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Budgetary affairs                     269

                                                POLITICAL AGENCY*
                                                     BAHRAIN.
            D.0. No.C/1172.                  The 17th October, 1946.





                   please refer t^correspondence resting with your
            printed Letter No.772-S dated the 24th September, 1946,
            on the subject of a Bonded Warehouse System for Bahrain.

            2.     I enclose copies of my demi-official letter No.
            C/1078 dated the 28th September, 1946, to Belgrave and
            of his reply which I have Just received,     I am Informed
            that it is the universal custom at all Free Ports to
            refund 7/8 of the import duty when goods are re-exported
            elsewhere, and in view of this it is difficult to refute
            the argument put forward by Belgrave in paragraph 3 of
            his letter.
            3.      I understand that it will be at least six months
            before the new customs sheds are ready, but I propose,
            if you have no objection, to urge Belgrave to press on
            now with the preliminary steps necessary for introducing
            the facilities suggested by him in paragruph 4 of his
            letter.
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    Tne Hon'ble Lt-Col. A.C. -Galloway, C.I.I5. , 0.
          Political Resident in the Persian Gulf,
                              Bahrain.

            NS.
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