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                       of vantage. The Adviser wished to use the Police to protect the bazaar but
                       the Political Agent, advised him to disperse the mob, pointing out that ’they
                       had a Hank which could be turned. It was decided to attack them, and the
                       Indian Police .(who had instructions not to fire without orders) opened out and
                       advanced against the right Hank of the mob. For a few minutes the Police
                       made no headway and it looked as though they would have to fire or use the
                       bayonet, but then the divers began to give way, alnimcd possibly by the tiring of
                       the Naturs, which was controlled with difficulty, 'flic Police now began to drive
                       the mob along.the sea road and into the sea, being reinforced, as they went, by
                       Naturs, Shaiks’ retainers, Agency fan-ashes and others, and followed by the lorry.
                       The mob were finally all driven into the sea, then some four feet deep, and many
                       made their way to Muharraq in passing sailing boats. The Adviser followed them
                       in three launches with all available police but no further disorders occurred there
                       and the mob dispersed quietly to their homes. One sepoy was wounded, two
                       divers killed, probably by shots from the Naturs and three or four injured, but
                       not a single shot was fired by the Indian Police, whose behaviour throughout was
                       admirable.
                          Shaikh ITamad, for once in his life, dealt, firmly with the guilty, the fact
                       being that his temper was quickened by the insult that the divers had levelled at
                       his brother, Abdullah. Apparently as Shaikh Abdullah was returning to
                       Muharraq he met two boat loads of divers sailing over and ordered them back.
                       The canaille, however, merely scoffed at him and lifting up their clothing
                       shook their membra virilia at him, and the high wind carried them past before
                       he could do anything. This is the most offensive insult in Arab countries and
                       the usually mild Shaikh Hamad observed to his Chamberlain that had anyone
                       done that to him he would have “ Cut him down, no matter who he was, or
                       where he was *\
                          It was fortunate indeed that the trouble was settled with so little loss of
                       life, and good came out of evil, for the Bahrain Government regained at one
                       stroke, not only all the prestige they had lost over the inheritance proclamation
                       and more, but the divers, who had successfully raised their salafs by disorders
                       in the two previous years, learned a lesson that should not easily be forgotten.
                          22.  Oil Concession.—The Bahrain Petroleum Company Limited struck oil
                       on the 1st June and before shutting off the well obtained a flow of 70 Tons a
                       day. There is little doubt that they would have obtained an even greater flow
                       had they gone deeper, but as their concession stands at present, it did not pay
                       them to do so.
                          23.  The rig was dismantled and re-erected some two miles away on a fresh
                      site where drilling commenced on the 1st August. A second rig has been
                      brought from America and has been erected on yet a third site. The second
                      well has reached a depth of over 1,500 feet and traces of oil have been found.
                          24.  The Fields Manager is to move into Manamah and there is little doubt
                      that the Company are beginning to exert a considerable local influence. This
                      will undoubtedlv increase with their operations and their experience of Bahrain,
                      and'combined with the Arabian Mission, they represent a most unfortunate
                      intrusion of foreign influence into Bahrain.
                          25.  The Company engage all their Indian personnel in ’Iraq or locally, and
                      have not given them formal agreements. Thcv have alreadv exerted some
                      influence on trade and a number of American lines of goods have made their
                      appearance, despite the adverse rate of exchange.
                          26.  Artesian TVeils.—Water is still being wasted in incredible quantities
                      and Bahrain’s more valuable asset is being frittered away as though it was
                      inexhaustible. Towards the end of the year Major Holmes, the pioneer ot
                      artesian wells in Bahrain, addressed a long letter to Shaikh Hamad pointing
                      out the danger of squandering so valuable an asset and stating that certain
                      artesian wells have now tapped the lowest water holding strata. Shaikh v.?11!?
                      has promised to take action but will require to be pressed to deal with the
                      matter thoroughly as he himself and many of his relations are the. w?j0
                      offenders. A number of wells have been drilled very cheaply, at prices that -
                      not admit of proper lining and water is being lost in immense quantities un
                      the ground as well as running to waste in the sea.
                          27.  Agriculture.—The Agriculturist proceeded on leave, on the 28th August,
                      and his return is unlikely until finances improve. His work has shown 8
                      results, however, and not onlv have excellent cotton crops been raised, hj i
                      very good start has been made with fruit cultivation, and some excc
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