Page 649 - PERSIAN 8 1931_1940_Neat

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No administration can consider this sum as an adequate reserve, and it would
not be considered as an adequate working balance in most Colonial Administra­
tions. Only its. 1,59,932-14-0 of this amount is “ ready” money, which it is
possible to utilise as a working balance. The result has been that during Ihe
vear under review there has been more than one occasion when the monthly
'receipts have not been sufficient to meet, the monthly salary bill and recourse has
had to he made to local business men for temporary loans. On one occasion
h’s. 25,0(H) wore obtained from the State account in a Bombay Bank to moot
current expenditure. The State has not been able to pay anything towards the
redemption of a debt of Rs. 71,203 which has been owing to Messrs. Khan Baha­
dur Nasib and Son for some years, and it is more than probable that fresh loans
have been obtained from Stale subjects. The financial position is better than it
was last year, but is, however, still unsatisfactory. The State has no reserve
worthy of the name and no working balance, nor is there a margin for much
needed educational and public health measures. A serious shortage of rain
affecting the date crop, or other unforeseeable disaster, and the State will be in
serious difficulties. It is difficult to see how further economics can he introduced.
Expenditure has been reduced to a minimum. The Customs Tariff has been
revised and duties have been increased. The new duties will come into force
gradually in 1940 and may result in a satisfactory balance on the credit side
at the end of the year. A further diminution in the Gwadur revenue is anti­
cipated and there will probably be a fall in Imports at Muscat, due. to world
conditions and the abnormal imports in the last quarter of this year so that the
yield from the increased duties may only he sufficient to maintain the estimated
figure in the 1910 budget. The Director of Customs with this possibility before*
him has been careful not to budget, for an increase in Customs revenue during
1940. llis estimate is the same as the 1939 estimate. As no new sources of
revenue are apparent the State must just carry on and hope that no act of God
or the Sultan’s enemies will precipitate a financial crisis.
7. Tl'or Measures.—The Sultan has identified himself with the Allied cause
mid has repeatedly expressed his friendship for Great Britain and his earnest,
wish that llis Majesty’s forces may speedily prove successful. He has pro­
vided all facilities asked for without question. An agreement has been entered
into with the Sultan by which lie has undertaken to grant such facilities as His
Majesty’s Government may require for the Royal Navy and for the Royal Air
Force. In return he received a present of arms and ammunitions and a grant
of Rs. 30,000. He has also been allotted a financial subsidy designed to enable
him l«j undertake certain defence measures, which the outbreak of hostilities in
Europe has indirectly rendered desirable and which the grant of the aforesaid
facilities may in the future make essential. The Sultan lias issued notifications
iorbidding any trading with the enemy and making it an offence to do. any act
which may in any way be adverse to the interests of His Majesty’s Government
in their prosecution of the war.
Local measures have been taken to prevent profiteering and to maintain a
three months reserve of essential food-stuffs. The export of silver has been
forbidden with the object of conserving the already inadequate supplies of
Maria Theresa dollars.
The Sultan has under consideration the installation of wireless telephony
at. bur, Soliar, Dhofar and Muscat to enable him to keep in close touch with the
principal governors.
The strength of the Levy is to he more than doubled and recruiting has
already been started.
A survey of the Batinali fortifications lias been carried out and the long over
due repairs to strong points are to bo undertaken as soon as ixossiblc.

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