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per package on nil goods imported from abroad. A further delay prolonged
as required by the Political Resident but this was eventually accomplished
in November and the Political Agent was authorized to issue a Notification
making the tax, when formally announced by the Muscat Government, appli­
cable to British subjects. At the close of the year the publication of the tax
by the Muscat Government was still being awaited.
With the formation of a proper Municipality provided with adequate
funds which the new tax is expected to provide there seems a hope of some
measures for the sorely needed sanitation of Muscat and Matrah being put
into effect at long last. It should then be possible to make use of the fish
and meat markets and slaughter houses built in 1936 for the State at consi­
derable cost and trouble and which ever since their completion have been
lying unused.
5. Events in Oman.—Nothing of importance took place during the year.
An event which may eventually affect the Oman situation, i.e., the
visit of Shaikh ’Isa bin Salih, the right hand man of the Imam, to the Sultan
in Muscat in October, has been dealt with in Part I of this Report.
6. General communications.—In March Mr. W. Watson, Officer in
charge Cable and Wireless Ltd., was relieved by Mr. G. Gilby who remained
in charge for the remainder of the year.
7. Muscat Infantry.—Captain A. C. Byard, British Array, retired, was
in Command throughout the year. The discipline and efficiency of the Levy
continued to improve under his care.
8. State Finances.—The opening balance at the commencement of the
year showed a credit of 640,100. This figure, however, excludes debts due
by the State to local creditors which amount to Rs. 71,974. Compared with
last year a credit of Rs. 13,072 is shown. The financial position of the State
appears satisfactory.
R. P. WATTS, Major, I.A.,
Political Agent and H. B. M.'s Consul, Muscat.

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