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                           Lord Lnnsdowne says that if, ns he presumes is the case from my aocount of Your Ex­
                        cellency's statement to mo, tlio Poreian Government is really attempting to repudiate the
                        arrangement mndo with you last year, 1 am authorised to say that you are in his opinion justi­
                        fied in opposing such attempt. IIo instructs mo to remind you of thn messago which ho eont
                        you last year aud to add that you may rest assured of the support of the Brit ish Government 60
                        long as you on your side observo the conditions of tho arrangoment made between the Persian
                        Government and yourself.
                           He bos authorised mo to point out to that Govommont tho necessity for respecting the
                        conditions of tho arrangement on their side, but I do not propose to do’ so until I hear further
                        from you, as I think it will bo bettor in tho intorests of good relations between tho Persian
                        authorities and yourself that our intervention should not bo invoked until all’other means of
                        adjusting matters between them and you havo been exhausted Meanwhile, I should bo obliged
                        if you would 6end rao to Tehran, through His Majesty’s Resident at Bushiro, a copy of tho noto
                        from M. Naua, promising not to take duty on your personal imports and any further inform­
                        ation on this question."
                        (iii) Presence of Persian Customs Boats under the Belgian Customs administration of
                                           Bushiro on the Shat-el-Arab, 1904.

                            282. In September 1904, the Persian Revenue Steamer Muzafferi (in
                          Major Coi'a ttlcgraui,datod J3th and 18th Sep- Oh&Tge Of the Belgian OustOlCS Adminis-
                        umbor 1904.                   tration at Bushire) and the gunboat Vpv
                        8epolia were found busy in the Shat-cl-Arab looking out for contraband
                        without apparently consulting the Sheikh of Mohammerah. They seized two
                        Koweit dhows between Gusbali aud Pao. Ono of them, which had 14 rides on
                        board, was released on payment of a fine of 800 tomans under protest, and the
                        other which had 28 rifles on hoard was detained at Bushiro pending tho pay­
                        ment of a fine of 1,200 tomans.
                            283.  The Sheikh of Koweit complained of further acts of interference with
                        Koweit vessels on the part of tho Customs administration of Persia. Two of
                        the vessels, it was alleged, wore carrying dates and wood between Pao and
                        Koweit. Another Koweit boat bound for Basrah was seized, searched and de­
                        prived of 12 small arms, which were carried in the proportion of one gun for
                        every member of the crew, for protection against piracies.
                            284.  Captain Knox, Political Agent, Koweit, in his letter No, 24, dated
                        14th September 1904, referring to these cases, observed that these constant
                        complaints, prove a deliberate policy on the part of tho Persian Government, of
                        which the objeot is to destroy the British influence in the Persian Gulf. He
                        reported that the feeling in Koweit itself was very strong and might at any
                        time lead to acts of retaliation on the Persians and thus the situation would
                        become acute and dangerous.
                            285.  The Persians, it appears from Colonel Knox’s report, proceeded on
                        the extraordinary assumption that Arab Nakhodas are bound to prove that they
                        have not committed an offence against the Customs Department, which in his
                        opinion, can have only one result, where on the ono side we have a well-regulat­
                        ed department, armed with clerks, regulations, and engines of oppression of
                        every description, and on tho other ignorant Nakhodas seldom able oven to read
                        and write.
                            If tho Customs Administration persisted in this course of conduct, the
                        only remedy that appeared to him at all likely to meet the situation was that
                        one of our gun-boats should attend the Muzafferi and Persepolis, wherever
                        they went especially in the open sea, and whenever they overhauled a boat hailing
                        from the western shores of the Gulf, the Commander of the gun-boat should
                        insist on having a clear primd facie case against the boat being mude out to
                        his satisfaction or the immediate release of the vessel.
                            280. So far as the Sheikh of Mohammerah was concerned, when the news
                         of the first movements of the Persian ships was telegraphed by Major Cox to
                        the Government of India, they telegraphed to Sir A. Hardingo on 21st Sep­
                         tember :
                            “Under the Agreement of 1902, the Sheikh was to be subordinate to tho Ministry of
                         Customs only. The Arabistan Customs were separated from tho Gulf Customs. Does not
                         the viwt to tho Bushire Director in Persepolis constitute a direct violation of the arrange*
                         meat between the Persian Government and the Sheikh.
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