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                      This suggestion would not be practicable unless the whole diving industry co
                      operated. Jn order to prevent the introduction of Japanese cultured peaadj
                      special legislation was enacted by the Bahrain Government in so far as it affect-
                      ed their subjects, and by His Majesty’s Government in so far as it affected
                      British subjects and foreigners who arc under the jurisdiction of the Political
                      Agent. Advantage was taken of this legislation to punish certain offenders
  I                   Other .Rulers of the Arab Littoral were asked to co-operate in the matter which
                      ill view of the adverse effect that the introduction of cultured pearls would have
                      on the pearl trade, is a vital one for the large body of people whose livelihood
                      depends on the pearl industry.
                         Muscat.—No events of any great political importance took place in the
                      State during the year under review. The outstanding problem of Muscat was
                     that of finance. The Sultan assisted by his Financial Adviser—Captain Alban
                     who left in June, made praiseworthy and successful attempts to curtail  expen­
                     diture and at the end of the year there was a small surplus in the Treasury.
                                                 Persian Side.
                         Apart from a few isolated cases of robbery with violence the Persian coastal
                     region as far as Bandar Abbas was quiet and security on the whole good.
                         Persian Mekran and Bashakard were the scene of disturbances and.spas­
                     modic fighting throughout the j^ear. In spite of occasional successes the Per­
                     sian troops were unable to overcome entirely several of the smaller tribal
                     Chiefs who continued to hold out in their mountain and desert strongholds.
                         The inhabitants of these regions were evidently harshly treated by the
                     Persian military forces as large numbers of tribesmen with their families went
                     over to Kalat, Gwadur, British Baluchistan and even the Arab Coast.
                         The Persian Navy occupied itself with its chief duty of preventing
                     smuggling by sea and made a number of captures of sailing craft alleged to be
                     engaged in that occupation. In several cases, however, the zeal of the Com­
                     manders appeared to have overcome their discretion and Arab vessels encoun­
                     tered on the High Seas were interfered with, some being taken to Persian
                     ports for investigation. Various of these cases are still under discussion with
                     the Persian Government.
                         Basidu.—H.M.S. “ Bideford ”, while paying a visit to British Basidu on
                     the 5th August 1933, found that the Union Jack was not flying. The Captain
                     landed an armed party and re-hoisted the flag. From local enquiries it appear­
                     ed that the Persian Warship “ Palang ” had put in to Basidu a few days pre­
                     viously with a party of officers who had hauled down the flag. The incident
                     was reported to His Majesty’s Minister at Tehran who took up the matter with
                     the Persian Government. After lengthy correspondence the Persian Government
                     expressed their regret at the incident.
                         While discussions were still proceeding a further occurrence took place at
                     Basidu. The Mudir of Customs of Persian Basidu. in spite of previous  waru-
                     ings, had hoarded and examined dhows anchored off Basidu in what is claimed
                     to be British waters. The facts being reported to the Officer-in-Chargc of the
                     armed party in oceunation of British Basidu, he ordered his arrest and put him
                     on board H.M.S. “ Lupin ”, which was at the time visiting the place. The
                     Mudir was later conveyed to Bandar Abbas and released. This incident con­
                     tinued to be the subject of active correspondence between His Majesty’s Gov-
                    'erament and the Persian Government until the close of the year.
                        Relations with local Persian Officials.—Relations with the Governor of the
                     Southern Ports—Aqa Ali Asghar Khan Taliqani—and his successor Muhain-
                     mod Ali Mirza Rokni, who was in temporary charge of the office from October
                     to the end of the year, continued to be most cordial.
                                                           T. C. FOWLE, Licut.-Colonel,
                                                       Political Resident in the Persian Gulf.
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