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British influence and foreign interests, 1904-1906  317


            Confidential.




                 No. 2041, dated Busliirc, the 1st (received 10th) September 1906.
               From—MAJOR P. Z. Cox, C.I.E., Political Resident in the Persian Gulf,
              To—Sir Louis Dane, K.C.I.E., C.S.I., Secretary to the Government of India
                   in the Foreign Department, Simla.
            I have the honour to acknowledge receipt of Foreign Department letter
        No. 3363-E.B., dated 14th August, regarding the administration of the Customs
        at Bahrein, and beg to attach copies of the informal letter which I addressed
          (1) Major Co* to sheikh   Em, dated  14th to Sheikh Esa on the subject and of his
        August 1906.                  reply. I thought it might confuse him if
        Augu»1^1906!' EsA t0 M"*or   Cox' dalcd  a3rd I went into the details of the figures in
         (3) Captain Prideau*to Major Co*, dated 94th  writing, and I therefore asked Captain
        Augun 1906.                   Prideaux to offer to explain them to him
        personally when delivering my letter.
            2.  The Sheikh's reply is much what I feared it would be; a friendly but j
       .absolute refusal to entertain my proposals.                       *
            I cannot think of any further possibility in the way of friendly overture
        on our part, and it remains for the Government of India to decide, on the facts
        before them, what line they will now pursue. 1 agree with Captain Pridcaux
        in thinking that if it is considered inexpedient to assume management of
        Sheikh Esa’s Customs before January 1908, when the present larm falls in, it
        would be belter for us to inform the Sheikh forthwith that, with the proviso
        that we could not permit any lease to a foreign agency, we propose to leave
        him to his own shortsighted devices, and that he is therefore at liberty, if he
        chooses, to resell the larm to the Bania contractors; this, in our opinion, being
        a preferable alternative to his attempting to manage the Customs collection by
        his own untrained retainers.
           3.  There is one point which I may briefly allude to in conclusion. As Captain
        Prideaux mentions in his note of 18th June, there is no doubt that Messrs. Gray
       Paul and Company, or for that matter Herr Wonckhaus's firm, would be glad
        enough to acquire the farm if-they., could. Captain Prideaux deprecates this
        contingency on'the ground"that if either ot the European firms obtain.the lease,.
       Jic..be]ievcs that there would be continual effort on its part toTnjure the other and
       its clients. I am'not'sure that l agree with him in principle.
           Messrs. Gray Paul and Company area British firm of repute and would I
       think keep their competitive amenities within reasonable limits, and for the rest
       it becomes merely a question of.our supporting a British firm and British trade
       against a German firm and the inroads of German trade. Anything that we can
       legitimately do to further our interests seems to be desirable.
           In the present instance, however, Sheikh Esa is the difficulty and I fear it
       is extremely unlikely that he would entertain an offer from Messrs. Gray Paul, at
       present at all events.

       Purport of a letter, dated 14th August igo6,from Major P. Z. Cox, C.I.E., to
                       Sheikh Esa bin Ali Al Khali fall, Bahrein.
           After compliments—1 trust that you and your family have remained in the
       best of health during my absence in India.
           I write you this informal letter to let you know that since my return to
       Bushirc 1 have received and studied the several annual reports of our representa­
       tives in the different posts under this Residency both in Persia and on the Arab
       side, regarding the progress of trade and events in the countries in which they
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