Page 78 - Historical Summaries (Persian Gulf - Vol II) 1907-1953
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          after his accession gave instructions for its installation to be proceeded with in
          spite of opposition in the town. Pending its erection the Kuwait Oil Company
          assisted the town first by bringing water for it from the Shatt al Arab in tankers
          and later by providing it with water from their own distillation plant. The State
          distillation plant which was planned to produce 1 million gallons a day began
          to function early in 1953. In 1952 the Ruler sanctioned the installation of a
          second plant of the same size.
              23. In 1950 a canal was suggested as a possible alternative to a pipe-line
          from the Shatt al Arab. In 1951 the whole project was discussed with the Ruler
          again, and he said he had been advised by Nuri Pasha to wait until the distillation
          plant had been installed.(4‘) In 1952 when he visited Iraq, Nuri Pasha said that
          Kuwait could have water from Iraq provided they fetched it. In 1953 the Ruler
          requested Her Majesty’s Government to obtain official confirmation of this from
           the Iraq Government. An approach was made accordingly and the Iraq
           Government “ agreed in principle to the proposal relating to the carriage of water
          from the Shatt al Arab to Kuwait.”(4i) The Ruler decided that the project should be
           financed by his Government and not by a company, and at the end of the year
          the Development Board appointed Sir Alexander Gibb and Company as
          consultants for it.
              24.  A Kuwait Municipality was formed by Shaikh Ahmad in 1930. It consists
           of a permanent President who is a member of the ruling family (in 1953, Fahad)
           and a director and eleven members who are elected every two years by a very
           limited electorate. In 1933 Ahmad added i per cent, to the customs duty to
           provide funds for the Municipality, but it is now subsidised from the oil revenues.
           A monthly tax is recovered from shops in the market. The Municipality arranges
           for scavenging in the town and is consulted about town development. The division
           of responsibility between it, the Public Works Department and the Development
           Board is ill-defined but this has no serious consequences as Fahad is head of all
           three. The Municipality issues ad hoc notices from time to time, but there are no
           proper bye-laws.
               25.  Before the grant of an oil concession to the Kuwait Oil Company in
           1934 the bulk of the State’s revenues was derived from customs. Until 1933 the
           duty was 4 per cent, ad valorem. In that year it was increased to 4£ per cent, to
           provide funds for the Kuwait Municipality. In 1936 it was increased to 5 per cent,
           but remained at 4 per cent, for British merchants. In 1940 it was increased to
           5J per cent, and in 1941 to per cent, and on the last occasion the whole duty
           was made applicable to British subjects (paragraph 5 above). At the end of 1951
           when in view of the enormous increase from oil the duty had ceased to be of any
           importance from the point of view of revenue it was reduced to 4 per cent. In
           1951 a British expert arrived to assist in the administration of the Customs
           Department (paragraph 15 above). He was not suited by temperament to service
           under the Kuwait Government and succeeded in creating a good deal of opposition
           to himself. Malpractices were alleged against him, probably unjustly, and in 1952
           he resigned. He was not replaced as by this time the importance of the department
           had greatly decreased.
               26. It may be noted here that no duty is charged on alcoholic liquor imported
           for consumption by persons subject to the Order in Council, the Ruler being of
           opinion that any such duty would legalise the presence of alchohol in his State.
           Alcoholic liquor is imported by Messrs. Gray Mackenzie and Company and
           distributed by the Political Agent on a permit system as in Bahrain (chapter 2,
           paragraph 18). The Kuwait Oil Company import their own supplies. An
           Alcoholic Drinks Regulation(4#) was issued in 1951 to regulate the import, export
           and disposal of liquor by persons subject to the Order in Council. Although the
           Ruler has on one occasion complained of the increase in the consumption of
           alcohol in the State he does not appear to attach as much importance to the matter
           as the Ruler of Bahrain, and there have not been the same complaints about
           leakages.
               27. In 1929 some kind of mobile force was brought into being to deal with
           raids, but no attempt appears to have been made to organise a police force before
           the last war and in 1938 the Ruler was maintaining order through his personal
              (44) P.R. toF.O. 1421/44 of July 21. 1951 (EA 1421/16 of 1951).
              (4i) Baghdad to F.O. Despatch 188 of October 27. 1953 (EA 1421/29 of 1953).
              (44) No. 2 of 1951.
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