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22. Roval Air Force Levlea.
Two Companies of H.A.F. Levies were raised locally

during the year for the protection of the aerodrome at
MUharraq. Discipline was good, and they made excellent
progress in their military training.
23. Defence

Officials of the Bahrain Government and the Manage­
ment of the Bahrain Petroleum Company Limited rendered
valuable assistance to officers of the Navy, Army and Air
Force engaged on activities connected with the protection

of the Island and its oil field. The Bahrain Government
also organised an efficient system of Passive Air Defence.
24. Economic
(i) Currency.

Owing to the high prices obtainable in Iraq for gold
and silver, the export from Bahrain of sovereigns and rupees
reached an undesirably high level at the beginning of the

year and it became necessary to place drastic restrictions
on this traffic. For some time a certain amount of
smuggling took place, but the adoption of further restric­

tive measures effectively stopped smuggling on all but a
negligible scale. From July onwards illicit traffic in
gold and silver practically ceased.
Cii) Foodstuffs.
During the year the import and distribution of food­

stuffs developed into a major problem. Due to restrictions
on the export from India of rice, wheat, sugar and other
essential commodities, and due to the Irregularity of

shipping, great difficulty was experienced In obtaining
$
foodstuffs sufficient for the maintenance of Bahrain’s
cosmopolitan