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                           110. The Persian Government being however informed of Saiyid Salim’s
                       determination to blockade Bandar Abbas in consequence of thcirjjrefusal to
                       renew the lease of that port, claimed the mediation of the Government" of India.
                       Thereupon Sir S. Fitzgerald, Governor of Bombay, proposed, and the Gov­
                       ernment of India agreed, to instruct Colonel Pelly to the effect that his good
                       offices should be used to procure a renewal of the lease, and that meantime
                       hostilities must be suspended. Mr. Alison had urged the despatch of a ship-,
                       of-war to the scene of the threatened collision, but with this reqest Sir Seymour
                       Fitzgerald was unable to comply, as there was no vessel then available at
                       Bombay.
                           111.  Letters subsequently received from Colonel Pelly confirmed the in­
                       telligence of the intention on the part of Saiyid Salim to make a naval demonstra­
                       tion along the Bandar Abbas coast, and the desire on the part of the Persian
                       Government to assume the direct management, a nephew of the Prince Governor
                       of Fars being made Governor of Bandar Abbas.
                           112.  The Report from Colonel Pelly, No. 56, dated 9th May 1868, showed
                       that he was, according to his instructions, endeavouring to mediate between the
                       two parties, and was about to meet the Prince Governor for the purpose of
                       arranging matters. The Persian Government had expressed a desire to keep
                       Bandar Abbas in their own hands, but at the same time an apprehension that
                       they could only do so with success if the British authorities intervened to
                       prevent the Sultan from attacking the port. The Shah quite contemplated the
                       possibility of his being compelled to renew the lease in case the British Gov­
                       ernment declined to intervene for the protection of his authority at Bandar Abbas.
                           113.  We might quote the following paragraphs from Colonel Pelly’s report,
                                                     in which he expresses his views upon
                           Political A., June 1868, Nos. 147*49.
                                                     the situation and the policy we should
                       follow
                          8.  The position the Sultan would now take up seems to be thus
                          1st.—That the Convention under which the late Imam consented to farm Bandar
                       Abbas in 1856 was forced on him under emergent circumstances, and that the late-
                       Imam would not have given in, had it not been for the then Resident in the Persian Gulf
                       preventing some of the Imam’s Arab allies from assisting him.
                          and.—That if the Persian Government be willing to renew the Convention, he, the
                       present Sultan, would be willing to come to reasonable terms; and this, although a
                       question of fact, the Sultan denies that the term of the original lease is expired.
                          3rd —That if the Persian Government refuse to come to terms concerning the lease,
                       the question of Bandar Aobas, as between Maskat and Fersia, reverts to the position
                       in which it was prior to the Convention of 1856; in other words, that the Sultan would
                       in such case assert the Bandar Abbas districts to be Maskat territory, and appeal to
                       force in support of his claim..
                          9.  It appears to me very desirable, in the general interests of peace and trade, that
                       the matter should be amicably arranged, as proposed. by His Excellency the Governor.
                       But if this cannot be done, I do not see my way of advising Government to interfere to
                       the prejudice of the Sultan of Maskat.
                          10.  I beg respectfully to express my entire concurrence in the view taken by His
                       Excellency the Governor, that it is for our interests, and, indeed, 1 would add, for the
                       interests of trade in general, that the Bandar Abbas districts should be administered
                       from Maskat rather than by the Persian Government.
                          11.  His Excellency in Council will observe from the book of Treaties that, on a
                        Vide ••Thomas' Book of Treaties'’ published in former occasion we have admitted Bandar
                       1851, page 3*4*               Abbas to belong to the Imam of Maskat.
                          12.  I think we should be careful how we allow Persia under any new arrangement to
                       imply or assert claims to questionable territory, especially insular territory, and most
                       especially the islet of Angaum, which last Maskat asserts to have always belonged to her,
                       and which even the Convention of 1856 does not include among the territories specified
                       as being leased from Persia.
                          13.  I think further we should object to Persia entering in any   fresh lease a clause
                       excluding strangers. The territory must either be Maskat or Persian, and even ilit be
                       the latter, our subjects have still a treaty right to reside there, to trade there, and to
                       purchase household property.
                          14.  His Excellency in Council will, moreover, bear in mind that it is the arfanS®r”c”t*
                       made by the British Government at heavy cost which alone render trade in the c 1.,
                       Guif possible : Persia has not a war stick afloat. Were it not for us, the Arabs wouui
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