Page 271 - Records of Bahrain (6)_Neat

Budgetary affairs 259

n.O. No.2166-3. Advlserute,
October 12, 1946.

/
Dear Ranee, »?. •*
Reference your n.O. No.6/1078 dated 28th September,
1946, I thank you for sending the Aden Tobacco ordinance.
2. Referring to your para 5, the period for reshipment
of RE cargo Is 20 days.
3. I have discussed this matter with Smith and he has
examined the possibilities of a Bonded Warehouse System
for Bahrain. If a Bonded System were adopted the customs
would receive 1/8 of the duty from RE cargo instead of 2$
of its advalorem value. Sixteen times the present quantity
of RE cargo would have to be Imported into Bahrain, under
the Bonded System, to produce the revenue which the State
is now collecting by the RE system, a change in the system
would also entail increased expenditure on additional staff
and capital outlay on new buildings. Apart from imports
through Bahrain into Qatar there doe3 not at present appear
to be any immediate prospect of any big Increase in the RE
trade.
4. Instead of considering the Introduction of the bonded
warehouse system, at present, T am in favour of extending
the facilities under the existing RE system, Those facilities
apply only to certain specified ports on the coast of Saudi
Arabia, the arrangement is not a general one but is an under­
taking between the State of Bahrain and the Kingdom of Saudi
Arabia. I think it would be desirable and advantageous to
extend the present system to RE imports from all Gulf ports
and also to extend considerably the period allowed for
reshipment. i think His Highness would be willing to put
this suggestion into practice except in the case of Qatar.
We have considered in the past the possibility of using the
offer to grant to Qatar similar RE facilities as are enjoyed
by Saudi Arabia as a bargaining busis in any negotiations
which may take place between Bahrain and Qatar so it is not
likely that His Highness would grant a concession to Qatar
which might some day be grunted in return for concessions
from Qatar.
Yours sincerely,
Sd./- C. DALRYMPLIS BELGHAVE

Captain H.D.H. Ranee,
H.B.M.’s political Agent,
Bahrain.

NS.