Page 44 - Gulf Precis (III)_Neat

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OHAPTER VII.
British loans to the Sultan of Maskat in 1895—97: proposed loan of
an officer to reform customs, 1898.
109. In Scptcmbor 1895 tho Sultan asked in writing for a loan of $30,000,
to bo recovered by doduction of $1,000 per moneora from Zanzibar subsidy!
Socrct E.. December 18'.'5. No*. 01 —CG. Tho Sultin verbally statod that, if lug
Secret E., April 1890. Not. 181-191. request could not bo granted, ho would
kavo to apply for help elsewhere. Tho necessity for loan had not boon properly
stutod. Tho Government of India sanctioned a loan of Rs. 60,000 with interest
at 4.} per cent., ropaynblo by monthly instalments of Rs. 2,000, to bo deducted
from tho Zanzibar subsidy, tho loan being conditional on written assurances
from Sultan that it would bo devoted to meeting prosent difficulties, and that
Sultan would not borrow from any other foreign powor while tho loan remained
unropaid (Foreign Department letter No. 1986-E., dated 29th Octobor 1895).
Sultan accepted the terms.
110. In 1890 tho Sultan determined to attack Beni Ruahch against Cap­
tain Bcville's advico and asked for a loan of Rs. 20,000 in anticipation of sanc­
tion of Government. Captain Bovillo refused to comply. Tho Sultan also
asked fora loan of R9.40,000 to punish tribes in the interior and broalc down all
opposition to his rule. On 1st Novombcr tho Sultan asked for $20,000 down
to pay off troops in anticipation of sanction. Captain Bovillo again refused to
comply (his lottor No. 300, dated 10th November 1896).
111. Tho Government of India required, as condition of any loan, that
the Sultan should fully explain the purpose for which tho loau was required,
the manner in which it would be utilised and his actual financial position. The
Sultan’s responso was not cordial or full. lie ostimated his liabilities at
$130,000. The Government replied that they wore not willing to givo assist­
ance for an expedition agaiust Beni Ruahek, but wero willing to help the Sultan
if he would givo explanations already asked for (Foreign Departmout telegram,
dated 18th May 1897).
112. The Sultan’s expenditure was about $700 per mensem in excess of
income. He intended to effect a reduc­
Socrct E., April 1897, No*. 02- 03.
tion of $2,000 per mensem. The Customs
had been sold for $24,000, though worth $150,U00. Sayyid Faisal like
Sayyid Turki had no extravagant tastes. This time he gave the informa­
tion unreservedly. $100,000 were wanted to pay the loau borrowed during
rebellion without interest, being duo to the Banyas and Arabs. $33,000
bore interest at 20 per cent, per mensem : this last Sultan desired to pay off by
means of loan of Rs. 60,000. He wanted Rs. 40,000 also to pay off Arab credi­
tors. Captain Bevilleadvanced Its. 6,200 on hi9 own responsibility (Politioal
Agent’s letter No. 170, dated 2nd June 1897). A loan of Rs. 60,000 was sanctioned
on tho same terms as the previous loan, repayment to commence when the first
loan would he discharged. The Government of India expressed a desire that
the Sultan must undertake to show the Political Airent tlmt ordinary expendi­
ture, including refund instalments, could and would be kept within ordinary
iucomo, and the Political Agent, if necessary, should take means to secure that
the loan was not diverted from the declared object, viz., of paying debts which
bore exorbitant interest (Foreign Department telegram, dated 28th June 1897).
113. Hopes were also held out that if the Sultan gave proof of resolve to
place finances on sound basis, Government would consider a third advance of
Rs. 40,000 to pay off Arab creditors. Government would lond a suitable officer
to reform customs if the Sultan desired (Foreign Department letter No. 1172,
dated 21st July 1897). Tho Sultan gave necessary assurances as to extinction
of debts bearing exorbitant interest and balancing of revenue and expenditure.
114. As the customs, tho Resident reported that tho Sultan was likely to
consent to give the Government of India
Secret E., M*rcb 1898, No». 12—19.
control over customs Department for ten
years and asked for permission to promise as an inducement, if necessary,
an advance of one year’s customs revenue. Lord Salisbury, however, con-
sidcrcd that actual and direct control of the Maskat customs by the Govern-
ment of India would conflict with the independence of the Sultan secured by
the declaration of 18G2, but that the object in view might be secured
by the Sultan 8 appointment of a British officer as Superintendent, °f his cus­
toms and by an advance of money to the Sultan or the security of the customs
(Secretary of State's telegram, (luted 18lh February 1898J.