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            plunder her coast and not allow a Persian boat to put to sea. It seems strange that a
            kingdom so circumstanced along her sole and only ocean sea-board should venture 10
            exclude strangers, or lay claim to sovereignty over islands. The islands, it is true, may
            in point of distance be nearer to the Persian than to the waskat coast; but channel islands
            arc usually found to belong to a naval and not to a purely military power.
                114. The Government of India’s instructions and observations on this are
                                           contained in their letter No. 634, dated
                 Political A., June 1868, No. 150.
                                           19th June 1868, to the Government of
            Bombay:—
                In reply to your letter No. 132, dated gth June, and with reference to previous
            correspondence, I am directed to communicate to you the views of His Excellency the
            Viceroy and Governor General in Council regarding the lease of Bandar Abbas.
                2.  Having regard to the terms of the 4th and 12th Articles of the Agreement concluded
            in 1855 between the Persian and Maskat Governments as contained in the copy of
            the original Persian Agreement forwarded with your letter No. 124, dated 31st
            December 1864, His Excellency in Council is inclined to the opinion that the lease of
            Bandar Abbas, etc., for 20 years was not limited to Saiyid Said and his sons, as stated
            in Colonel Felly's translation, but included any Ruler directly descended from the loins
            of the then Imam who might be on the throne of Maskat within the period of 20 years
            for which the lease was given.
                3.  At the same time, with reference to the attitude now assumed towards each other
            by His Majesty the Shah and the Sultan of Maskafc, His Excellency in Council is of opinion
            that the present dispute should be adjusted with reference rather to what is equitable
            and right, than to the mere terms arranged in /tfyy. His Excellency in Council considers
            it highly desirable, both in the interests of the trade of the Pursian Gulf and on other
            grounds, that the lease to Maskat should be renewed, and that the Resident in the
            Persian Gulf should mediate between the contending parties on the terms that the Sultan
            of Maskat should hold Bandar Ahbas on a reasonable payment.
               4.  Under no circumstances can His Excellency in Council countenance a resort to
            hostilities by cither party, and should the Sultan of Maskat commit aggressions on any
            of the Persian ports, the Resident should insist on the cessation of hostilities, pending a
            settlement of the dispute by mediation, for which the British Government have already
            tendered their good olHces. Meanwhile His Excellency in Council will await with interest
            the report of Colonel Pelly’s interview with the representatives of the Persian and Maskat
            Governments.
               5. With reference to the views expressed by Colonel Pelly in paragraphs 11 to 13
            of his letter of Qth May, His Excellency in Council cannot consider the stipulations in
            our Treaty with Maskat of 1798 for the exclusion of the French and Dutch from
            Gombroon and the establishment of an English factory there as affecting in any way
            the rights of Persia', nor can His Excellency in Council approve of intervention  on con-
            ditions which do not recognize the Sovereign rights of Persia over the territories
            embraced in the engagement of 1855. It is, therefore, immaterial whether in the new
            lease the clause excluding strangers be maintained, as that clause would in no way effect
            British subjects who have Treaty rights throughout the whole of the Persian dominions.
                115.  In the meanwhile the Government of Bombay had instructed Colonel
                                           Pelly not to object to the blockade of
             Political A., October 1868, Nos. 34-35.
                                           Bandar Abbas by the Sultan of Maskat,
            but to inform His Highness that, after the offer of mediation by the British
            Government, such action could not but be regarded as unfriendly. The Gov­
            ernment of India when apprized of this telegraphed to the Bombay Govern­
            ment to issue more emphatic instructions to that officer to leave nothing undone
            to prevent the threatened blockade, and to give the Sultan to understand that
            the British Government would withdraw all countenance whatsoever lrom him
            if he refused the proffered mediation.
                116.  On the 2nd August 1868, Colonel Pelly telegraphed to say that
            Maskat had placed the negotiations entirely in his hands, and that an explicit
            telegram had at length been received from the Shah, giving a general consent
            to an amicable arrangement of the matter. He himself was moving up with
            the Maskat Agent to meet the Persian Prince Governor of Fars at Shiraz, and
            matters, he thought, would probably be satisfactorily arranged if the Persians
            were reasonable in their demands.
                117.  From Colonel Pelly’s letter of a previous date, vis., 23rd May,
            No. 63, it appeared that the Sultan was willing to come to reasonable terms,
            though he denied that the terms of the lease of 1856 had lost their force, and
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