Page 578 - Records of Bahrain (6)_Neat
P. 578

566                        Records of Bahrain


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                 reading*    A State with nearly a million pounds in the
                 Bank is unable to keep toaohore und nurooo owing to in­
                 adequate oalarieo and io oontent to aooept scholarships
                 from a. foreign power I (Pages 86 and of the report J •
                 Perhaps, after consultation with BelgraYe and, on the
                 Medical aide, .with Drs* Snow and Doeg you will be able
                 to obtain deoiolono to remedy thia otate of affaire and
                 to foraulato propooalo for auoh future improYemente ao
                 are practicable and shown by the reporto to bo necessary*
                       5.   Belgrave, I suppose, Justifieo his oonoerYatlYe
                 finance in the terma of the phrase in hie Oeneral Review
                 (page 4 of the report) —"The fortunate financial position
                 of the State waB to a great extent due to war conditions"
                 (the underlining is mine)* We are presumably meant to
                 infer that the larger Customs receipts ure a windfall of
                 the war besides which the Oil Royalty is hardly worth
                 consid ering*   When the latter forms half of the whole
                 revenue (page 6) the inference is, of course, baseless*
                            The Oovemment of India letter 1 have quoted,
                 though drafted in a somewhat doctrinaire spirit, does in
                 paragraph 6 give valuable advice on the approach to the
                 financial aspect of the easel and I Bhould be glad if you
                 oould take up with Belgrave the question of putting it
                 into effect*    This brings me to discuss staff and new
                  schemes but it is obvious that until a financial policy
                 is formulated, proposals must bo, in some oases, tentative*
                       6*   In the first place is the 8tate oapablo even of
                 administering its finance ?      I see that Pelly mentioned
                  the matter of aooounte to Belgrave and was told that all
                 was well (the enclosure to his demi-official letter No*
                 P*0 dated 19th August 1946 to you).      I shall be glad to
                 know whethor you agree with Belgrave or whether you think
                  that an Aooounte Offloer for the Otate is necessary• If
                  the need is there I do not think it can be met by audit­
                  ing by an outside firm as, I understand, is occasionally
                  undertaken*    And an outside firm cannot formulate and
                  supervise the exeoution of a financial policy*
                            Ho further examination of Bahrain finances is,
                 however, needed to enable us to decide that an efficient
                  eleotrlo and pumped water supply, and better roads and
                  Btreets are items on which expenditure is now Justified*
                  The present Bahrain engineering staff is inadequate for
                  the exeoution and maintenance of these projects and I
                  suggest that what is required is an engineer, of the olaso
                  and statue of a Superintending Engineer in India, with
                  full oontrol of all publio works and buildings, and
                  adequate staff, some of whom would probably be European,
                  and powers* I should be glad of your views* The book
                  value of the existing buildings would be relevant*


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