Coll 35/20 'Persian Gulf: Bahrain; installation of a telephone communication between the wireless station of Imperial and International Communications Ltd at Manamah and the landing ground at Muharraq' [‎72r] (143/431)

/6.
Extract from Notes on visit to the Persian ''juLf,
October, 1946, from Telecommunications Attache
to Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , dated
20th October, 1946.
Bahrein Automatic Telephone System
1. While the present position regarding the installation of the new automatic
telephone system is very unsatisfactory the blame for the delay and uncertainty
cannot all be laid at the feet of Cable and Wireless Ltd., and the visit of the
Company's Divisional Manager to Bahrein should enable the situation to be
cleared up to a very large extent.
2. To summarise, the Company learned, in September 1944, of tenders submitted
to the Bahrein Government by three American manufacturers for the installation
of a new automatic telephone system. The Company approached the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. ,
and said that if necessary, they would be prepared to install and operate such
a system in order to keep American influence to a minimum. The approval of the
Bahrein Government for the Company to submit a proposal was given in December
1944.
The Company sent an engineer to Bahrein in April 1945, who, after an
extensive survey, recommended the installation of an automatic system.
Considerable difficulty was experienced in the purchase of the necessary land
for the exchange buildings, and there was apparently little, if any, co-operation
from the Bahrein Government who, the Company claim, were only going against their
own interests and forcing up the ultimate telephone rental by allowing the
Company to pay inflated commercial prices for land, instead of themselves
purchasing or requisitioning the necessary sites and disposing of them to the
Company at a reasonable figure.
3. Undue emphasis was also laid by the Bahrein Government on the necessity
for keeping rentals on the new system down to the present figures, which seems
quite unnecessary and miserly, for if subscribers are prepared to pay the
existing rentals for the appalling service which they now get, they would
obviously be prepared to accept a reasonable increase to cover an improved
service. A small increase was ultimately accepted.
4. A purchasing specification was drawn up on the engineering survey, and
after various delays, the Company informed the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. in February 1946
that the necessary orders had been placed and that delivery was expected within
twelve months. While there does not seem to have been any great activity on
the part of the Company to get these orders placed, this is perhaps
understandable from their point of view at the time, for with the threat of
nationalisation hanging over their heads, they did not wish to embark on any
scheme involving considerable capital expenditure until their own future
position was a little more clear, as that capital would otherwise remain
available for distribution to their shareholders on the break-up of the
Company as a commercial entity. In any event, the orders are now placed, and
there is no information that they have been cancelled in the light of more
recent developments.
5. A few months ago, the Company's Technical Advisor on telephones arrived
in Bahrein to complete the survey and make the necessary arrangements for the
work of installing the new system. On arrival, he found the question of the
purchase of land still incomplete, and once again, claims to have received no
co-operation from the Bahrein Government, coupled with v/hich the contractors'
estimates for the construction of the necessary buildings had risen almost
100^ over the previous figures. He was also informed that B.A.P.C.O. proposed
to charge the Company for all calls put through to their Awali exchange, which
would make some appreciable difference to the Company's annual revenue. On
top of this, the Bahrein Government maintained their attitude that rentals
must not be increased any more.