Page 475 - PERSIAN 8 1931_1940_Neat
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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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