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Wines and spirits.-The quantity of foreign spirits and wines is sufficient, having regard to the average requirements of the country for the past three or four years, though the figures show a decrease of 47 per cent. as compared with the figures for 1907-08. Common whisky and rum are the favourite drinks in the winter and Hollands gin in the hot season. Whiskies are imported direct from the distilleries at Glasgow, but a certain amount also comes from India to supplement short stocks. Local dealers say that the import of spirits is now only one-third of what it was 10 years ago.

It is probable that the decrease is due to the rise in the price of necessaries of life rendering the poorer classes unable to afford the luxury of alcohol.

Specie. It is difficult to account for the decrease in the import of specie. Among various causes which contribute to it may be reckoned. the lowness of the exchange rate between dollars and rupees, and fluctuations in the arms trade.

Special remarks.-Three new headings appear this year in the return for imports, viz., "Tinned provisions," "Vermicelli " and " Ochre."

Tinned provisions.-A separate heading has been started as the import is increasing. Sardines are mostly imported from France and tinned meats from the United Kingdom.

Vermicelli.-Large imports of this article direct from Germany have nearly displaced the Zanzibar trade. About 500 cases were imported in Hamburg-Amerika Liners, each case containing 20 small boxes of 13 lbs. They were sold for 11d. a box.

Ochre. All imports come either from Aden or from Harrar. The material arrives in bags each containing from 225 to 350 lbs. which are sold from 18. to 2s. 4d. per lb. according to colour. That of a pronounced colour fetches the highest price.

Exports. The total value of exports for the year under review amounted to 303,5881., an increase of 20,5581. or 7 per cent. as compared with the last year's (1907-08) figures of 283,0301. These figures are only approximate owing to the fact that as no duty is levied on goods exported from Muscat no statistics are kept by the Customs Depart

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Cotton and cotton fabrics. The export of cotton fabrics chiefly consists of lungies and pugrees (waist cloths and turbans). The trade with Zanzibar in these articles is said to have ceased owing to the fact that the Zanzibaris have taken to wearing trousers and caps.

Fish. The export did not reach the figure for 1906-07. The demand for fish has been steady, but the supply was inadequate.

Pearls. The increase is due to the disposal of the large stock of pearls which merchants had kept back in previous years on account of the low prices ruling in Bombay and the European markets.

Specie. The increase in export was possibly due to the lowness of exchange.

The following articles show a decrease :

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The decrease noted against all the above heads, except miscel laneous, is very slight. The date crop in the beginning promised to be a bumper one, but the shower of rain and the moist weather which occurred in August, 1908, spoiled it to a certain extent.

Fruits.-There was keen competition in the pomegranate trade, which formerly was the monopoly of a British Indian and an Arab firm. The quantity exported was larger than in the previous year (1907-08), but prices went down on account of competition.

Currency and exchange. The currency of the country continues to be the same as described in previous reports, viz., the Maria Theresa dollar of Austro-Hungarian origin and the debased copper coin minted some years back by order of His Highness the Sultan to replace the British Indian anna piece. As the transactions of the local post and telegraph offices are conducted in British Indian currency, the Indian Government silver and copper money is also in circulation in Muscat and its suburb Mutrah. Sovereigns are also current at the fixed rate of 15 rupees to the 17. The exchange between dollars and rupees varied throughout the year, the highest being 91. 9s. 31d. in June and the lowest 87. 11s. 94d. in December per 100 dol. The following are the average rates of exchange for each month in the local market during the past three years :

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Roads and communication.-No roads fit for wheels exist in the country. Transport is carried on land by means of camels and donkeys and at sea by native craft. Travelling in the interior is dangerous without a large escort.

Rates of transport.-The freight of goods either by native vessels or by camel varies according to the distance and the difficulties of the journey.

Agriculture.-Agricultural prospects in this country are very meagre. Wheat, pulse, gram and maize are grown to a certain extent, but the yield is small owing to the fact that the country is mountainous and the water supply scanty. The average yearly rainfall is 5 inches.

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Trade inquiries. Letters are sometimes addressed to this Consulate by merchants and manufacturers in the United Kingdom asking for information regarding the sale of goods in which they are interested. It is noted for their information that no organised industry is carried on and that there are no roads for wheel traffic. There is no sale for photographic or rubber goods, motor cars, bicycles, bioscopes, cinematographs or laundry machines, &c., about which inquiries are sometimes addressed to this Consulate.

Customs.-The customs are managed by His Highness the Sultan through a paid superintendent. The import duty on all articles of merchandise except arms and ammunition is fixed at 5 per cent. ad valorem. On arms and ammunition the rate is 6 per cent. plus 1 dol. on each rifle. Duty on goods is levied on the price ruling in the local market, hence the production of invoices is dispensed with by the customs. For this reason the department cannot give reliable statistics, and thus the preparation of this report is rendered very difficult.

No export duty proper is levied on goods leaving the country, but an internal transit duty of 5 per cent. is collected on dates coming to the ports for export to foreign countries or for local consumption. This duty is payable by the growers of the produce.

Freight and shipping.-662 vessels of 367,993 tons burden entered and cleared from the port of Muscat during the year under review as

against 678 entered and 677 cleared (426,824 and 425,217 tons burden respectively) in 1907-08, thus showing a decrease of 16 vessels of 58,831 tons under entrance and 15 vessels of 57,224 tons under clearance; 41 warships with a total tonnage of 59,118 tons have been excluded this year from the return, although it has been the custom to include them in previous years.

The percentage of number and tonnage of vessels of each nation that entered and cleared from this port is as follows:

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There are five lines of steamers running direct from Europe, three British, viz., the Anglo-Algerian and Persian Steamship Company, Bucknall Brothers, and the West Hartlepool Steamship Company, one German, viz., the Hamburg-Amerika Linie, and one Russian line.

There are two up and two down steamers of the British India Steam Navigation Company every week carrying mails and cargo. The following freights ruled per ton for the undermentioned articles :-

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The port of Sur is growing in importance and merchandise is now carried to and from India direct by native craft. No statistics of imports and exports relating to this port are available.

Table 1 (A).—TOTAL Imports during the Years 1906-07 to

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1908-09.

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(B).-TOTAL Imports of Principal Articles during the Years 1906–07 to 1908-09.

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(C).-IMPORTS of Principal Articles during the Years 1906-07 to

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