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284                       Records of Bahrain

                                  CONFIDENTIAL.

                                  D.O.No.C/350.                     POLITICAL AGENCY,
                                                                        BAHRAIN,
                                                                 Dated 6th April, 194&#




                                                              • a .ii

                                          I took up the^nratter of the Civil List referred to
                                   in your d.o. No.638-S, dated the 23rd March, 1948, with
                                   the Shaikh yesterday.
                                   2.     I tried to make the point that it is not the
                                   Shaikh's expenditure <?n his family that we are questioning,
                                   but the incidence of that expenditure on the State Budget.
                                   As usual, the Shaikh avoided the real issue by saying that
                                   he had to increase the allowances because prices have gone
                                   much higher - a proposition which it was impossible to
                                   contradict. He went over (for about an hour) more or less
                                   the points he made to Belgrave, though he didfnot say that
                                   the increases were made with the knowledge of Galloway.
                                   When he mentioned Kuwait, I said that Kuwait ought to take
                                   Bahrain as an example, and he should not argue that Bahrain
                                   should follow Kuwait's example - he avoided this argument.
                                   I then told him that the light of publicity shone upon
                                   Bahrain and there was bound to be public criticism if a dis­
                                   proportionate amount ofthe State's income is spent pn the
                                   Al-Khalifah. He said that he only disposed of one-third
                                   of the royalties and that the other two-thirds are devoted
                                   to State purposes. This is important. He did not argue
                                   that one-third of the royalties should be paid to the Ruler
                                   and one-third to the Ruling Family. I hope that if he
                                   contemplates a further move of this kind that he will refer
                                   to us in future; and at this late stage that is all we
                                   can hope for.












                                 The Hon'ble Sir Rupert Hay, KCIE, CSI,
                                  Political Resident in the Persian Gulf,
                                            BAHRAIN.                      fpFPri-H’ F
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