Page 36 - Records of Bahrain (5) (ii)_Neat

358 Records of Bahrain
CONFIDENTIAL,
No, F.261-N/33.

From
Tho Foreign Socrclaiy to tho Government of India*
To
Tho Hon'ble the Political Huai dent In tho Poroian Gulf.

Now Delhi, tho Otf* October 1933,

Sir,
I am dirootod to refer to oerreopondenco ending with
^ S/TUft
your exprooo letter No, 129G-3, dated tho 7th October 1933
on tho eubjoot of tho financial poeition of the Bahrain
State,

2, Tho Qovernnent of India have read those documents
with much oonoern. An examination of the Keport 8 hows that
the pro cent condition of the Stato finances can only bo
deBoribed an moBt eeriouB and tho Govornmont of India noto
■ with great mlogiving Ur. Bolgrnvo'o opinion that the State

I io at present heading for bankruptcy and may in a few-years
have to turn to tho Government of India for financial
I aaoiotanoc, They realiso that the diooovary of oil in
=
Bahrain may eventually offoot a very ooneidorable improve-

i men & in the revenuee of the State but they oonsider that the
■ fact that an inoreaelng income may be derived from thle
source in the future does not in itself Justify the
oontinuanoe of tho preeont state of affaire, They obeerre
that in tho year 1346 the total revenue of the State was
Bs. 11,9la6l0/-,of whloh a Bum of Rs. 4,60,094/-, equivalent

to 46 per cent, was abeorbed by the Oivil Liet, and that in
tho following year tho percentage of Civil Liet to total
revenue dropped to 37,3^ per cent. In 1361 revenue had
fallen to Rs, 6,64,290/- but the Civil List still amounted
:
to