Page 298 - Records of Bahrain (6)_Neat
P. 298

286                       Records of Bahrain

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                                    share of the oil royalties.    Ho io now kooping hair of
                                    the third share of the oil royulties for himself and
                                    distributing the othor half amongst his relations and
                                    no allowances are paid from general revenues,    The
                                    result of this is that the payments to the ruling
                                    family amount to a little under one quarter of the total
                                    revenue as compared with about one fifth in previous
                                    years.   We need not grudge the Ruler the increuse in
                                    his privy purse and he is perhaps wise to be generous
                                     to his relations as in the primitive and patriarchal
                                    conditions prevailing in the Gulf Sheikhdoms, discontent­
                                    ed members of the ruling families are always the main
                                    potential source of political trouble.    I huvo heard of
                                    no signs of popular discontent regarding the new civil
                                     list and in the circumstances I do not recommend that
                                    wo should make any protest,    I feel sure that such
                                     a protest would bo unavailing unless it wore bucked
                                    by vexy strong pressure on the Ruler,    This would
                                     only bo justified if there was popular discontent or
                                     if the balance of revenue left after the payment of
                                     allowances was inadequate for the proper administration
                                     and development of the Sheikhdom, which is clearly
                                     not the case,
                                     6.    My only comments on the other items of expenditure
                                     are that of tho total devoted to New Public Works,
                                     namely 32* lakhs, Education claims a large share,
                                     since 13? lakhs are earmarked for such building projects
                                     ao tho Hostel, the Secondary School and the Girls'
                                     School.   The item on account of Rice and Sugar is
                                     recoverable, and it cannot be said with certainty
                                     whether any of the item of 20 lakhs on account of the
                                     new Pier will be spent in the current year,
                                     7. It will be evident even from this brief analysis
                                     that tho surplus for investment estimated at 2fl£ lakhs
                                     iB safe; and it is probable thut the Buhrain Govern­
                                     ment will wish to invest without delay.    An existing
                                     Reserve Fund of approximately 123 lakhs is invested in
                                     Government of India securities, but His Highness the
                                      Ruler wishes to transfer these funds from India and to
                                      build his entire reserve in British Government
                                      securities.
                                      8.    In general I consider that tho Bahrain Budget
                                      for 1370 has been drawn up with a due sense of
                                      proportion and that the competing claims of tho
                                      Shaikhdom in its present stage of development have
                                      been met with marked success.
                                      9.    I am sending a copy of this despatch to the
                                      British Middle East Office.

                                                                I have tho honour to bo
                                                                with the highest rospect,
                                                                         Sir

                                                                Your most obedient servant,
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