'File 19/176 VI Bahrain Finances' [‎90r] (179/253)

Copy of Demi-official letter No.501-21 dated
the 6th March, 1946, from C.D. Belgrave, Esq., C.B.E.,
Adviser to theBahrain Government, to the political
Agent, Bahrain.
Reference your D.O. No,0/210 dated 25th
February, 1946, the budget for the present year has
already been made and approved by His Highness and it
would be difficult at this stage to recast it on the
lines suggested in your note. I am sorry that I did
not receive this note before, in time to adopt the method
which is laid down in it.
2. The life of the oil field was estimated in 1937
at 15 years. It would be interesting now to know what
is its expectation of life in the opinion of the Company.
Would it be possible to ask the Bahrain Petroleum Company
whether we could be given a very rough "without prejudice' 1
idea of how long the present output may last? The basis
of the scheme appears to rest on this factor.
3. Apart from the electric scheme there is at present
no important government undertaking which produces
revenue and the budget on the expenditure side consists
almost entirely of expenditure on public services and
administration. His Highness has in mind a building
scheme in Manama which includes the construction of a
line of large shops which would be productive scheme
but this was not included in the 1365 Budget as the
material for the buildings is not likely to be available
for some time.
4. I will prepare the next budget on the lines of
your note and I hope by then that there will be certain
productive schemes on which capital expenditure can be
spent.