Page 153 - Records of Bahrain (3) (i)_Neat

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British interests and influence, 1898-1904

Tolcgrnin, No. 1*10, dated tho 30th May 1900.
From—1The Political Resident in tho Persian Gulf, Dushiro,
To—The Foreign Secretary, Simla.
Shiraz Manager of Imperial Bnnlc of Persia lias come to Bushiro. Having
been instructed by bis London Board to visit Bahrein, lie intends to go there
by noxt mail to make enquiry •with a view to open a branch of Bank there.
Ho wants mo to givo him letters of introduction to Sheikh aud Gaskin. Ho
tolls mo that ho intcuds to confino his business to banking operations. If
Sheikh has no objections, I do not think wo need havo any, and, in my opinion,
tho undertaking might rcccivo oncouragomcnt on our part. Before, however,
giving letters asked for, I think it as well to roport matter to Government and
ask for instructions.

Telegram, No. 1161 E.-A., dated tho 2nd Juup 1900.
From—Tho Foreign Secretary, Simla,
To—Tho Political Rosidcut in tho Persiau Gulf, Busliirc.
Government of India concur iu views expressed in your telegram 14G,
regarding visit to Bahrein of representativo of Imperial Bank of Persia.
Please report by letter tho result of tho visit.

No. 176, doted Bushiro, the 23rd Juno 1900.
From—Captain C. A. Kemdai.l, Officiating Political Resident in tho Persiau Gulf,
To—Tho Secretary to tho Government of ludin, Foroign Department.
I havo tho honour to report, for tho information of tho Government of
India, that Mr. Van Lonnep, tho Manager of tho Shiraz Branch of tho
Imporial Bank .of Persia, in accordance with instructions received by him
from his Board of Directors in London, visited Bahrein lately with tho object
of ascertaining if it would bo worth while to open a branch of the Bank in
Bahrein.
2. Mr. Van Lonnep returned to Bushiro on tho 19th instant. He has
informed mo that ho intends to submit a report to his Directors, to tho elfcct
that ho is of opinion that’ it will bo as well to open a branch of the Bank at
Bahrein, whero a profitable, business may bo done. Moauwhilo, pending tho
receipt of further instructions from his Directors, ho has loft a small sum of
monoy iu charge of a Nativo Agont, whom ho has appointed in Bahrein for tho •
purposo of commencing operations on a small scalo.
3. Tho Chief -of Bahroin, it appears, docs not view tho project with
favour, and I forward, for your information, a copy of a lottcr which ho has
addressed to mo on tho subject. His reason for wishing to discourago tho
project is apparent. At prosont tho banking business of 'tho placo is carried’
on by tho bauiali farmers of tho Customs and two Nativo merchants who
possess largo capital. Tkeso men, to whom tho Chief is, I hoar, considerably
ludobted, aro in tho habit of discounting bills on Bombay and lending monoy
at high rates of interest, and, boing awaro that thoy will lose thoir monopoly
should a branch of tho Bank bo oponod, hayo influenced tho Chief to opposo tho
mcasuro.
. 4. Tho Chief’s objections aro of courso unreasonable, and in accordance
with Article IV of tho Treaty of 18G1 with tho Ituler of Bahrein, it woui
appear that tho right of tho Bank to opon a branch in tho island is undoubtr
I do not, liowcvor, proposo at presont to roply to tho Chief’s lottcr, but I \
instructt Mr. Gaskin to loso no opportunity of ondcavouring to influonco kir
tako a right viow of tho matter.