Proposed common currency for Persian Gulf states

This file relates to a proposed common currency for the Gulf States. It contains correspondence concerning:

• Head of Finance in Bahrain Sheikh Khalifa Bin Salman Al Khalifa’s discussion with the Ruler of Abu Dhabi Sheikh Shakhbut Bin Sultan Al Nahyan regarding a unified currency for the Gulf Sheikhdoms; a request for Mr R I Hallows’ report on the issue (2)
• Discussion on J P Tripp’s report [enclosed] on Bahrain’s currency with comment from Sheikh Khalifa; the need to correct an error concerning the purpose of Mr Hallows’ visit to the Gulf as understood by Bahrain (3, 11)
• Bahrain Currency Regulation 1964 and the Bahrain Currency (Appointment of Currency Board) Regulation 1964 [enclosed] (5)
• W H T Luce’s acceptance of an English version of Hallows’ report being given to the Rulers, but his objection to giving them to India and Kuwait; the amendments to a telegram to New Delhi on the proposed currency (6, 8)
• News from the French Embassy that the Ruler of Sharjah Sheikh Saqr Bin Sultan Al Qasimi intends to make a commemorative issue of silver rupee coinage (7)
• Talk between Sayyed Mahmoud Al Alawi and the Bank of England on the currency report for the Gulf States and Muscat (9)
• Record of a meeting at the Foreign Office to discuss the points arising from Bahrain’s request for redemption of its currency; comments on two draft telegrams to be sent to Bahrain and New Delhi on the redemption of currency in Bahrain; a request from Mahmoud Al Alawi to put forward a revised proposal to the Indian Government (10, 12-14)
• J A Snellgrove’s summary of currency problems in the Middle East (15)
• Letter from Abdul Qader Al Qadi of the office of the Deputy Ruler of Qatar on the proposed currency and a suggested reply (16)
• Talk with Govindan Nair of the Ministry of Finance in India about currency in the Gulf and in particular the need for an agreement on the maximum figure of rupees to be redeemed and the timing of payments (17)
• Abdul Qader Al Qadi’s visit to the Trucial States and Muscat for discussions about the report on Gulf currency; an agreement that it is too early to discuss this with the Sultan (18)
• Letter to Bahrain conveying the Indian Government’s proposals regarding the redemption of Gulf rupees; the Bahrain Government’s response that the proposals are acceptable, but the need for assurance that devaluation of the rupee will not affect the Gulf rupee (19, 22)
• Pace of the currency discussions set by Qatar (23)
• Comments on the Gulf currency from the Bank of England (24)