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                        (H) Re-cstabllshment of telegraph 9tatlon at Henjam.
               a 15. Our attention in igoi and 190a was occupied in the discussion of the
           question of a naval base in the Persian Gulf, and the strategical value of a telegraph
            line to Bandar Abbas and Bassidore in this connection was kept in view. A con-
           venient way of settling the question of a cable to Bandar Abbas occurred to the
            Government of India, that is by re-establishment of our telegraph station at Hen-
           jam by which we could easily connect Bandar Abbas with the Persian Gulf tele­
           graphs. The proposal was explained in the following despatch (No. 56, Secret—
            External, dated 7th May 1903) to the Secretary of State :—
               “ Wc havo the honour to invito Your Lordship's attention to the correspondence
           ending with the Viceroy's telegram, dated the aoth March 1901, regarding a proposal
           for the connection of Bandar Abbas with the Indo-European telegraph system. The
           reasons which at that time led His Majesty's Government to consider the opportunity
           unfavourable for the execution of the project have since passed away, and wc now again
           desire to put forward the scheme, modified in certain respects as the result of further
           investigation of the entire question of telegraphic communication in the Persian Gulf.
               3.- Your Lordship is doubtless aware that, previous to i8St, one of the telegraph
           cables which now pass through the Straits of Ormuz to the south of Henjam, lay in the
           channel to the north of that island, on which, from 1869 to 188■, there was a station of
           the Indo-European Telegraph Department. The idea having occurred to us that the
           re-establishment of this post might provide the easiest means of connecting Bandar Abbas
           with the telegraph system, wc ascertained from the Director of the Persian Gulf Telegraphs
           that either of the cables could again belauded on the island without difficulty, and
           we subsequently asked him to furnish an estimate of the cost of such diversion, and of a
           connection from Henjam to Bandar Abbas. A copy of our letter and of his reply are
           enclosed with this despatch. It will be seen that four varying estimates of cost are given—
                (1) Taking (n) the larger estimate for the
                     diversion to Henjam, and (£) connection
                     between Henjam and Bandar Abbas by
                     cable all the way              nr     Rs. 2,78,096, or £18,539
                (a). Taking (a) the smaller estimate for the
                     diversion to Henjam, and (£) connection
                     between Henjam, and Bandar Abbas, as
                     in (i), by cable only ...             Rs. 2,29,796, or £15,3*9
                (3)  Taking (a) the larger estimate for the
                     diversion to Henjam, and (3) connection
                     beteen Henjam and Bandar Abbas partly
                     by sea and partly by land across Kishm  Rs. 2,35,830 or £15,055
                (4)  Taking (a) the smaller estimate for the
                     diversion to Henjani, and (d) connection
                     between Henjam and Bandar Abbas as
                     in (3)1 *•*•) partly by sea and partly by
                     land       MS                  « • 9  Rs. *,77.530, or £ 11,835
              As regards the alternative means of connecting Henjam and Bandar Abbas, we incline
           to the overland line vux Kishm. We do not anticipate any risk of interruption on the
           sparsely inhabited island of Kishm: and we think that any steps will be of value that
           may tend to strengthen our influence in that island, where we already possess the station
           of Bassidore, which might also, if necessary, be similarly connected with the station at
           Henjam. If, however, His Majesty's Government entertain a strong preference for a
           cable, we have no wish to press the point, and consider that the small increase in cost is
           immaterial:
              3.  It will be seen that in its initial cost the most expensive of the two projects which
           we favour is only half that of the formerly suggested line from Bandar Abbas to Jask,
           which was calculated to cost £30,500. The expense of maintenance will be slightly
           greater, inasmuch as, in addition to an office at Bandar Abbas, it will be necessary to
           maintain one at Henjam also. The existence of a station at this place will, however,
           apart from any considerations of political advantage arising out of a reoccupation of the
           island, be in' itself a distinct gain as affording a point in the fair way up the Gulf in­
           termediate between Maskat and Bushire, at which communication can be made with Hi«
           Majesty's ships of war. With the object of providing improved facilities in this respect,
           the Commander-in-Chief on the East Indies Station proposed early in 1902 the location
           of a telegraph station in the mouth of the Gulf—the place then suggested by him being
           Bassidore—and the advantage which would arise from the possession of such means of
           communication in the event of trouble at any point in the Persian Gulf is manifest.
              4.  Prior to the occupation of the island for telegraphic purposes in 1869, considerable
           discussion took place as to the ownership of Henjam. Rival claims were urged on behalf
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