview for the appointment but
he refused to accept him and reiterated his request for a British Adviser. When
at length in 1949 a British Adviser was found for him in the person of Lt.-Col. B.
Woods Ballard, C.I.E., M.B.E., he made him Minister of Foreign Affairs and not of
Finance. It is probable that by this time he had decided that he preferred to keep
the State’s finances as a closely guarded secret under his own control. In 1953
Woods Ballard resigned on the termination of his contract and was replaced by
Mr. N. Mc’L. Innes.
15. The bulk of the Muscat revenues is derived from customs duties. Under
Article 6 of the Commercial Treaty of 1891(2‘) the amount of import duty was
limited to 5 per cent, ad valorem. In 1930 Taimur, in order to increase his revenues,
applied for the removal of this limitation. His Majesty’s Government were ready
to agree but considered it necessary first to obtain the consent of France, the United
States of America and the Netherlands. Under the treaties between Muscat and
the first two of these countries a similar limitation exists while the Netherlands
are entitled to most-favoured-nation treatment^22) Sa’id after his accession
suggested the denunciation of these treaties but it was agreed that although such
(*') XVI at p. 310, Aitchison, Vol. XI.
(”) Nos. I. 2 and 3 VI, T.C.
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