مجموعة ٣٠/ ٢٢٤ "ترتيبات العملة في المشيخات العربية في الخليج الفارسي." [ظ‎‎٣‎٩] (١٥٧/٨٦)

finance and other Tatters, could he achieved by indirect laeana.
He suggests that H.M.G. should appoint a Financial Adviaer cum
Ce&neici&l Beoretary to the staff of the Political iiesident of
the Peraian Gulf. I strongly endorse this proposal. The
officer appointed to this poet should spend much of his time at
Kuwait and would endeavour to gain toe confidence of the Sheikh
to the end that financial and other advice offered will be
accepted. This officer could also take on the normal duties
of a Co?»nereial Secretary for which there is a great need in
the Gulf. Much more trade could be done with the Gulf by the
U.K. than is being done at present and the appointment of a
Commercial Secretary to the Gulf seems to be- a pre-requisite
to an expansion in trade. Exchange Control also would be the
responsibility of this officer. The person appointed should
be experienced in financial and comhercial matters and, equally
essential, should be appointed for a longer term than is normal
in the case of a Caramercial Secretary. It will be a long
tedious process for the officer concerned to insinuate himself
into the confidences of the Sheikh. If he is removed after
a tovu- of 2 or 3 years or so, the process will have to be
repeated by his successor to the detriment of the policy of
continuous persistent advice to the Sheikh.
The growing importance of the Gulf States as a
whole, in political, financial end comnex*cial matters seeme to
uarrent the early appointment of a Financial Adviser/Comrercial
Secretary for the Persian Gulf.
(IV) R e se rve -\uid. ah re i n.
The Bahrein Government has built up a Reserve Fund
amounting Kb. 226 lakhs. Of this amount Rs. 107 lakhs is
invested in 3- Indian Government Loan 1 963/63 and r.s. 10 lakhs
in 2^ Indian Government Loan i 960 .
The Sheikh of Bahrein and ir. Belgrave are perturbed
at finding that about half of Bahrein’s Reserve Fund is loened
up in India. It is true that an opportunity of realising these
Indian securities and re-investing them in sterling securities
did present itself before the prohibition * or sales 6 f Indian
socurities but it was missed. An application was subsequently
made through the bankers to the Bahrein Government but
permission to sell was not obtained.
Mr. Belgrave has now submitted an application on
behalf of the Governnent of Bahrein to the keaerva Bank of India
for permission to sell half the amount of Indian securities held
and he i* s^asiag the Governraent’s recpaest on the need of funds
for development purposes. If permission is obtained the
Bahrein Government will wish to invest the proceeds after
conversion to sterling in British Government long dated securities.
W Kuwait 1 ave e tme nt s *
Treasury letter dated 14th April in which is
co mtHm d some notes as well as my-brief, reference ia ** هذه التواريخ تقريبية * 4 ^ to
a rumour that the Bheikh of Kuwait would like to buy sterling
investments with his dollars. The letter then mentions a
ran Si.-*;t to the Folitieal Resident causing discreet
enquiries. At the time of my visit the Political Re si dent had
not received the Saringr&m nor had he heard anything of the
rumour. Nothing was known at Kuwait. . .
The Political Reaidant considers it probable th&t the
Sheikh of Kuwait's agent in London - a ^r. Kemp - may have
instituted enquiries on behalf of the Gheikh.
/m)