Mss Eur F126/69, ff 92-95

Letter concerning the 'advisability or otherwise' of developing pearl fisheries in the deeper channels of the Persian Gulf.

The letter details the political situation in regards to responsibility for the pearl banks in the Gulf; past actions taken by the Government to prevent British subjects or foreigners attempting to dive on the banks and their support of the Arab Chief's in protecting them.

The letter also describes the geography of the Gulf itself and the distances that shallow waters cover, particularly around Bahreyne [Bahrain]; areas where the pearl banks are beyond territorial waters; and hearsay that the pearl oysters that wash ashore do migrate from shallower to deeper waters.

Pelly goes on to document his concerns that such a proposal could set a precedent and that the sudden increase in pearls could disturb the market; that it would cause great discontent among the Arab tribes who may view it as a breach of their monopoly; the risk of exhausting the beds and costing tribes their main industry and giving Pelly's view in conclusion that the Government should discourage the intrusion on the arab pearl banks.

Pelly also raises the possibility that the American's or Russian's could consider embarking on a similar course of action; and discussing the question of the Persian Coast and the 'unexplored' pearl banks near Karack [Chārak] as well as the question of whether Persia would defend intrusions onto them.

The verso of folio 95 also contains several comments between Pelly and his Clerk's in relation to the copying of the letter and its onward submission.