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REVIEW.
ARAB SIDE.
General.—In the Review of the Administration Report for 1936 a Retro
spect of the years 1920—1936 was given which indicated the considerable
changes which had come'about during that decade on the Arab side of the
Persian Gulf. A. summary of these changes was given as follows :—
“During the comparatively short period of 10 years, from the commu
nications 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 discovery of oil in an area under our control
is of considerable strategical importance ; while from the inter
national point of view the relations of the Arab Shaikhdoms with
their neighbours have increased considerably in importance and
complexity.”
During the year under review the Arab Side has if anything increased in
importance by the multiplication of the Imperial Airways Weekly Services,
and by—to anticipate the events of 1937—the finding of oil at Kuwait, and in
Saudi territory at Hasa; From the international point of view the relations
of the Arab Shaikhdoms with their neighbours show no signs of decreasing in
importance.
Royal Navy.—The sloops of the Persian Gulf Division continued their
useful duties on the'Arab coast and frequently transported the Political Resi
dent and- political officers under him on their tours.
Aviation.—The’Royal Air Force continued to maintain the strategical
air route on the Arab coast. They made numerous routine flights, and, on
requests, carried political officers on their duties.
The Imperial Airways services were increased from two to four services a
week under the Empire Air Mail scheme. In connection with this scheme air
facilities were obtained from the Shaikh of Debai and negotiations were opened
with the Rulers of Bahrain and Muscat for the revision of the Civil Air Agree
ment.
Oil Interests.—In June, under the auspices of the Political Agent, Muscat,
two concessions covering the territory of the Sultan of Muscat and Oman were
obtained by Petroleum Concessions Limited.
With the assistance of the political authorities and after prolonged nego
tiations, Petroleum Concessions Limited procured concessions from the Shaikhs
of Debai and Sharjah, and negotiations continued with regard to the
remaining Shaikhdoms.
In Qatar drilling operations continued.
The Bahrain Petroleum Company Limited completed the construction of
their refinery, and had an even more successful year than- during 1936, when
600,400 tons of crude oil and 9,200 tons of fuel oil were exported. During the
year under review the total production of oil was 1,061,347 tons. The total
personnel of the Company for the last three years is as follows:—
1935. 1936. 1937.
Americans 49 163 126
European British subjects 26 167 308
Indian British subjects . 61 323 214
Bahrainis 1,283 3,747 3,304
f Iranians
Othoro V Iraqis } 244 668 688
^Kuwaitis, etc. .
Total , 1,663 6,038 4,640
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