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Kuwait-1 rag Smuggling.—In spite of the work of the Iraqi Preven
tive .Service, which they had established in 1935, the Iraqi Government
continued to make complaints regarding goods being smuggled into Iraq
and incursions of Iraqi Customs ollicials into Kuwait territory and Kuwait
territorial waters continued. Doubtless some smuggling continues, as it
does across all frontiers all over the world, but there is no doubt that it
has considerably decreased, besides their Preventive Service on the fron
tier it would seem that the Iraqi authorities might well take more stringent
action in the various areas within their own territories (e.g., Basra, Suq
ash Sheukh, etc.) for dealing with the organisers of the contraband trade,
who arc Iraqi merchants.
.With regard to the Iraqi incursions. Hitherto investigation of such
cases had been carried out by Iraqi officials only. The unsatisfactory and
one-sided nature of such investigations is obvious, and towards the end of
the year a definite improvement was made by inducing the Iraq Govern
ment to associate with their ollicials the Political Agent, Kuwait (on behalf
of llis Majesty’s Government, and of His Highness the Shaikh of Kuwait),
in a particular enquiry into a series of some eight cases. It is hoped that
with this as a precedent future enquiries will be conducted on similar
lines. As in 1935, no reparation has been forthcoming from the Iraq
Government for any incidents.
The pearl season showed a slight improvement in catch and prices over
last year.
In January His Majesty King Abdul Aziz visited Kuwait and was
much pleased with his reception by His Highness the Shaikh. The royal
visit, however, made no difference to the severity of the Saudi blockade of
exports from Kuwait into Saudi Arabia. In spite of prolonged negotia
tions with the Saudi Government the blockade was in force at the close of
the year.
Bahrain.—The chief event of the year was the visit of His Highness
Shaikh Sir Hamad bin ’Isa A1 Khalifah, K.C.I.E., C.S.I., the Ruler, to
England. His Highness left Bahrain in June and returned in August.
During his stay in London for a fortnight he was the guest of His
Majesty’s Government and was accorded an audience by His Majesty. The
visit was a distinct success and His Highness returned exceptionally pleas
ed with the warmth of his reception.
There was a decrease in the year under review in the number of pearl
ing boats that set out, the catch was smaller and the market in Bahrain
duller than during the previous year.
In December the Bahrain Government published an Arms Ordnance
Proclamation for the regulation of the importation, exportation, posses
sion, manufacture and licensing of arms. This was simultaneously applied
by King’s Regulation No. 3 of 1936 to persons to whom the Bahrain Order
in Council applies.
The somewhat complicated question of a Nationality Law for Bahrain
was advanced to its final stages, and it was hoped that the Law would be
promulgated early in 1937.
Trucidl Coast.—Important developments in Aviation and- Oil connect
ed with this area have already been dealt with under these headings.
Outside these subjects the chief event of the year was the recognition
of Kalba as an independent Shaikhdom in treaty . relations with His
Majesty’s Government. This followed on the obtaining of air facilities
at Kalba already referred to.
Negotiations continued throughout the year with the Saudi Govcrn-
ment on ‘ the subject of the Trucial Coast—Saudi frontiers without a settle
ment being reached.
Muscat.—ITis Highness Saiyid Said bin Taimnr, Sultan of Muscat
and Oman, who had left Muscat in February 1935, for Dhofar, an outlying
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