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                          For the Inst year and a half the burden of administering the State has fallen
                      chiefly on Saiyid Said who has been confronted with not a few difficulties in the
                      overcoming of which he—notwithstanding his youthful age of 22—has shown
                      qualities of patience, tact and firmness. He seems to have a bent for finance
                      and economy with considering the financial difficulties with which the State—
                      ill common with all other countries—is confronted, should prove most useful.
                          12.  Saiyid Nadir bin Faisal, .His Highness’s brother, continued to take no
                      active part in State affairs throughout the year but has been present on State
                      occasions.
                          13.  Council of Ministers.—The composition of the Council during the year
                      was as follows :—
                          14.  President—Saiyid Said bin Taimur.
                         15.  The other members were :—
                         Finance Minister—Mr. S. E. Hedgcock up the 30th June when he left. The
                      post remained vacant to the end of the year and the duties were carried on by the
                      President with the advice of the Political Agent.
                         During the 6 months that Mr. Hedgcock remained at Muscat he reformed the
                     system of accounts and put the finances of the State on a sounder basis.
                         16.  Mr. B. S. Thomas, O.B.E., whose whereabouts were unkown when the last
                     report was submitted returned to Muscat via Dohah and Bahrein on the 6th March
                     1931 after having crossed the Ruba-al-Khali. He left for the United Kingdom
                     on the 14th March 1931.
                         17. Minister of Justice.—Shaikh Zubair held this appointment throughout
                     the year.
                         18. Finance.—The serious financial situation of the State at the end of 1930
                     was indicated in paragraph 15 of last year’s Report. During the course of 1931
                     economies were effected in all branches of the administration and the surplus on
                     the year’s working came to Rs. 42,835. During the year Rs. 40,000 were paid
                     towards the Government of India loan, and the remainder of this loan will be
                     liquidated in the course of 1932. Debts due to merchants will be paid off in 1933-
                     34. If conditions are reasonably favourable the State should be completely solvent
                     by the beginning of 1935.
                        Considering the world wide trade depression which has of course affected
                    Muscat most adversely, and particularly the fact that by its foreign treaties the
                    Musat. State is unable, like other governments, to increase its taxes on its principal
                    source of revenue, i.e., Customs dues on imports which still remain at the very low
                    figure of 5 per cent, (though negotiations arc in progress to change this state of
                    affairs), the present financial condition of the State can be considered as satisfactory'.
                        19. Star.—The improvement in the general conditions at Sur described in last
                    year’s Report was continued in 1931. During the summer Saiyid Said paid several
                    visits to Sur, and with the support of the officiating Political Agent, and helped
                    by the fact that his visits were made in II. M. sloops thus creating a good moral
                    effect, succeeded in establishing more or less complete administrative and Customs
                    control over Sur, that is to say over the Jcncbeh elements of the town, which result­
                    ed in a continuance of law and order and in a distinct rise in the Customs collections
                    for the year. Inspite of Shaikh Ali-al-Hamudah, the Chief of the Bani Bu Ali,
                    who had the effrontery to forbid the building of a new Customs House in Sur, this
                    building was erected on a suitable site opposite Aiqa. The Bani Bu Ali elements
                    in Aiqa, however, instigated by Shaikh Ali, remained intransigent, refused to pay
                    Customs dues, and on the occasion of a visit to Sur by Saiyid Said, accompanied by
                   the officiating Political Agent, in October, refused to obey his orders to meet him
                   for a discussion.
                       20.  This brought matters to a head, and as immediate action the “ A1 Saidi ”,
                   the State gun-boat, was authorised, to put to sea and intercept such Aiqa dhows
                   as she could find, some of which were at that time returning from Basrah. One
                   dhow was duly intercepted and brought into M uscat.
                       21.  It was realised, however, that much more serious steps might have to be
                   taken before the Aiqa question could be successfully solved. This question had
                   indeed become a first-class issue as far as the State was concerned both from the
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