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454                       Records of Bahrain

                       Confidential
                                                              Political Agency,
                       No. C/591
                                                        Bahrain, tho 12th June 1941,

                                                                I     . . if9 .........
                       From                                      r  <. 1
                              Major R.G.E.W, Alhan, O.B.E.,      f            ■ ..................

                                     Political Agent, Bahrain.
                       To

                              Tho Honourable tho Political Resident
                                     in the Persian Gull', Bushire.

                        Sir,
                              I have tho honour to forward herewith tho following
                        papero
                           (1)  A comparative statement showing receipts and expenditure
                               for the years 1358 and 1359 and the budgot estimate for
                               the year 1360.
                           (2)  Final figures of Revenue and Expenditure of tho Bahrain
                               State for the year 1359, together with a summary exhi­
                               biting details of tho siate Reserve.
                           (3)  Notes by the Adviser on Revenue and Expenditure for
                               the same year.
                           (4)  Revenue and Expenditure Budgot figures for the year
                               1360, together with a schedule of public works.
                           (5)  Notes by the Adviser.on expected Revenue and Expenditure.
                          2.   Receipts
                               During the year 1359 receipts, dropped by fe 3,22,734; this
                        was due mainly to drops of Rs 1,55,888 in Customs receipts and
                        Rs 82,843 in Royalty on oil, duo to some shortage of tankers as
                        a result of the war.

                               The drop in Customs revenue is the beginning of a decline
                        due to the reduction in activities of tho Oil Companies and the
                        poverty and unemployment prevailing in the Island. These in­
                         fluences are continuing in an aggravated form during the current
                         year and the Adviser has rightly allowed for a further drop
                         of about Rs 2 lakhs in Customs revenue and about Rs 6 lakhs in
                         Royalty.
                           3.   Expenditure

                               Expenditure in 1358 was Rs 36,75,434 and in 1359 it
                         amounted to Rs 29,14,372. Deducting the Shaikh'a gift of
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