Page 340 - Records of Bahrain (5) (ii)_Neat

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660 Records of Bahrain
i 'i In f> .
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Mo.C/490. Political Agency,
Bahrain, the 17th November 1936.

Sr~
From
Lieutenant-Colonel Gordon Loch, C.I.E.,
Political Agent, Bahrain.
To
The Honourable the Political Resident
in the Persian Gulf

i at Bahrain.

BAHRAIN STATE.
Sir,
I have the honour to address you on the subject of
the policy to bo pursued by the Bahrain Government in u»ing
their revenue from oil royalties.
2. Now that oil has been won in considerable quantities
and that a refinery has been established in Bahrain (and is
being extended), it is safe to infer that the Bahrain
Petroleum Company intend to work their concession in earnest
and that a large yearly sum will accrue to the Bahrain
Government in royalties for some time to come. One third of
the total royalties is handed to the Shaikh for the A1

Khalifah family and two thirds go into the revenue of the
1
Bahrain Government, It cannot, however, in the nature of
things be expected that the revenue from oil royalties will
continue for more than a limited period. The supply of oil
in the field may diminish and will someday ifc any case fails
and conditions of the market may change. It is essential
that the- Bahrain Government should face this fact from the
outset.
3.