'File 19/169 IV Bahrain reforms' [‎10r] (19/124)

reading. A State with nearly a million pounds in the
flank is unable to keep teachers and nurses owing to in
adequate salaries and is content to accept scholarships
from a foreign power! (Pages 26 and 54 of the report j •
Perhaps, after consultation with Belgrave and, on the
Medical side,.with Drs. Snow and Boeg you will be able
to obtain decisions to remedy this state of affairs and
to formulate proposals for such future improvements as
are practicable and shown by the reports to be necessary.
Belgrave, I suppose, justifies his conservative
finance in the terms of the phrase in his General Review
(page 4 of the report) —•The fortunate financial position
of the State was to a ^reat extent due to war conditions'*
(the underlining is mine). ^e are presumably meant to
infer that the larger Customs receipts are a windfall of
the war besides which the Oil Royalty is hardly worth
considering. When the latter forms half of the whole
revenue (page 6) the inference is, of course, baseless.
The Government of India letter I have quoted,
though drafted in a somewhat doctrinaire spirit, does in
paragraph 5 give valuable advice on the approach to the
financial aspect of the case; and I should be glad if you
could take up with Belgrave the question of putting it
into effect. This brings me to discuss staff and new
schemes but it is obvious that until a financial policy
is formulated, proposals must be, in some cases, tentative.
6. In the first place is the State capable even of
administering its finance ? I see that Pelly mentioned
the matter of accounts to Belgrave and was told that all
was well (the enclosure to his demi-official letter No.
P.0 dated 19th August 1945 to you). I shall be glad to
know whether you agree with Belgrave or whether you think
that an Accounts Officer for the State is necessary. If
the need is there I do not think it can be met by audit
ing by an outside firm as, I understand, is occasionally
undertaken. And an outside firm cannot formulate and
supervise the execution of a financial policy.
Ho further examination of Bahrain finances is,
however, needed to enable us to decide that an efficient
electric and pumped water supply, and better roads and
streets are items on which expenditure is now justified.
The present Bahrain engineering staff is inadequate for
the execution and maintenance of these projects and I
suggest that what Is required is an engineer, of the class
and status of a Superintending Engineer in India, with
full control of all public works and buildings, and
adeouate staff, some of whom would probably be European,
and powers. I should be glad of your views. The book
value of the existing buildings would be relevant.
/ I should