Page 62 - Records of Bahrain (5) (ii)_Neat

384 Records of Bahrain

Confidential.
Mo:C/411-0/9. Political Agency,
n Bahrain, the 10th July 1935.

From:-
Captain G.A.Cole, I.A.,
Officiating Political Agent, Bahrain.
To:-
The honourable the Political Resident
in the Persian Gulf, Bushire.

Sir,
I have the honour to forward in triplicate the Annual

Report of the Bahrain Government for 1353 and the Budget Estimates
for 1354.
2. During the year 1353 the reserve was increased to Rupees
three lakhs, which were placed on fixed deposit with the Eastern
Bank limited, Bombay. Towards the end of the year a deposit of
Rupees one lakh fell due and was not re-invested. The local branch
of the Eastern Bank Limited, which acts as the Government Treasury,
asked the State authorities to increase the amount of their current

account in Bahrain in return for the work which the Bank was doing
for the Government. This amount was , therefore, paid into the
current account of the Bahrain Government and the reserve still
remains at Rupees two lakhs.
3. During 1354 the State should receive substantial sums
from The Bahrain Petroleum Company Limited on account of payments
from royalties on oil. In this connection I think the time has
come for some definite decision to be made in regard to (a) the
Civil List and, (b) the Reserve.

In regard to (a) • The Civil List at present appropriates
approximately 50# of the revenues of the State. It is further
Inflated by the arrangement whereby royalties from oil are shared
on a basis of l/3rd to the Civil List and 2/3rds to the State.
It is true that this arrangement will eventually reduce the
/percentage