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             India. When leaving Muscat His Highness announced his intention of
             returning in April and arrangements, at his request, were made for a
             Tanker of the Anglo-Iranian Oil Company to call in for him, but he has
             since written to say that he intends to stay on in Dhofar until the autumn.
                 It appears as if His Highness’s inclination is to follow in the footsteps
             of his father, Saiyid Taimur, and somewhat neglect the alTairs of his State
             and devote most of his time to personal amusements. He is engaged in
             re-building and deeprating his house in Salalah where he has just installed
             electric lighting and refrigeration. His Highness’s time in Dhofar is
             chiefly occupied in carrying out improvements to his house and personal
             property, proceeding on hunting expeditions in the near neighbourhood,
             experiments in cultivation and generally in the pursuits of a country gentle­
             man. Many riding horses, motor cars, cinema and radio installation and
             a Court Jester, all taken down from Muscat, complete the amenities of life
             in Dhofar.
                 The vast majority of the inhabitants of Muscat and Oman are so
             poverty stricken and occupied with earning their daily pittance that the
             prolonged absence of their Sultan means nothing to them. The small com­
             paratively well to do community are exclusively engaged in trade and
             interested in nothing else. Real resentment and discontent at the Sultan’s
             neglect of his capital and his government is confined to the Ruling Family
             whose dislikes and jealousies amongst themselves, however, prevent them
             from effectively combining to undermine the Sultan’s authority, a measure
             which they are all desirous of accomplishing. It is rumoured that the
             Sultan recently withdrew Rs. 2,00,000 from the State Funds in the Bank
             at Bombay to cover part of his expenses while at Salalah. This act is greatly
             resented by the Ruling Family who consider the money belongs to the State
             and is not for the personal use of the Sultan.
                 (b)  Saiyid Hamad bin Faisal, one of His Highness’s uncles, who had
             held the post of the Wali of Matrah since he was removed from the governor­
             ship of Sohar in 1930, was relieved for his duties when he returned from
             India in August on the pretext of his ill health. The real cause of his
             discharge was that His Highness had received numerous complaints of his
             neglect of his duties and his ill-treatment of people.
                (c)  Saiyid Mahmud bin Mohammad bin Turki, a cousin of His High­
             ness was appointed and continues to be the Wali of Matrah.
                (d) Saiyid Nadir, th<? senior uncle of His Highness, has, as in the past,
             maintained friendly relations with the Sheikhs and the Imam of Oman, with
             whom he maintains a constant correspondence. He refuses to take any
             interest in State affairs owing to his continuing to nurse a grievance over
             the reduction made in his allowance in 1933.
                (e) Saiyid Shaliab bin Faisal, the favourite uncle of His Highness, re­
             presented the Sultan whenever he was absent from the capital. He has
            shown himself to be a capable and strong administrator and appears to be
            genuinely interested in his work. To the somewhat limited extent of the
            authority delegated to him he has always been willing to co-operate with the
            Agency and is invariably pleasant and friendly to deal with.
                2. Financial A dviser.—'The Director of Revenues remained  practically
            in charge of financial affairs of the State throughout the year though the
            control of the finances was nominally in the hands of His Highness.
                3. State Finances.—The opening balance at the commencement of the
            year showed a credit of Rs. 2,73,433-2. This figure', however, excludes
            debts due by the State to local creditors which amount to Rs. 72,000. Com­
            pared with last year an increase of Rs. 1,07,695-7 is shown. This financial
            position can, for Muscat, be described as distinctly satisfactory. The chief
            causes contributing to this result were (1) continued effect of the reduction
            in the Civil List and other economies made in 1933, (2) increase in the import
            trade and (3) increased yield in the Customs duties which were raised in
            1934.
                The Arms Traffic Subsidy was continued for 1935 on the informal
            understanding made with the Sultan by means of a “Gentleman’s Agree­
            ment” that the whole amount should be expended on social services and
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