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                                              APPENDIX II.

                       Report of Qapt. Malcolm on the state of the trade between Persia 8f India and
                                  suggestions as to the means for improving if, 1800.



                               lo—The FiRLof Mobnirotok, Governor General.
                                                                       Fort William.
                        My Lord,
                              I have already acquainted Your Lordship, of my having been furnished by the Govern­
                       ment of Bombay with voluminous Documents relating to the trade of the Persian Gulph. I
                       have siuce lhy arrival  +  perused the Records of the Factory, from the period of its
                       original Establishment. The possession of this information, joined to the circumstance of my
                       having personally visited Muscat, Hormuz, Kishm, An jam, aud Kharruckh, makes me more
                       bold than I should otherwise have been, in offering at some length my sentiments to your
                       Lordship on that part of ray mission which more particularly relates to the commerce with the
                       Gulph of Persia.
                          2. In treating a subject of such extent, I am aware that inexperience will lead me into
                       frequent'error, and that, I can add but little   X  X  X        X
                       possesses. I, however, feel it my duty to communicate what I am able, confident of meeting
                       with indulgence and that Your Lordship will execuse any fault ... negligence in the
                       execution of the important duties with which I am entrusted.
                                          x       X       X       X           and concise, I
                       shall divide it under the following heads : —
                          first.—A general view of the former Trade of European Nations with the Persian Gulf
                       from its first Establishment till the year 1763 the period at which Gombroon  x
                           Second,—View of the present state of the Trade with the Persian Gulph.
                           Third.—The mode by which it appears to me the Hon'ble Company could best
                       improve and promote that Trade, and reasons that occur both on Commercial and political
                       grounds for their adopting this mode.
                           tourth.—-The Port in the Gulph best situated for a settlement.
                          Fifth.—The probable estimate of Receipts Sc Disbursements, if such was made.
                          Sixth.—The means most proper to carry this plan, if approved of, into execution.
                          4. In treating the first part of my subject, vizt A general view of the former Trade of
                       European Nations with the Persian Gulph from its first Establishment till the year 1763 the
                       period at which Gombroon was abandoned, it is not necessary to my •... thereupon to enlarge
                       on the extensive Trade which was carried on by that route between India and Europe before,
                       and for a considerable time after, the discovery of the passage by the Cape of Good Hope. It
                       is sufficient to observe that the existence of that commerce, and the flourishing state of Persia
                       under the Sep Race, and Arabia   ...   accounts fully for those remains of
                       splendour which are yet seen at every Port & on every Island of the Gulph. A great part of
                       the produce of India no doubt found its vent in this direction and enriched every place
                           x     which it passed in its course.
                           6. The Portuguese taking advantage of this circumstance, seized the Island of Hormuz
                       in 1607, and from it, they extended their  X  over  the whole Gulph and
                            X      of all the Trade from India to Persia and Arabia.
                           6. Their Reign was brilliant but of short duration, it fell from two causes; first. The
                       rapid improvements in art; which facilitated the        Good Hope,
                       and Completely       the current of the Trade between India and Europe to a new
                       channel. Second—The gealousy and power of rival European Nations, who not only contended
                       with them for the markets of India, Arabia and Persia, by making settlements in those


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