Page 46 - Records of Bahrain (6)_Neat

34 Records oj Bahrain

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2 persons wore kllltd, 31 seriously injured and 48 slightly
injured.
21. ECONOMIC.
(o) Hu Eastern Bank Ltfl.
Wonoy eon easier than Inst year. Uxchangu rutea're­
mained fltablo, Rumours of revaluation in American Dollars i
Auutrallan Pounds and Indian and Ceylon Rupees remained un­
fulfilled. The free dollar rate showed loss tendency to fluc-
tucte and the imposition of the new visa tax in Baudi Arabia
greatly reduced activity In the free dollar market which how­
ever remained stable and rates were comparatively low throughout
tho whole period closing at Re,6-6-0. Trade was very active
in all commodities, The Buyers Market at the beginning of
the year created by increased production in tho United Kingdom
and tho partial rehabilitation of other r.uropoan production
areas wos brokori by the advent of the Korean tfor and the con­
sequent reduction in the export potentials of the allied powers.
Prices continued to rise right up to the end of the year, Rice
imports from Burma and Thailand v/ere higher Uu<n ever due again
to the prospect of future requirements being unsatisfied by
trouble in tho rlco producing countries further Feat.
(b) ThLVBrltlrdi Bank of .Iran and the riddle *; ft b t.
The new office premises of the bunk were completed and
occupied In April.

The bazaar was very active end the entrepot trndn of
the island continued on an lncro/tsin; aci.lu since bomo of the
fonuur restrictions in respect of articles imported 'in transit'
vu.io relaxed by the United Kingdom and Indian authorities. As
u result9 and in nplto of tho opening of the Jelly at lieicam
on the .iaudl Arabian mainland, more cargoes than over seen ’to
have been routed through Bahrain
Tho free dollar market continue*1 on quite u large scale,
but chcngas in tho method ol' payment of royal i.i v a by tho iir&t Jan
American Oil Company and llu. insistence. by tho iiuudi i.vu\ Ion
I'.i.Vcrnn.ci.l that dollars diulurood l.y U...? b. mpnny should l.o
bandied only by tho iiovcrin-.c-nt led te ..Ido fluctuations In tho
dollar rate, both in Uaudl Ar. bln and in bahraln. Tho i ctlcn
of tho Baud! Arab authorities in demanding a "quarant.1 no foe"
of fantastic proportions put on end to the *uok-vi«d vibJis
formerly paid to Bahrain by largo nui.,1 ,»ro of Amoricim o: ployoos
of the Oil Company, and for u tiuiw it aeoLiOd tin t tho bazaar
shops dealing in luxury goods would suffer heavily. Thu
buzuar was basically sound however and after a few months
wuya were found of continuing to supply the demand from Baud!
arable through agenlii end 'Occnalojiul tiavcl lors, and though tho
overall turnover must have decreased, there hsvo boon n<- signs
of "fblluro" among these merchants.
The otrJeter control of pilgrims leaving India end
Pakistan for the WtJ this year stopped tho numerous evasions
of Exchango Control which took place in 1949,
Tho numbur of Parcels end Documentary Bills for collection
sent to this Branch have about double.!, Credit business has
also Increased very considerably* partly as u result of the
eotioii of the Indian Government in demanding tin t credits shouta
bo opened from abroad before they would issue oxpoit licences
for certain types of cotton plecogoods.
/ 22.