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No. 273, dat?d RjTncin, (ha 23th May 90G.
                   From—Captain F. D. Pripeacx, Political Agent, Dahrc:n,
                   To—Tho Secretory l«> the Government of India in tlie Foreign Department, Simla.
                 Under instructions from the Political Resident- in the Persian Gulf, I hare
             the honour to submit the Trade Report of the Rnliroin Islands for tho year 1003
             together with Statements of Imports and Exports and Shipping Returns.

                   Hr port on the Trade of the Bahrein Islands for the year 1005.
                Tho trade of Bahrein has increased during the past year beyond all expec­
             tation, tho imports having lisen from Rs. 1,18,84,120 to Its. 2,13.01,510 and
             the exports from Rs. 1,35,07,491 to Rs. 2,01,50,013. The total volume there­
             fore shows an increascof 57 h percent on the preceding year’s, which itself had
             never been exceeded previously, 'ibis result is tlio more remarkable firstly
             because in the early part of the year a good deal of nervousness was exhibited
             by British Indian and Persian merchants consequent upon the strained rela­
             tions manifested fora short time between the Government of India and the
             Chief of Bahrein, and secondly in consequence of the epidemic of disease—on
             this occasion, plague—which for the third year in succession attacked tho towns
             of Manama and M uliarr.iq, causing a further loss of some -100 lives and tempo­
             rarily driving several thousands of towns-pcoplc away to other parts of the
             Gulf.
                2.  The epidemic which commenced in May 1905, was fortunately not of
             long duration as it failed to maintain itself in the hot weather, and the islands
             Merc declared free of disease in June 1905.
                3.  Apart from the evidence of statistics the general prosperity of the
            mercantile community is apparent from the numbers of new and substantial
             buildings which are in course of construction, the high prices at which lands
            and houses have changed hands in the towns, and the increasing infiux of
            merchants from Linga, Basra, Hasa and Bush ire.
                4.  The chief reason for this improvement is undoubtedly (he strong
            attitude adopted by the British Government in February 1905 f«»r the purpose
            of punishing the unruly subjects whom the Chief himself had been uuable to
            control. An increase of confidence and security therefore pervaded all classes,
            including even the agriculturists whose lot is probably the worst >n Bahrein,
            and it is confidently anticipated that the future will show no relapse from this
            state.
                5.  Prophecies are even being freely hazarded that the trade of Bahrein
            will soon equal that of Maskat, which port at present docs the largest business
            in this corner of tho world,
                6.  The firms of Gray Paul & Co.,ar.d Robert Wonckhaus & Co., have been
            at work throughout the year, and the hot season brought two French specula­
            tors in pearls to Manama.
                7.  The earlier arrival, AL Perronne, is not believed to have done well as he
            apparently Mas an amateur in the trade, but Madame Nat tan, tho proprietress
            of a large retail jewellery business in Paris, who came l iter, bought somo \t00,0( 0
            francs’ worth of pearls, end her return this year is said to have been fully
            decided upon.
                8.  'J be British India Steam Navigation Company have this year had a
            monopoly of the carriage of cargo in steamers, the Bombay and Persian Steam
            Navigation Company being the only other shipping line whoso vessels have
            visited the port. Tho latter have carried pilgrims only to Jed da and back.
            This state of affairs has given much dissatisfaction to Bahrein merchants, and
            consequently the report that the Hamburg-American line is making arrange­
            ments to'run steamers to all the Gulf ports has been cordially welcomed even
            by the Hindu tradora.
                379FD
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