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                      security, there is scarcely room for doubt that it would prove an excellent
                      investment. It would of course ho necessary to devise some means of securing
                      the advantage to our own traders.
                          329-C. Tho third schomo refers to a largo tract of land on the West bank
                      of the ICarun. Liouteuant Lorimcr gathered from Haji Rais tho following
                      particulars:—
                          Tho land is the property of tho Nizam-us-Sultanch and is leased from him
                      by the Sheikh for £1,600 per annum. In Sheikh Mizal’s time, owing to the
                      uuruly stato of the Arab inhabitants, tho Nizam-us-Sultanoh was very anxious
                      to sell it. Sheikh Mizal however, did not then want to purchase, and instead
                      reduced the Arabs to order; and the present arrangement was come to. Under
                      the present improved circumstances tho Nizam would ask an impossiblo or
                      exorbitant prico for it. Haji Rais hinted however that a time might  come
                      when tho Nizam-us-Sultanoh would bo willing to sell. Tho prico might then
                      bo brought down to perhaps £30,000.
                          329-D. Beyond tho advantage of increased hold on tho Sheikh’s “ affection,**
                      Lieutenant Lorimer does not see clenrly that wo would stand to gain anything
                      in helping him in this project. It would of course help towards tho consolida­
                      tion of his power in Arabistan.
                          In seeking financial aid, the Sheikh’s ultimate object would not be merely
                      money but rather an actual or practical guarantee by tho British Government.
                          330.  Mr. McDouall roported in his letter to Sir A. Hardiuge, dated 26th
                      August 1904:—
                         “ I have the honour to report that there being an idea, consequent on tho lato visit oi a
                      Dutch Engineer to the Karun, that the Persian Government may grant a concession for
                      building a dam at Almaz, the Sardar Arfa points out that uulcss be held such concession or
                      had some control over such dam, it would be likely to do immense damage to his country.
                      A diminution in tho body of water coming down would, in his opinion, effect the date groves
                     on the Bahmashir river, as the sea water would extend further up and destroy tli2 date
                     trees in the same way that the plantations of Uubbaa were destroyed by the failure
                     of water in the Mared or old channel of tho Karun. It would also damage that part of
                      Fellahieh which is irrigated by the two canals from the Karun, known as the Salmanioh and
                     Fellabieh canals. Ho would therefore opposo such couccssion or demand heavy compensation.
                         “ There appears to be some ground for his fear, but at the same time it would probably
                     only accelerate what is likely to happen in the course of nature, judging from the drying up
                     of other ohannels in the delta and the increase of shoals io the Bahmashir.
                         “ The whole question is one for expert opiuion, as is that whether the cutting of a canal
                     from the Karun from a fow miles above, and into, the Bahmashir would not divert more water
                     into the latter.”
                         331.  On the last two schemes Sir A. Hardinge expressed the following
                       Sir A. Hardinge to Major Cox, No. 38, dated 31»t Opinion !*“
                     Anguit 190*.
                         u With regard to the first of these schemes, viz., the irrigation of part of Arabistan by
                     five or six steam pumps, I think it unlikely that His Majesty's Government would give the
                     Sheikh any direot financial assistance with a view to the execution of this project.
                         u He could probably, however, obtain such assistance from the Imporial Bank of Persia,
                     and it might be possible that an advance to him by that institution might, under certain
                     conditions, bo guaranteed by His Majesty’s Government.”
                            *«**##**
                         “ The question of the acquisition of the Nizam.es-Sultaneh's lands on the west bank of
                     the Karun by the Sheikh does not seem to me to be one in which His Majesty's Legation
                     could usefully interfere. The Nizam, whom I know well, is an extremely suspicious and
                     close-fisted man, very keen about money, and the mere notion that wo wero interested in the
                     transfer of his property to the Sheikh would probably make him stand out for a higher price
                     under the impression that he was dealing with a rich foreign party to the transaction.”
                         332.  There arc, thirdly, to be considered the British vested interests in
                     Arabistan, which would be affected by the irrigation works. On this point we
                     shall quote Lord Curzon’s minute dated 1st August 1904:—
                                            Minute by Lord Curzon.
                                               Karun Irrigation.
                        As regards the Karun Irrigation scheme, I desire to bring to the notice of the India Office
                     a very important point.
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