Page 476 - PERSIAN 8 1931_1940_Neat

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The Kuwait Oil Company continued drilling throughout the year without
success, but early in 1938 found oil in quantities which indicated the prcsenco
of a largo held.
The Californian Arabian Standard Oil Company continued their opera­
tions throughout the year in Hasa without any signal success but early iu 1938
struck oil in hopeful quantities.
Kuwait.—No advance was made during the year towards the settlement
of the difticult question of the Shaikh of'Kuwait’s date gardens in Iraq.
With regard to Kuwait-Iraqi smuggling the decrease reported for 1936
was maintained. When the Saudi blockade is removed (see below) the Shaikh
of Kuwait is willing to enter into negotiations with the Iraqi Government on
the smuggling question.
As regards Iraqi incursions these decreased somewhat in number but a
serious incident occurred on October 15th when, according to evidence collect­
ed by the Political Agent, Kuwait, on the spot, Iraqi police attacked Kuwait
tribesmen many miles within Kuwait territory. The incident was under
representation to the Iraq Government by His Majesty’s Ambassador, Bagdad,
at the end of the year. As in 1936 no reparation has been forthcoming from
the Iraq Government for any incursions.
The Saudi trade blockade of Kuwait continued but towards the end of
the year there were some signs that as a result of negotiations with the Saudi
Government agreement would be reached on this question.
The pearl season shows a slight improvement over the previous year in
catch and in price.
Bahrain.—The most important event of the year, which excited strong
feeling in Bahrain, was a dispute which broke out in April between the Rulers
of Bahrain and Qatar on the subject of the ownership of Zubara, a piece of
coastal territory in Qatar, which had long been a cause of contention between
the two Shaikhs. This dispute resulted in the forcible subjugation by the
Shaikh of Qatar, after some slight armed resistance, of the Naim tribe, over
whom, as well as over Zubara, the Shaikh of Bahrain claimed sovereignty.
The Shaikh of Bahrain referred the matter to His Majesty’s Government who
replied in brief that, oh the evidence before them, His Highness the Shaikh of
Bahrain had no claim to Zubara.
As a retaliation for the action taken by the Shaikh of Qatar, the Shaikh
of Bahrain withdrew the concession of reduced transit dues hitherto accorded
to Qatar, and prohibited the entry of Qatar subjects into Bahrain. These
measures remained in force at the end of the year.
There was an improvement, both in catch and in price, in the pearl
industry.
With the approval of His Majesty’s Government the Bahrain Govern­
ment promulgated a Nationality Law and a Property Law, which were applied
by King’s Regulation to persons subject to the Bahrain Order in Council.
The provisions of the former specified the classes of persons possessing
Bahrain nationality, and prescribed the procedure for the acquisition of Bahrain
nationality, or the retention of their own, by foreigners born in Bahrain.
The latter enacted that foreigners in Bahrain, whose Governments prohibited
in their respective territories the ownership of immoveable property by persons
other than their own nationals, might by notification be prohibited from owning
such property in Bahrain. The only foreigners to whom the prohibition has
so far been applied are nationals of Iran.
His Royal Highness the Amir Saud, the Heir-apparent to His Majesty
King Ibn Saud, visited Bahrain in December. His Royal Highness was much
pleased with his reception and his visit undoubtedly tended to increase cordial
relations between Saudi Arabia and Bahrain.
Trucial Coast.—Negotiations on the subject of the Trucial Coast-Saudi
frontiers continued throughout the year with Saudi Government without a
settlement being reached.
Muscat.—In February, the Sultan returned from Dhofar to Muscat,
from which he had been absent for a long period.