'File 19/176 VI Bahrain Finances' [‎95r] (190/253)

19/169 4 19/176.
COMFIDKMTIAL ,
l>.OMo. G/253 >
Office of the
Polltioal Hesident, Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. 9
Campt Bahrain»
the 3th June 1946.
Please refer to your demi-official letter No.C/576
dated the 4th June 1946*
2, I thoroughly agree with your criticisms but would note
that my predecessor has recently spoken to Belgrave very plainly
about his poor budgetting and the lack of progress that is being
made in the State and that what is required now is steady pressure
to bring about an improTement» *'ith this end in view I agree
to the action proposed in paragraphs 8 and 10 of your letter^
3. With reference to paragraph 5 of your letter i am
inclined to think it will be better to adopt the headings suggested
by the GoTemment of India in their letter to which you refer
especially as the Financial Adviser has already been advised to
adopt these headings* There are few productive schemes and the
bulk of the savings should therefore be set aside for capital
expenditure on unproductive schemes* Steps should then be taken
to ensure that the money so set aside is spent for the benefit of
the State and the public on public works* public health etc*
4* i have been particularly impressed since i came to
Bahrain by the extremely bad state of the roads which causes loss
both to the State and the public owing to the unnecessary wear
and tear on motor transport* i would ask that the Financial
Adviser should be pressed to io^rove the state of the roads as
soon as possible* T l o( \
b* X observe from paragraph 15 of the note recorded by my
predecessor on his discussions with Belgrave vide enclosure to
Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. Printed Letter Ko» 410-3 dated the 6th April 1946 that
Belgrave stated that the Muharraq swing bridge had not yet paid
for its initial cost but that this position would shortly be
reached agnd that it was then proposed to make the bridge free of
all tolls* If you see no objection would you kincly ascertain
when this position is likely to be reached* It appears to roe
that in view of its satisfactory financial position the ^tate
could well afford to forego these tolls at once* If it does
not do this it should at least put the road across the causeway
into a proper condition* Its present state is disgraceful*
6* I see from paragraph 6 of your letter that revenue
from interest on the Reserve is expected to drop to the extent
of fts* l f 50 t 000 during 1566* This appears odd especially in
view of the big increase in the Heserve and I should be grateful
for an explanation*