Page 380 - Records of Bahrain (7) (i)_Neat

366 Records of Bahrain
CONFI IE NTIAL
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oponod up us British Council Representative in the Department
of Education, The Bahrain Government is still quite content
bo engage British (United Kingdom) experts, But is showing an
uveraion to Indians and Pakistanis, tempered By the realisation
that they are comparatively cheap urid good value,
Hu A three-man delegation, led By the Director of Education,
attended the anniversary coleBration of the Iraqi revolution,
But the repercussions in Bahrain of events in Iraq was slight,

15, In December, as a result of continual pressure By the
Ruler, the Bahrain Petroleum Company agreed bo relinquish a
portion of their off-shore concession, But he continued to
press them to drill in the area remaining to them, It ia
the Ruler's Intention to offer the relinquished area to other
companies for prospecting, But a preliminary requirement to
this is its demarcation, since, where it adjoins Qatur, he put
forward verBally to the Political Agent extravagant claims to
tho sca-Bed far exceoding the limits laid clown By Her Majesty's
Government in 1947. The Company's royalty agreement wqb also
renewed for a further ten years. The exploratory well drilled
By them at Buri, north-west of the existing field, proved dry
and operations wero discontinued. A new well, Begun late in
tho year near JeBal Dakhan, proved disappointing, But drilling
it has not yet stopped.
16.. Notwithstanding un increase in oil produce By 1|5,000
Burrols daily up to tho maximum possible, the revenue from which
was duly anticipated, tho Bahrain Government produced a Budget
for 1959 showing an estimated £600,000 deficit, Capital
expenditure accounted for over 50ft of expenditure, the deep­
water horBour, which is now known officially us Mina Sulman,
Being the chief strain on the state's economy. The slowness
of progress on it, however, prevented the Budgeted expenditure
from falling all in 1959.
17. Criticism of this slov/ progress continued and was reported
to have Been tho suBject of controversy in the Administration
Council, But us those criticising the consultant engineers
(Coode & Partners) and contractors (Gammon Pakistan) could offor
no alternative, work continued under the same team, including
the widening of tho head of the jetty to 100 feet and the
further dredging of tho approuch channel.
18. Sir Eric MillBourn, C.M.G., Shipping Adviser to tho
Ministry of Transport, was invited By the Bahrain Government to
corne out early in I960 to advise on tho organisation of the
harbour, and consideration of several questions, affecting
Bahrain's economy was postponed pending his report, notably the
location of the customs and provision of a free-zone for the
1 new harbour, the further, much-needed development of Bahrain
as an entrepOt or trading centre, and the possible provision of
a new slipway and dock. The Bahrain Government came no nearer
to being persuaded to undertake an economic survey, in the
absence of which it was difficult to assess the validity of the
tendency tov/ards increased wages at the end of the year,
ovldonccd by JAPCO's fty increase of rupee salaries and an
increase By the Bahrain Government to employees in tho lowor-
income brackets.

19. /

CONFIDENTIAL