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                  Tho Sultan’s official visit (the first he has paid to India) can be described
              ns a great success. Thanks to tho excellent arrangements made by tho various
              Departments concerned everything went ofT without a hitch and His Highness
              it seems was genuinely impressed with tho treatment he received and grateful
              for all tho trouble taken to ensure his comfort and amusement.
                  On 30th November the Sultan left Bombay via Singapore for Japan
              where he intends to stay about one month with his father, Saiyid Taimur bin
              Faisal, late Sullan of Muscat and Oman, who has settled down in that country
              and is living at present at Kobe.
                  From Japan the Sultan proposes to proceed to the United States of
              America where his visit to Washington will be official and where ho will be
              the guest of President Roosevelt. After leaving the United States of
              America the Sultan is to pay an official visit to England in March and probably
              to Franco later on. It is possible he may visit Germany and Italy privately
              on his way back to Muscat, which he hopes to reach early in May 1938.
                 (6) Saiyid Nadir.—The Senior Member of the Ruling Family, as in re­
              cent years, took no part in State affairs but invariably was present at all
              official functions.
                 (c) Saiyid Shahab, who is a “ real ” uncle of the Sultan, acted as the
              latter’s Representative on the various occasions during the year when he
              was absent from the State. During the Sultan’s presence in Muscat Saiyid
              Shahab as previously occupied no particular office. In March he proceeded to
              Karachi for Medical treatment and returned to Muscat towards the end of
              May.
                 (d)  Saiyid Hamad, who had been removed from the post of Wali of
             Matrah in 1935, was reinstated in that appointment by the Sultan when the
             latter returned to Muscat from Dhofar in February and at the end of the
             year was still in that office.
                 (e)  Saiyid Mahmud, who had relieved Saiyid Hamad as Wali of Matrah
             in October 1935, was removed from the post by the Sultan in February since
             which time he has taken no part in public life. His removal from the Wali-
             ship of Matrah is believed to be due to his general inefficiency and lack of
             interest in his work which resulted in an appreciable loss in the revenue and
             other receipts of the Town.
                 2.  Financial Adviser.—While at Delhi during his official visit to His
             Excellency tho Viceroy the Sultan expressed a desire to obtain the services
             of a suitable officer as Financial Adviser which post has now been vacant for
             several years.
                 3.  Trade and General.—This subject has already been dealt with in
             Part I of this Report.
                 4.  Municipal Taxation.—Under Article 19 of the 1891 Treaty of Com­
             merce, Navigation and Friendship His Majesty’s Government had agreed in
             principle to the payment under certain conditions by British subjects of Muni­
             cipal Taxes in the towns of Muscat and Matrah. So far back as the early part
             of 1935 a King’s Regulation (No. 1 of 1935) had been issued announcing that
             conditional upon the prior approval of the Political Resident, Muscat, Gov­
             ernment Municipal Taxes could be imposed on those persons subject to the
             Muscat Order in Council of 1915. On publication of this King’s Regulation
             the Muscat Government were requested to form proper Municipalities for
             the towns of Muscat and Matrah and to draw up a scheme of Municipal
             taxation for the approval of the Political Resident. Owing principally to
             the prolonged absence of the Sultan for nearly a year and a half in a remote
             and inaccessible part of his dominions and also to the inability of the State
             officials to draw up a suitable scheme of taxation no progress was made in
             the matter until His Highness’s return to the Capital early in the year.
                 Owing to the lack of experience and proper organization in the State
             Administration it was found impossible to work out the usual form of muni­
             cipal taxation and a proposal was then put forward by the Sultan and
             ultimately agreed to by the Political Resident to impose a tax of one anna
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