Page 371 - Records of Bahrain (7) (i)_Neat

Annual review, 1958 357

2

CONFIDENTIAL

the discussion of projects, Public criticism has been voiced
at the Administration Council being composed only of Shaikhs
and officials. The view which is reasonable is expressed
that some merchants should be on it too.

5. The Government machine has operated reasonably satis-
factori1y. There has been some criticism from Bahrainis of
the lack of control exercised by Mr. G.W.R. Smith the
Secretary to the Government. On the other hand the tendency,
noticeable in 1957, against the employment of more British
officials seems to have disappeared. What feeling there was
then probably arose more from the fact that British cost more
than, say, other Middle Easterners. There is also probably
the feeling, increased by events in Iraq, that a British
employee, though expensive, is politically safe whereas other
Middle Easterners may not be.
6. The Labour Ordinance and the Employed Persons' Compensation
Ordinance came into force on January l, accompanied by parallel
Queen's Regulations for those subject to Her Majesty's juris­
diction. Though permitted under the Labour Ordinance there
has been no sign of any desire to establish trades unions.
Indeed the year has been free from labour troubles.
7. In February the Ruler of Bahrain visited King Saud at
Riyadh and completed the negotiations begun in December 1957
for a settlement of the sea bed boundary between Bahrain and
Saudi Arabia. The final settlement established the boundary
much as expected but with the notable difference that the I
reef Fasht bu Sa'afa which is thought to be oil-bearing and
which both sides claimed went to Saudi Arabia entirely instead
of being made into a neutral zone as had been proposed by
Bahrain, but with the undertaking that if oil were found there
half the proceeds accruing to the Saudi Arabian Government
would be paid to Bahrain. As far as Bahrain is concerned this I
represented a considerable hostage to fortune since the Saudis
would have the say whether or not the reef should be exploited.
Subsequent developments in Saudi Arabia have made it less
likely that the area will be developed at present. Since the
agreement was made discussions have been going on between
the two sides about the actual determination of the sea bed
boundary. An American company is to do this under contract
early in 1959.
8. The Ruler of Bahrain's claim to Zubarah in Qatar did not
become an issue again in 1958 though Shaikh Salman spoke to
Sir Bernard Burrows with bitterness about the "lack of support"
he had received from Her Majesty's Government, when the latter
said goodbye to him on the termination of his appointment as
Pol i tleal Resident.
9. Bahrain's revenue from oil and other sources held up well
in 1958 though with ever increasing government expenditure
money was not any easier to find for the many government
projects. Trade has also continued at a satisfactory level
/helped . . .
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