Page 32 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

19
15. On the outbreak of the last war Hamad made an immediate contribution
of £30,000 towards war expenditure and his successor and other notables
contributed to the Fighter Fund. Defence Regulations were issued and the oil-field
and refinery declared prohibited areas. In October 1940 Italian aircraft bombed
the vicinity of the refinery without doing any damage. A special Defence Officer
was appointed to Bahrain and troops were brought in largely for the defence of the
oil company’s camp and the refinery. The strength of the Royal Air Force
detachment at Muharraq was increased and local levies were raised but as they
did not prove satisfactory they were disbanded and replaced by Iraqi levies. Special
Defence Police were enlisted locally for the protection of the oil-field. An attempt
by the Political Agent to form a Defence Corps out of British personnel in the oil
company was unsuccessful. In 1942 a Defence Regulation was issued to prevent
British subjects leaving the oil company’s employ. A number of oil wells were
plugged and plans made for dealing with the remainder in the event of an
emergency. The most serious problem created locally by the war was that of
keeping the people fed and clothed and on occasions serious shortages threatened.
The Bahrain Government took over the supply of essential foodstuffs and an
elaborate system of rationing and price control was organised under the Director of
Customs, requirements being obtained through the Middle East Supply Centre. A
Regulation was issued under the Order-in-Council empowering the Political
Resident or Political Agent to make orders regarding the rationing, price-control
and the export of goods of any description and orders were made in consultation
with the Bahrain Government and applied by them. The war-time Regulation
was replaced by the Supplies and Services Regulation of 1947(2 *) which confers
similar powers, and rationing, price-control and export control were still being
enforced to a limited extent at the end of 1953.
16. The Bahrain Government issues an annual Administration Report which
gives details of the annual revenue and expenditure. Since oil revenues have
accrued it has been Belgrave’s policy to build up a substantial reserve as the life of
the oil-field is expected to be a short one. The Bahrain Government’s investments
were originally made in sterling securities. In 1941 on the advice of the Political
Resident they transferred them to rupee securities. When the transfer of power in
India was imminent in 1947 it was suggested to them that they should transfer their
investments back into sterling but they failed to take action until the new
Government of India had issued regulations which restricted such transfers.(2i) In
1949 they applied to the Reserve Bank of India for permission to sell half of their
rupee securities and subsequent investments have been made in sterling securities.
They have however not yet converted their Indian securities and in 1952 they had
about £900,000 invested in India and about £1,600,000 in the United Kingdom. The
total revenue for the Muhammadan year 1372 ending in September 1953 was then
estimated at about £2,350,000, of which two-thirds was to come from oil, and the
expenditure at about £1,950,000, and a sum of £240,000 was ear-marked for
investment. Of the expenditure about £725,000 was for new works.
17. The Customs Department is under a British Director. The latest
Customs Ordinance was issued in 1950 and was applied to persons subject to the
Order-in-Council by a King’s Regulation.^*) Customs duties are levied at 15 per
cent, ad valorem on tobacco and alcoholic liquor and at 5 per cent, or 10 per cent,
on all other goods.
18. The Ruler as a good Muslim is determined not to tolerate the drinking
of alcoholic liquor by his subjects and difficulty is experienced with him from time
to time on account of leakages from British Defence Service canteens, clubs, and
other sources. Under his ordinance issued in 1944 (Appendix C (i)) any of his
subjects found in possession of alcoholic liquor is liable to six months’
imprisonment and this penalty is often enforced, but never against offenders
belonging to his own family. Many of his subjects including members of his
family are addicted to liquor and his attitude is to some extent an impediment to
social intercourse between them and Europeans and Americans especially as he
does not favour their frequenting clubs where liquor can be obtained. An
Alcoholic Drinks Regulation was issued in 1951(27) in respect of persons subject to
the Order-in-Council which amongst other things forbids the offering of alcoholic
(,4) No. 1 of 1947.
(”) P.R. toF.O. 7 (19/176) of April 15. 1948 (E5050/115/91 of 1948).
(,f) No. 2 of 1950.
(”) No. 2 of 1951.