Page 401 - Records of Bahrain (7) (i)_Neat

Annual review, I960 387

CONFIDENTIAL

-7-
17. Tho State budget for 1980, as published early in the
year, again showed a deficit, but it was expected that thio could
bo wot from unspent cash balances of the previous year, hold in

London. According to the Secretary , the Ruler like a hio
published a-.counto to show him ao poorer than he really is, and
has nolccd tho caoh balances brought forward not to be shown.
Nevertheless although it may be possible thus to shrug off the
deficit, the financial position la steadily deteriorating; the
recent capital works nearly all involve greatly increased
recurrent expenditure, and tho wore slowly increasing oil
revenues are now insufficient to provide a surplus for adding to
the reserves, os under the Delgrave regime. The appointment of
Shuikh Khulifah bin Salman to tho Finance Department is stated
to be u move to curb extravagance in future. The Implementation
of many of tho rcco mendationu of Sir Eric Pridio, for the
reform of the Medical Service ’.'ill doubtless hove to be delayed,
although it would be better to spend less on roads and street
lighting than forego bringing the Health Service up to date.
The construction of well-lit dual carriage-ways on an
extravagant scale* :.s well as considerable li nd-re.cla..:ation,
lies been a feature of 1960.
18. The Bahrain Go.ernnont, wfter impatiently pressing for the
Agency to hand over to them the issue of return visas and
Ho Objection Certificates, finally admitted at tho beginning of

1960, once Foreign Office approval had been received for the
hand-over, that they had not yet obtained the extra accommodation
or staff that would bo necessary. Tho death, in a traffic
uccidcnt, of Shaikh Hamad bin Mohammed, tho Director of
Immigration, caused further delays. ,?hon u meeting v/uo finally
arranged in Hovember to discuss tho details of the hand-over, it
*was found that tho Bahrain Government had increased their demand;.:.
*t ic expected however that much of this work will bo handed over
to them oarly in 1901 .

/19. "The Arab
confidential