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(ii)
In Kuwait the dispute between the Shaikh and the Kuwait Oil Company
was settled by the former agreeing to accept an advance against future royalties
to be paid back after production had reached a certain stage.
A concession to explore for sulphur in Kuwait was granted to The Eastern
Gulf Oil Company Limited, a company registered in Great Britain but whose
capital is wholly American.
Medical.—The Agency dispensaries at Bahrain, Muscat and Kuwait continue
to do good work. At Bahrain the attendance at the Agency dispensary increased
in spite of the additional facilities provided by the Bahrain State Hospitals.
The Sub-Assistant Surgeon in charge of the Government dispensary at Dubai
was invalided to India early in the year and his relief did not arrive until 29th
July. This dispensary has long been needed and attendance figures are on the
increase.
The Residency Surgeon visited the Trucial Coast during the year.
Kuwait.—Relations with Saudi Arabia have been cordial.
Shaikh Hafiz Wnhba, Saudi Minister in London, visited Kuwait on the 25th
February and started negotiations with the Political Agent with the object of
settling outstanding points connected with the agreements between Kuwait and
Saudi Arabia.
His Royal Highness Amir Saud visited Kuwait in the latter half of March.
A water supply company lias been formed to collect drinking water from the
Shatt al Arab for sale in Kuwait. There has been a considerable reduction in the
price of water.
Bahrain.—The Shaikh’s brother, Shaikh Muhammad bin Isa al Khalifah, very
unwisely boarded an Italian ship at Alexandria on the oth June on his way to
Beirut. He was landed at Malta until arrangements were made for his return
journey via Jcdda and Riyadh. He was in several air raids and is now the Family’s
expert on modern warfare.
A broadcasting station has been opened at Bahrain and broadcasts war news
and items of local interest.
A Defence Officer had been appointed to Bahrain but beyond taking precau
tions against sabotage and training the Local Defence Volunteers nothing was done
to make the oil field area secure from attack by air, as the Air Officer Commanding,
Iraq, who was in charge of the Persian Gulf defences considered this a remote
possibility. After the bombing on the morning of the 19th October, however,
various precautions were suggested and were well under way by the close of the
year, but nothing more than a token air defence was provided and the position
was most unsatisfactory.
A blackout has also been imposed.
Trucial Coast.—Shaikh Mani bin Rashid who had taken refuge at Sharjah was
finally persuaded to leave for India, and with the departure of others of his
adherents to Hira the tension between Sharjah and Dubai eased appreciably.
Muscat and Oman.—The outstanding event of the year was the birth of a son
and heir to the Sultan.
The Sultan visited India from 27th April to 12th July for medical treat
ment.
The Sultan visited the Batinch coast in August.
At the request of the Air Officer Commanding, Aden Command, the Sultan
granted additional facilities at Salalah.
In March Major A. 0. C. Pcttyfer, I. A., arrived and took over as Military
Adviser.
Towards the end of the year the situation in the Dhahairah deteriorated.