Page 405 - PERSIAN 8 1931_1940_Neat

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REVIEW.

ARAB SIDE.
RETROSPECT, 1926—1936.
The Arab side of the Persian Gulf has shown so many changes of late
that it may be of interest to give a picture of it 10 years ago aud as it is
now. A decade ago there was no Air Route on the Arab side (Imperial
Airways had just reached the Gulf but were operating along the Persian
Coast), no oil had been discovered in that area, and the Naval Base for the
Persian Gulf Division was at Henjain in Persian territorial waters. Iraq
was still a Mandate under British control and there were no Kuwaiti-Iraqi
problems of much importance. His Majesty King Abdul Aziz was still
busy consolidating his conquest of the lledjaz, and nearer home in Nejd
was engaged in promoting the Aklnvan movement and forming Akhwan
colonies. Saudi Arabia in fact had little concern with the Arab Shaikh-
doms of the Gulf.
Nowadays the Imperial Airways route to India and beyond lies along
the Arab Coast, and several overland routes from Europe to the East by
air, train and car, which have been opened up through the Middle East,
connect with the Persian Gulf. There is a large and flourishing oilfield
at Bahrain, others at Kuwait and Qatar which are being explored by the
Companies concerned, and still other potential field's on the Trucial Coast
and in Muscat which are the subject of negotiations. In this connection
the construction of a refinery by the Bahrain Petroleum Company in Bah­
rain, which will be in full operation before the end of 1937, is a matter of
considerable importance since our present supply of oil from the Persian
Gulf is in a foreign country, e.g., Iran. In case of war, with Iran neutral
the supply of oil from this source might be difficult, and with Iran hostile
it might cease altogether, at any rate for a time. When the Bahrain refin­
ery is working, even under peace conditions the Sloops of the Persian Gulf
Division will be able, if it is so desired, to procure their oil at their base
in Bahrain instead of from Abadan. Amongst other results of oil develop­
ment is a startling increase of foreign population at Bahrain, where a
decade ago there were some dozen Europeans and where there are now
something like 300 Europeans and Americans. It is a point of some
importance that the concessions granted by the Shaikhs to the Oil Com­
panies contain a clause that preference, whenever technically possible,
should be given to British subjects. Many of these, including British
Indians, are actually employed at Bahrain (for present figures see Oil
Interests 1936 below), and as the new oilfields develop, will be employed in
increasing numbers. The Naval Base is now also at Bahrain with a subsi­
diary base at Khor ICuwai in Muscat territory. Iraq is an Independent
State and many important Iraqi-Kuwaiti problems have arisen. King
Abdul Aziz has consolidated his Saudi Kingdom, which has caused him to
look towards the Gulf for further expansion. The discovery of oil in the
Arab Shaikhdoms has increased his ambitions in this direction, and, in
regard to the Trucial Shaikhdoms, whose frontiers with those of Saudi
Arabia have never been delimitated, has given rise to long and complicated
negotiations. At Kuwait there is the vexed question of the Saudi trade
blockade, and with Bahrain until recently, when they were settled, certain
questions of transit dues on goods to Saudi Arabia.
To sum up. During the comparatively short period of 10 years, from
the communications point of view the Gulf has changed from a cul-de-sac
to an highway between East and West; from the resources point of view the
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