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                 Dales,—The decrease in Imports and exports was due to the people of
              Hasa and Katif (Turkish Arabia) shipping direct to Basrah in the steamers
             " Megna", "Jaffari", and “ John O. Scott".
                 Wheal.—The decrease was due to the failure of the crop in Persia.
                 Dice.—The increase was due to the previous year's import having failed to
             meet the demand, and also to the fact that a smaller stock of wheat was
             being obtained.
                 Machinery.—Three machines were imported during the year—a flour-mili
             from India, a water-raising apparatus, fora well, from France, and an ice-ma­
             chine from the United States.
                 Vermicelli.—This item was formerly Included under the heading " Other
             sorts of provisions The consumption of this commodity lias increased very
             much lately, especially during the fasting month of Ramadhan.
                 Tea.—The increase in imports and exports was due to the greater demand
             from Persia, as well as from Hasa and KatiL
                 Shells.—The decrease in quantity exported was due to accumulation of the
             stock in Hamburg, and the difficulty experienced in selling at profitable prices.
                Specie.—The decrease in imports and the large increase in exports were
             necessitated by the peremptory demands from the pearl-brokers in Bombay for
             the partial refund of advances made against deposits of pearls on commission
             sale.
                 Pearls.—The decrease both in imports and exports may be attributed to
             the Pearl-merchants, beth of Bahrein and of Katif, Kowcit and Katar, retaining
             in their own possession a portion of their stocks until such time as an improve­
             ment in the Bombay market becomes apparent.
                 Glass-ware, gold-thread and woollen goods.—The increased import of these
             commodities was encouraged by the advantageous shipping facilities afforded by
             the direct German steamers to the trade in these lines. It remains to be  seen
             whether the demand will rise to the supply.
                Visits of steamers.—72 British steamers visited Bahrein on the  voyage up
             the Gulf and 37 called on the homeward journey.
                The only foreign steamers entering the port were the 11 ships of the Ham-
             burg-Araerica Line, referred to supra.
                Pilgrim traffic.—Only two pilgrim-steamers of the Bombay-Persian Steam
             Navigation Company served this port in November and December for the Mecca
             pilgrimage of 1907-08. They took away 451 pilgrims, of whom 385 returned by
             another steamer of the same Company in February 1908. The remaining pil­
             grims returned independently by the mail-steamers.
                Exchange.—The Maria Theresa dollar fluctuated during the year between
             Rs. 175 and Rs. 150 per cent., the Turkish Lira was between Rs. 13-14-0 and
             Rs. 13-10-0.
                Freichts.—Freights to and from India were from Rs. 10 to Rs. 12   per ton.
             The rate for shells to Hamburg by the German Line was 27s. 6d. per ton.

                Bahrein ;                      F. B. PRIDEAUX, Major,
                           }
             1st September 1908.                   Political Agent, Bahrein,„
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