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8      REVIEW BY THE POLITICAL RESIDENT IN THE PERSIAN GULP.

                           the Shaikh, which is now as cordial as it is ever likely to be in the case of Shaikh
                           EBa ; on the other hand the atmosphere prevalent in the sphere of general politics
                           has made it advisable for us to postpone forward action for the time through-
                           out the Gulf region, and, in Bahrein, to leave for a more convenient juncture
                           the disposal of several important questions which might otherwise have
                           been found possible of earlier adjustment.
                               The Political Agent’s report is comprehensive and calls for little detailed
                           comment.
                               It will be noted with satisfaction that the volume of trade of the port of
                           Manama is still on the increase ; but that the pearl market last season was very
                           Black, with the result that several large speculators in pearls from Bahrein and
                           the Arab Coast lost heavily, including Shaikh Jasim bin Thani of Katar who
                           is believed to have bought pearls, with borrowed money to the value of 80 lakhs
                           of rupees and to have burnt his fingers badly in getting rid of them.
                               Ahmed bin Salman, the notorious outlaw of the Bahrein family, still flourishes
                           undismayed, but during the past season did not succeed in effecting any serious
                           depredations.
                               It is unsatisfactory to find that Bahrein is quickly establishing its reputa­
                           tion as a convenient entrepot for the distribution of contraband arms through
                           the small ports of the Persian littoral. No doubt there was always reason to
                           believe that a certain amount of arms did filter across from Bahrein, bur the
                           investigations of the past year indicate that in spite of the disingenuous complaint
                           in connection with the Arms Trade formulated by Shaikh Esa in the memorial
                           submitted by him to Government in October 1906, an organised industry on a
                           considerable scale now exists, and even warrant the conjecture that the existence
                           of this lucrative contraband trade not only in arms but other highly taxed or
                           contraband articles is one of the main factors of Shaikh Esa*s extraordinary un­
                           willingness to allow any supervision or revision of his Customs Administration
                           even on terms which prima fucie would be extremely advantageous to him.
                               Shaikh All bin Ahmed after repeated but ineffectual endeavours to obtain
                           permission to return to Bahrein appears now to have become more resigned to
                           exile ; and certainly little interest is taken in his affairs in Bahrein itself.

                                                        X.—KOWEIT.
                               Hitherto our policy in regard to Koweit has necessarily been conducted
                           on cautious and indulgent lines, the endeavours of the local officers
                           being directed towards gaining the Shaikh’s personal confidence and gradually
                           strengthening British influence with him and his subjects ; rather on the prin­
                           ciple of casting bread upon the waters that it may return to us again when
                           we are more in need of it. Meanwhile Shaikh Mubarak maintains his reputa­
                           tion as the most astute and longsighted chief in these waters, and although he
                           is undoubtedly inclined to be capricious in business matters, it is impossible for
                           the Resident and Political Agent to maintain with him that influence which may
                           at anv moment prove an important asset, except by taking the risk of imposing
                           a certain measure of frank confidence in his good faith and in the continued
                           existence in his mind of the firm belief that his interests are identical with those
                           of the British Government and that he must look to them for advice and support
                           in his difficulties.
                               So far. in spite of some minor disappointments and occasional scares, generally
                           emanating from Turkish sources, he has not given serious, cause for anxiety, and
                           though his absence from Koweit last year (ostensibly m connection with the gro-
                           vous  illness of his son) during Admiral Sir Edmund Poe’s visit was no ou
                           open to misconstruction, yet the exceedingly frank and substanUal welcom
                           which he accorded to Commodore Sir George Warrender and the Ef®denr^
                           after the close of the present year shows clearly enough that our relaaons ^
                           him are fundamentally healthy and our policy towards him directed along tfc
                           right lines.                                                   _ ..
                               For the same reasons that have influenced us in other directions Mdehc**
                           external questions affecting Koweit have been left in convenient abeyance.
                           Thns it is that the Shaikh’s jurisdiction m the direction of *
                           dullah still remains undefined and that exiguous Turkish garriao  are still
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