'File 29/33 PRICE CONTROL' [‎71v] (142/152)

i
29/33
The Bahrain Government hope that tneir merchants will bfe able
to import sufficient quantities of sug^r (see also N/para 282
of file 29/17) and the o-ther commodities mentioned in Bchedul 2
^1 of the latest Order to keep the internal market sufficiently
stocked at reasonable prices and to permit unrestricted
export as well.
0
The unrestricted import of food from the Sterling
Area is against the policy of K.1UG. and we could hardly
give recommendation certificates for the import into
Bahrain of tinned provisions from Australia and the
soft currency areas - See Serials 88 and 88A in file 36/71
and sepials 26 and 36 in file 36/89-B^rand at the same
time permit their re-export. Nor could we permit the
unrestricted export of alcholic liquors, and I am doubtful
of the Bahrain merchants ability to keep the internal
rnarkdt stocked with British textiles for sale as controlled
prices (Schedule lll(i) ) if exports were not restricted
The building programmes of the B.O.a.C., Cable and
Wireless and other firms, as well as that of the Bahrain
Government, would be affected by a rise in the cost of
building materials. Such a rise would also affect the
rents of new residential accommodation, v/hich in turn .
would necessitate higher wages. I myself doubt the
Bahrain merchants ability to bring down and keep down
prices of building materials./ Some of these arguments
against a further relaxation of price control were stated
in S.30 when the last relaxation was made. v
72.
73.
/ 74.
Since the revised order was issued I have not refused 75.
an export permit for any motor vehicle^ when export has been
recommended by the Director of Customs. I retained the
control only to see how many Vehicles weretbeing 1j exported ;
and I think motor.vehicles might toWT-be removed from‘the sche iule.
For the rest i think we should temporize until
H.M.G's policy about restriction of imports has been
finalised and until it has been seetfto what extent we can
persuade the Bahrain Government to accept it and to co
operate in implementing it.
u
l.iay this be kept pending until we get further
instructions on C.O. File &/40 ?
/u/t