Page 221 - Records of Bahrain (6)_Neat

Budgetary affairs 209
3 S C R K. T •_
.')/ I By Air Maxi.
Hi
No»D • 18261-?.! T5/44 •
From
The Joint Secretary to the Government of Indie
in the External Affairs Department,,

To
The lion*bio the Political Resident- In the
Persian Gulf,
Dated New Delhi, the December 19'i4.
Subject;- Bahrain Report, 136a.
Sir,
(St l
I am directed to acknowledge receipt of a copy
of the Government of Bahrain's annual report for the
| year 1362, and to say that the Government, cf Indie
have, observed with satisfaction the successful manner
in which the affairs of Bahrain have been handled
during the year under'report, which they consider
I reflects credit on His Highness' Government and
their Adviser, They would, however, invite attention
to the fact that the allowances of the Ruling family
absorb a proportion of the total revenues of the
State which is higher than is generally considered,
appropriate. 1* is recalled that, in your letter No.
G/292 of the 11th July 1941 you stated that, you had
/sown the seeds for an eventual reduction of the Ruler's
. / share of the oil royalties from one-third to one-
UtL t 9/ fifth, but that since the State had all the funds it
■7*—'"'"required the matter was not then being pressed, Al-
v. though it is recognised that with the increased costs
of living now prevailing the present time also may-
no t be regarded as particularly, auspicious for urging
a reduction in His Highness' Privy Purse, yet the
necessity for econoo\y in all directions is likely to be
increasingly feltj and the Government of India trust
that-you will lose no opportunity of impressing upon Ills
Highness the desirability and lmtx>rt.*noG of reducing his
personal expenditure and the scale of allowances of
his family as soon as tills becomes possible.
It may be of interest to you to know that, in an
Indian State with an annual revenue, Rs. 40 lakh3,
current political theory and practice would regard any
thing between 10 and 15% fi3 a fitting end not un­
reasonable proportion of the total revenue to.be
allotted to the privy purseJ though, if the ruler of
such a State asked for advice, it would be suggested
to him that, he should keep the allotment as near to
10% as possible.

bushire resident I have the honour to be,
Sir,
No Your most obedient servant,
Date.... '.SrJfjHiZ
it
CONFIDENTIAL recoroT
Joint. Secretary t.ot the'Govt.. of India.
Co ib>q Itocy tXo
*JT<h3ltm9m~s oUlXcl ?/*/«!>-
... 000. •,. (I $ £,)
b.m.