Page 599 - PERSIAN 9 1941_1947

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importers because of the lack of shipping space, and this
forced the banks to extend credit to importers. The
greater part of/this trade was with the United Kingdom and
covered a variety of articles including piecegoods, hard­
ware, radios, cement, toilet articles, electrical fittings,
toy, shoes, Discuits, etc., etc. Australian imports took
second place and consisted mainly of foodstuffs. During
the year a small number of young Bahrainis went to the
United Kingdom to make contacts with commercial firms.
There was also a resumption of business with continental
Europe, and in the last few months of the year credits
were opened by local banks with France, Holland and Italy.
(ii) Banking Exchange.
Apart from Indian funds, exchange rates were
steady and remained so throughout the year. The Indian
market depends greatly on the sale of pearls, and as the
pearl market was dull the sale of Indian bills fluctuated
from 2>% discount in January to 1% discount in December.
There was a large demand for foreign exchange.
Considerable quantities of uncurrent silver
rupees and other silver coins were shipped to India.
Local stocks of uncurrent coins appear to be exhausted.
Sovereigns were exported to *lraq and Egypt.

The Eastern Bank continued to have by far the
largest share in banking activities but the imperial Bank
of Persia also had a satisfactory year, in the latter
bank over a hundred new accounts were opened.
(iii) industry.
The difficulty in obtaining cotton yarn from
India during the year under review seriously affected the
local cotton weaving industry which is carried on in the
villages on the south-west coast of Bahrain.
During the latter part of the year Mr. Hussain
Agar,, a Persian business nan and the owner of a cotton
mill in Bushire, visited Bahrain with the object of start­
ing a cotton mill on the Island. After some discussion
with the Bahrain Government he broke off negotiations and
left Bahrain.
(iv) Property.
Land and house values remained at a high level.
In September the Government brought into force a new Rent
Regulation and as a result values were stabilized and there
was no increase in the price of house property. The appli­
cation of this regulation to shop rents is under considera­
tion.
20. MEDICAL.
(i) General.

The health of the community is reported to have
Improved during the year under review, due, in large part,
to a mild summer, and to the increasing sanitary anti-
/malarial.....