Page 39 - Records of Bahrain (6)_Neat
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         ADMIN  IGTRATION REPORT QF THE HAHRHN AGENCY IRdUPINi) Tllfi
              ynpCIAL COAST AND QATAR VOW THE YEAR I960.

         1.1imm<
                The steady progreso reported last year was maintained
         throughout I960| and supplies from the United Kingdom and other
         oountrles continued to increase In volume,   The standard of
         administration wua kept up to Its usual high level.
                Perhaps tho moat Important event of the year In its
         general effects was the Increase of oil royalties paid to the
         Ruler of Bahrain hy the Bahrein Pofcroieum Company from Ra.3/8/-
         to Rs.10/- per ton with ©ffuct from the of January. Tho great­
         ly increased revenue which will accrue to the Gtate from this
         souroe nlll enable a number of projects to bo taken In hand.
                It waa suggestod to the Bahrain Government that the
         Uhalkh might wish to lnveut the surplus funds available with
         the Bahrein Government In tho International Rank,    Ills Highness
         shoved some lnteroat In tho proposal provided that the condi­
         tions for Investment were satisfactory.
                The Bahrain Government wao somewhat perturbed at the
         announcement from the ' Bimrq el Edna* broadcasting station In
         November of tho proposed formation of a Peroration of Gulf 4*^*
         tftotes and asked the Political Agent to confirm or qorrecl
         this nows,   It seems to havo hud Its origin la & pressman's
         atory from Damascus,
                The.question of tho division of the aue-bed which Is
         o major issue with many political implications was not settled
         during the year.   Gone markers which had boon placed on vax'ious
         islands In dlopute by the ,‘iundl Arabian Government ware removed
         by one of H.U, Ships.
                ills Highness the bhalUii of Bahrain ouggoated at the
         boginning of the year that hu-would be prepared to dlncuss the
         boundaries with King Ihn Baud If titis would f« ollitato a settle­
         ment of the n;ottor, but no decision was taken on tills suggestion
         by the end of thu year.                                                            ;
                After protracted negotiations tho Shaikh of ^otar agreed
         to allow the Ruler of Bahrain's followers to visit the Zubaruh
         area without supurvlolon or check,    Thu result has boon Improved
         relations between Qatar and Ruhr*.in.
                The Ruler of Bahrain expressed his doslro to take over
          tho Postal Administration In Bahrain from ills Majesty's Govern­
         ment, but no decision was reached during the year.

                ills Majesty's Government agroort to oeio Jurisdiction to
          the Iiulor of Bahrain over nationals of Kuwait, iiuacet, Truolal
          Coast, and tile Yemen, but tho question of Jurisdiction over
          nationals of daudl Arobla was still under consideration at the
          end of the year.
                 A suggestion that tl»o Ghalkh should contribute to the
          United Nations Works Relief Agonoy for Pul«u>tlne Refugees wae
          not accepted ond the Advisor replied that the (Jheikh did uot
          propose to make any furtlier contributions to this cause.
                 Bahrain hud tho misfortune to bu the scene of two major
          air disasters In June, within two days of each othor. Both-tho
          pianos belongod to 'Air Prance' and were coming from Dal gem.
                                                / A local
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