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58                        Records of Bahrain


                                      that occasion (as evidenced by tho correspondence and tho account of
                                      the matter given to me by Mr. Dixon) was as to whether the former
                                      should pay tho arbitrary and heavy duty which the latter sought to
                                      oxact, tho goods owners saying that they ought to pay nothing because
                                      tho goods were merely in transit, tho Customs authorities saying that
                                      full duty ought to bo paid becauso tho goods were in fact lauded in
                                      Persian territory, aud were, as they suggested, not going to Muscat at
       :                              nil.  Tho incident has, in my view, little or nothing to do with the caso
                                      now  before me, and I only refer to it because it was relied upon by tho
                                      Defendants at the hearing as supporting their contention that tho
                                      prohibition was effective and notorious. That there was in fact a
                                      qualified prohibition against tho importation of arms and ammunition
                                      is clear, but I think it is necessary to inquire whether it was really
                                      operative. Now, the Plaintiffs toll me (and l am satisfied that they arc
                                      telling mo the truth) that for many years past, indeed, since 188d», they
                                      have been regularly engaged in the importation of arms into Buskiro.
                                      They at first imported tho goods in execution of the orders of buyers in
                                      Persia, but later on thoy imported tho goods for sale on their own
                                      account. Tho trade was conducted during all these years quito openly.
                                      Tho goods were described in tho bills of lading and ship’s manifests as
                                      arms, and thoy were so ontored at the Customs, botli in England aud in
                                       Persia. After importation they were placed in the Plaintiffs’ go-
                                      down in Bushire and there publicly sold. Other firms at Bushiro
                                       carried on similar trade in the same way. I think it probable that tho
                                       Plaintiffs know that thoro was something in the nature of a prohibition
                                      against tho trade, but I am quito satisfied that they believed it to be a
                                      dead letter, aud that they had novel* heard of any attempt to cnforco it,
                                      or of any complaint by the Persian Government that it was being
                                      disregarded. If the so-called prohibition was effective for any purposo
                                      at all, it was merely for the purpose of ouabling tho representative of
                                      tho Shah at Bushire, who apparently farms his offico from tho Govern­
                                      ment, to levy heavy and arbitrary duties on the goods imported. This
                                      representative is an official who has tho very largest powors ; ho is no
                                       doubt frequently changed, but while koldiug his offico ho can do
                                       practically what ho pleasos.
                                        The Plaintiffs told me that tho duties were fixed and levied by these
                                       officials, who wore well awaro of the nature of tho trade aud who, so
                                       far from objecting to it, complained that thoro was not enough of it.
                                       All this is borno out by Major Meade, our Political Resident in tho
                                       Persian Gulf. In his trade report addressed to tho Government of
                                       India for tho year 1890-97, at p. 5, he says:—“Aiims anu
                                       “ Ammunition.—This trade was found to be so flourishing last year,
                                       “ and tho sums obtained by the local authorities for conniving at it
                                       “ were so considerable, that the central Government considered that
                                       “ there was room for another partner in it, and a special official  was
       i
       I                               “ appointed from Teheran nominally to onforeo the prohibition against
                                       “ the import of arms; but as the official in question paid for bis post
                                       *• in the usual fashion it is certain that neither he nor tho Government
                                       “ had any intention of really carrying out tho orders. In spito of this
       I                               “ new tap on the profits tho trade shows an income of tcu lakhs, aud, I
                                       “ believe, forward shippings are satisfactory for all those who share in
                                       “ this nominally illicit trado.” This, in ray opinion, is a frank, honest,
                                       and accurate account of the position. Thero was no real prohibition
        .
                                       at all j nor did any one engaged in tho trade imagiuo, certainly tho
                                       Plaintiffs did not, that there was tho least danger of interference   so
                                       long as the duties were forthcoming in answer to- the demands of tho
                                       Government officials. If further cvidcnco on this point were wanted it
                                       is found in tho report of our Consul-General, Mr. Ered A. Wilson* foi
                                       the year 1895 on trado at Bushiro. Speaking of tho importation or
                                       arms and ammunition he says“ Theoretically this trado is prohibited
                                       “ by tho Persian Government, but, like all similar prohibitions m
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