Coll 30/70 'Bahrain: Amendment of contracts of Capt Parke, Commandant of Police, & Mr Belgrave, Adviser to the Sheikh of Bahrain: leave of Mr Belgrave, etc.' [‎32r] (63/379)

KOTE ON DISCUSSIONS WITH MR. BELGRA
at Bahrain on igth march 19 46.
I began by pointing out that the actuals for
1362, 1363 and 1364 bore little connection with the facts
and showed that the budget was almost worthless as an
accurate guide to the financial events in the State.
The surpluses owing to under eapenditure and under-estimated
revenue were over 7 lakhs One lakh is equal to one hundred thousand rupees in 1362, over 19 lakhs One lakh is equal to one hundred thousand rupees in 1363
and although the actuals of expenditure were not given for
1364 it is clear that there must have been a saving of
over 13 lakhs One lakh is equal to one hundred thousand rupees owing to the greatly enhanced revenue received.
Mr. Belgrave said that this was due to the excess receipts
of customs revenue and stated that it was difficult to
estimate this accurately in advance. I inquired why he
had estimated for a drop in 1364 when it was quite obvious
that the war would be going on for some time and that there
was little chance of a drop in prices. I could not follow '
Mr. Belgrave # s reply to this. I pointed out that the
original plan of saving 14 - 15 lakhs One lakh is equal to one hundred thousand rupees a year was now obsolete
as the life of the oilfield was obviously secure for some
time to come since the Oil Company were spending a great
deal of money in installing fresh plant. I added that so
far as I was aware, the life of the field was estimated at
between, at the minimum, another 15 years, and possibly
as much as 50 years. Mr. Belgrave did not appear to be
aware of this. I drew his attention to the fact that the
remark in his report two years ago that people were dying
of starvation in villages read oddly when one reflected
that the State had at that time over half a million pounds
in the bank. Mr. Belgrave said that this was really due
to the fact that these people were upset by the tfiange of
diet necessitated by the cessation of rice supplies. I
drew his attention to the fact that the word he had used
was ’’starvation” . Mr. Belgrave volunteered the statement
that when the capital sunk in food supplies was realised
the actual balance of the State would be over a million
pounds. I said that this gave point to my view that
some capital expenditure in the State was justified and
added that I felt certain he would have to face rising
opposition from the public if nothing was done in the very
near future.
2. HEALTH .
I drew Mr. Belgrave’s attention to the remark in
his report that the staff had been leaving for India owing
to inadequate pay. Mr. Belgrave agreed that the State
could well afford to pay as good wages as the Government
of India* and said that the position was now quite satis
factory An East India Company trading post. as the staff were contented with their present
terms. I inquired the State Medical Officer’s financial
powers, and Mr. Belgrave said that he was allowed to spend
any amounts in his budget. Mr. Belgrave mentioned that
there was a 9-bed hospital for women in Muharraq with a
lady Doctor which was always full, and added that there
was a men’s out-patient hospital there as well. He agreed
that Dr. Snow should be asked for his views as to future
medical policy in the State.
3. ENGINEERING .
I inquired the State Engineer’s financial powers
and degree of control over the other engineers and the
/ Oil.. .