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PART II—CHAPTER XI.
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                     rates, even when subjected to the heavy freight of steam vessels, and because
                     the wealth thus created in Persia gives rise to a greatly increased demand for
                     the import of piece-goods and copper into that country.
                         5.  The trade in opium and sugar may be capable of indefinite development
                     In opium because it is plain that in a country where this article is not a monopoly*
                     and where it is unsubjected to heavy export duty, it could ccctcris paribus profit­
                     ably compete with our restricted Anglo-Indian opium trade. In sugar, because
                     Persia consumes a vast quantity of this commodity, and because Batavia and
                     Mauritius, whence she can most profitably import unrefined sugar, stand always in
                     need of cereals and dates which Persia can most readily supply.
                         6.  Whether the present great development of trade in the Persian Gulf
                     would long outlast the close of the American war, may be a debatable question ;
                     probably every year that war lasts tends to increase and to render permanent
                     those habits ot industry and desire for comfort which the trade itself has
                     awakened. But at the same time it is probable that the close of the war will be
                     followed by a considerable fall in prices, and that it might be doubtful whether
                     the trade could then continue to support steam freight, even although the trade
                     itself should not fall off in actual bulk.
                         7.  Meantime, however, the trade between Bombay and the Persian Gulf has
                     become such that I am induced to believe that, independent of all freight by
                     native craft, the six-weekly steamers would always find a remunerative cargo
                     from and to Bushire alone.
                         8.  It would be for Government to determine whether the time may not be
                     arrived for modifying the circuitous route by which this six-weekly steamer at pre­
                     sent reaches the head of the gulf, in favor of a more direct route. It is plain that
                     the circuitous route delays the Government mail, while it adds mileage to the
                     steaming, and compels the contractors either to refuse freight at intermediate
                     ports, or else to except freights less remunerative than those for a thorough
                     passage.
                         9.  It is possible that the present circumstances might be conveniently met
                     by allowing the mail steamer to run direct for Muscat and the Persian Gulf or
                     ultimately, even direct for the Persian Gulf, thus leaving Kurrachee and Guadel
                     to the Kurrachee line of trade, or to such other independent means as demand
                     and opportunity might seem to call for.
                         10.  Viewed from a commercial point the Persian Gulf steamer collects no
                     freight at Guadel, and from Kurrachee brings only some indigo and takes back
                     a little silk.. The freight collected even at Muscat is comparatively immaterial.
                     The condition of Muscat indeed is, I think, peculiar and transitional. In the
                     first place we must recollect that Muscat arose into its greatest commercial im­
                     portance as the point where native craft from the Arabian and Persian shores of
                     the gulf met seagoing craft. The then Imaum of Muscat possessed a maritime
                     dominancy in the waters of the gulf, and because, in fact, the wholesale supplier
                     of, and purchaser from, its littoral tribes. More recently that Imaum added to
                     the commercial importance of Muscat by establishing his power in the East
                     Coast of Africa, thus extending his seaboard trade. The African portion of the
                     Imaum’s territory in fact arose out of the commercial requirements of his
                     Asiatic territory ; but it appears to me that in the same manner as Muscat may
                     be said to have superseded Ormuz as an entrepot, so have our more recent
                     efforts tended to supersede Muscat in favor of more convenient points within the
                     gulf. A considerable portion of goods that our steamers bring direct to Bunder
                     Abbas, Linga, or Bushire, as also the cotton, wool, dates, and corn that we
                     export hence is so much taken from the trade profits and Government revenues
                     of Muscat. There remains to her salt, which she brings in native craft from the
                     Bunder Abbas regions, and also her dates which she exports to Calcutta or else­
                     where, bringing thence principally rice for the consumption of the Arab
                     littoral. Again, , when by our arbitrament between Zanzibar and Muscat we
                     tore as under this web and woof of her sea-trade, we gave, indeed, to the
                     Sultan of Muscat an annual subsidy from Zanzibar of dollars forty thou­
                     sand, but we lopped off that active trade, and broke that spirit of maritime
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