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1G2                        Records of Bahrain


                           establishment proposed find also any, initial oxpondituro required for hous­
                           ing the now officer and his staff’, so that tho Govornmont may havo comploto in­
                           formation before them of tho financial conscquoncos of tho oliangQ you suggost.
                           You should, at the samotirac, give a clear skoteh of tho duties you would proposo
                           to ontrust to tho Political 0nicer.

                           Enclosure No. G.
                                       . No. 3, dated Busliirc, tho 8th January 1900 (ConOduntial).
                                  Prom—LiEUTBKANT-COT.ONP.T. M. J. Mi’adb, C I.E., Political llcsidont in the Persian
                                                             .
                                         Gulf, and Her Britannio Majesty’s Consul-General for Purs, ole.,
                                  To—Too Secretary to tho Government of India, Foreign Department.
                                I havo tho honour to refer to my letter No. 81, dated tho 5th June 1899,
                            regarding tho farming of tho Customs at Bahrein, in which I mentioned the
                            promiso made by Shoikh Isa that ho would grant no fresh lease of the Customs
                            to tho Bunnialis, without first consulting me on the subject.
                                2.1 havo now, with much regrot; to report, for tho information of the
                            Government of India, that the Sheikh has gono back on his promise, and has
                            extended the present lease by two yoars. My first intimation of this was from
                            our Residency Agent who, in October last, wrote to tho clTcct that lie had
                            heard a report that the Shoikh had renowed the lease to the farmers for a
                            further period. The Assent said, however, that • he could not vouch for the
                            truth of the rumour, as tho Sheikh and the farmors had denied its corrcctuess.
                                3. As I intended to visit Bahrein myself, I took no action at the timo
                            on the Agent’s letter, but, on my arrival, had inquiries made, with tho result
                            that tho membors of tho syndicate, who form tho Customs, admitted that tho
                            Sheikh hod given thorn a further lease for two years commencing from 10th
                            March 1902 and bad signed the fresh agreements on the 7th of last October.
                            They said that ho had dono so in consideration of receiving a furthor loan,
                            and that his account with them was much overdrawn.
                                4 On hooring this, I questioned tho Sheikh, who at first denied tho
                            truth of the rumour; but eventually admitted that my information was
                            correct, and that ho was unable to give any satisfactory explanation of his
                           •conduct. I told him that I would report what ho had dono to the Govern­
                            ment of India, who would bo surprised to bear of it, and might, in con­
                            sequence, be doubtful ns to tho advisability of complying with his request
                            lor the recognition of his son Shoikh flamed as his successor. I again clearly
                            explained to the Sheikh that our only object, in advising him in this matter
                            is to strengthen his hands as tho ruler of Bahrein, and that, his breach of
                            faith towards me, the representative of Government, was not worthy of
                            an .Arab ruler who has been so long in intimate eonucolion with tho
                            British.
                                5; Sheikh Isa, in reply, expressed his great regrot for what ho had
                            dono. lie suid ho was only an ignorant Arab, and hoped that the Govern­
                            ment of India, in whoso favour and clemency ho befiovod, would forgive
                            him.' I then cautioned him to ho careful ns to his futuro nets,' tolling him
                            that if ho desired tho assistance of the British Government he must keep faith
                            with their representative, and ndhore to his promises. Tho interview then
                            terminated, and, in . consequence of what had passed at it, I thought it
                            advisable not to distribute the cust9mnry presents at Bahrein, or' to meet tho
                            Sheikh again before I left.
                               '6. Nothing further can ho done, just now, but later on the Sheikh may,
                            perhaps, see his mistake, and wish to sot asido tho fro>h agreement ho has
                            entered into. If ho doos this the Government of India may, I think, bo
                            advised to support him against the syndicate of Bunnialis, who know woll
                            that wo did not wish him to give them a fresh lease, without consulting us,
                           and who, in spite of this knowledge, havo taken 'advantage of tho Shoikh’s
                           necessities to induce him to break his promise.
                                ' 10
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