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                                     CHAPTEE XXV.
                  Currency, Customs and Duties: Loans to the Sultan, 1903-04.

                              (i) Administration of the Sultan's Customs.
                 614. Tho Sultan took over in 1900 the customs administration himself,
                At to previoua Aiitory tte par«i% 306—MO•  and appointed two Mahomcdans who had
                Soorot E , Jnnoary 11*01, Non. 111*112.  experience of customs management at
             Bombay to supervise tho collection of the revenue.
                 Net revenue to the Sultan after working customs direct for one year was
             just under $ 190,000. Tho highest ligurc previously derived from Bale of customs
             was $ 170,000. The Sultan was disinolined to employ a British official, partly
             because at the time there was talk about the Russians taking over Bandar Abbas
             customs and tho French reports were echoed in Arabic papers that Maskat
             customs and with them tho State woro about to come under British domination,
             and partly from fear of abolition of personal and tribal indulgences.
                 615. In a question raised about tlie liability of importers to pay customs
                                            on goods transhipped at Maskat, the Sultan
                Exlernal A., Janaary 1901, N03. 41G-418.
                                            contended in their favour. The Govern-
             ment of India considered that the goods consigned from abroad to tbo agents
             at Maskat, with discretion to dispose of them locally or to find another market
             in neighbourhood, must be held to have roacbed their “ destination ” by deli­
             very to agents at Maskat. This was tbo strictly legal view. Tho Government
             of India thought however there should be no rule requiring that goods for
             transhipment or re-exportation from Maskat should be so declared in the mani­
             fest of a vessel or in bill of lading. If agents followed procedure laid down in
             6 (1) of the treaty of 1891 real intent thereof would be secured. Destination of
             goods, for practical purposes, was destination stated by agents. Jf the Sultan’s
             contention were admitted the trade of tho port would decline (letter No.
             2362-Ext. A, dated 21th December 1900).
                 616. The Sultan accepted the Government of India’s view and explained that
             the reason of his original objection was absence of a bonded warehouse and
             probable dishonesty of merchants, who were consequently allowed to keep the
             goods free of duty on their own premises pending re-exportation (Captain Cox's
             letter dated 5th February 1901. External A, April 1901, Nos. 11-12).
                 617.  In order to facilitate the collection of dues at Sur, where the inhabit­
                                            ants have always been very difficult to
               Maskat Administration Report for 19G1*0S.
                                            deal with in this connection, it was His
             Highness’s first idea to build a wall on tho land side, so as to restrict all import
             and export caravan traffic to the use of certain gates where the customs guards
             would be stationed On going into the matter on the spot, however, he realized
             that owing to the difficulty of obtaining materials,and labour at Sur itself, the
             building of a wall of effective length would take a year or more to complete,
             and ho therefore chose the more economical and speedy alternative of creating
             a line of blockhouses on tho bills between Sur-el-Bilad and the port of Sur,
             commanding tbo caravan routes from the interior. These were completed
             during his sojourn at Sur in November 1901.
                 618.  Tbo new system of customs administration was extended in 1902-03
                                            also to Gwadur. The revenue in Oman
               Aluakat Administration Report for 1902-03.
                                            customs in 1902-03 touched the highest
              figures that had yet been reached, there being an increase of one million dollars
              in the value of the trade as compared with past year.
                 619.  The wharf, which had been quite inadequate for the accommodation
              required, was enlarged by taking in more of the foreshore and roofed sheds
             were moreover erected on it for better protection of merchandise from the
              elements. At the same time suitable offices and warehouses were erected.
                 620. The new ateamor* Kuyul-liahr purohased by the Sultan would, it
              was hoped, facilitate the customs administration considerably.
                                   aoe paragraph 626 post.
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