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                                          reform of the Customs administration of Bahrein has
                                         hecomo a tc«t cnso of the nature and degree of the
                                         influence which the British Oovormnont may reasonably
                                          claim to exorcise over (ho Hulcr of tlmao islands.'

                                 100(1.    In August 190G a further attempt was made
                                          hy the llcsident to induce Hie Slicikh to intrust
                                          the collection of the customs to the Government
                                         of India for a specific sum, in place of farming
                                          them out to the Bania-Britisli Indian contractors,
                                          ito declined to adopt this course, aud the matter
                                          was temporarily allowed to drop. It is suggested
                                          t hat the real ground of the refusal is to be found
                                          in the fact that Bahrein is the centre of a large
                                          smuggling trade.


                                           Judicial Powers exercised by llie Political Agent
                                                        at lialtrcin.
                                           The Government of India raised this subject
                                 1007.
                                          in their despatch of the 14th November, 1907,
                                          which is now under consideration, aud of which
                                          the following is an extract:—
                                           “ The Agent has at present the powers of a
                                          Magistrate of the 1st class, as described in 'The
                                          Code of Criminal Procedure, 180S,’ in respect of
                                          offences committed hy native Indian subjects of
                                          His Majesty in the Island of Bahrein and on the
                                          southern shores of (ho Persian Gulf. He also
                                          extends his good offices0 to European foreigners
                                          in any disputes between them and the Chief of
                                          Bahrein or his subjects.
                                           “ Next, he holds a Court, composed of himself
                                         and a representative of tho Chief, for the trial of
                                         eases in which tho accused is a Bahrein subject
                                         or a foreigner who prefers not to invoke British
                                         good offices, and the other party is a British or
                                         foreign subject who does so.
                                           “ finally, he controls a local Court of Arbitra­
                                         tion for the adjustment of civil disputes between
                                         British subjects and protdgds on the one hand,
                                         and Bahrein subjects or persons of any other
                                         nationality, on tho other hand. This Court has
                                          been in existence for over fifty years.
                                           “ He also, on occasions, issues bills of health,
                                         signs marine protests, and legalizes signatures on
                                         behalf of British Indian subjects. Strictly

                                           • Vide Secret despatch from Secretary of State, dated
                                         June 21, 1901.
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