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The Council na n whole appear to function fairly effectively though com-
*. oni h h°u * <**•■»
2. Slate Finances.--It is not possible within the confines of this report
to enter into a lengthy digest of (lie Stale Finances and it will suffice to give but
a brief resume ot the situation as it now stands.
The opening balance at the commencement of the year showed a working
credit (exclusive of debts due from the State to local creditors) of Its. 90,400. *
By virtue of a considerable tightening up in the system of revenue collec
tion, and by the enforcement of rigid economy and retrenchment, including a
further reduction in July 1933 of the Civil List expenditure, the receipts for
1933 show an increase of Rs. 10,834 over the previous year, whilst expenditure-
has been decreased by Rs. 32,449.
The actual surplus of Receipts over Expenditure for 1933 amounts to
Rs. 1,07,881, which compares favourably with the surplus of Rs. G4,598 in 1932.
A close scrutiny of the State Budget proposals for 1934 would seem to show
ample scope for yet fuither economy in expenditure without impairing the effi
ciency of the Administration.
In 1935 the Arms Traffic subsidy, amounting to Rs. 1,00,000 ceases. It is
clear therefore that to compensate for this large loss and to regulate the debts
due to local creditors, further economics will have to be effected and further
means devised for increasing the State revenues.
Neither problem should prove impossible of solution, particularly in view
of the sanction recently obtained from certain Governments in Treaty alliance
with the State for the revision of Import duties.
3. Events of Political Interests in State Limits.—In February the Political
Agent accompanied by Saiyid Mahmud, deputed by His Highness for the pur
pose, proceeded to Sur to interview Sheikh Ali bin Abdullah of Jaalan on his
contumacious attitude towards the State {vide Administration Report for 1932).
Inspite of a full exposition of the situation and the greatest patience dis
played by the Sultan, the Sheikh has failed to see reason and consequently his
allowances have been held in abeyance.
During the course of the year the State have had cause to lodge a protest at
the infringement of Muscat territorial waters by an armed Persian Government
dhow which anchored off Khassab, with a captured dhow in tow in June. The
subject of the protest has elicited a categorical denial of the facts from the Per
sian Government.
Apart from a certain alleged uneasiness in the Batinah in November during
the collection of Zakat revenues peace has prevailed throughout the Sultanate
throughout the year, and no incidents of a political significance have occurred.
4. Events in Oman.—There have been no events of outstanding importance
during the year.
The usual crop of minor inter-tribal squabbles are reported but these have
in no way repurcussed on Muscat.
5. Trade and General.—This subject has already been dealt with elsewhere
in this Report.
fi Muscat Infantvu.—Command of the Muscat Infantry remained with Cap
tain R. G. Alban till the latter officiated as Political Agent from 24th March
when it devolved on Subndar Major Fateh Khan.
The main occupation of the Corps during the hot weather and till the open
ing of the leave season in August was the construction of a new Customs jetty
for the State.