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Budgetary affairs                     263

                CONFIDENTIAL                Peralan Oulf Residency,
                                                   Bahrain,
                D.O.No.047-3                the 2nd November, 1946*






                                               S'
                            Will you ple.a4e^refer to your demi-
                official letter No.C/1172 datod the 17th October,
                1046?
                       e.    I am unable to follow the argument

                at paragraph 3 of Belgrave's letter because the
                calculation of "i of the duty" depends upon the
                rate at and bnoia on which duty la charged. I
                should be grateful if you would get the matter
                elucidated.
                       3.    In passing I should like to noto
                that if Bahrain is made a free port it will be

                impossible to exclude one state from the benefits
                of the port. However, that need not be gone
                into yet but it is interesting to note how the
                Qatar phobia invades Bahrain development projeots.












       Captain H.D.H. Ranee,
            Political Agent,
                    Bahrain.






                NPO.
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