Page 73 - Records of Bahrain (4) (i)_Neat

Introduction of reforms, 1923 63

Serial No. 120.

No. 307-S., datod Busliirc, tlic 22nd Juno (received the 2nd July) 1923,
From—-The Hon’ble Lieutenant-Colonel S. G. Knox, C.S.I., C.I.E., Political
Resident in the Persian Gulf.
Bahrein Reforms.
In continuation of my despatch J No. 283-S. of the 15th June, I have the honour
to submit my detailed comments on Major Daly’s proposals for initiating the reforms
in Bahrain, taking in their order the different subjects discussed by Major Daly.
I— Finances.
2. (a) Al Khalifeh Family Allowances.
Subject to subsequent revision when the finances of the State have been put
in order and it is possible to frame something likeabudget I support the preliminary
arrangements proposed by the Political Agent. This restriction of the old privi­
leges which, as Major Daly says, resulted in an “ incredible waste of public money ”
• is an essential measure of reform if the way is to be cleared to a sound financial
position. It is bound tp cause discontent at first and probably continual opposi­
tion which will, of course, be directed against us. That is an inevitable consequence
of our action which must be faced.
(6) Treasury and Accounts.
The arrangements which have been made with the Eastern Bank, Limited, as \
the State Bank have my entire support as a practical working solution of a difficult
problem. The separate funds held by the Bank will form the nucleus of a State
budget which it will no doubt be found possible to introduce at a later date. The
Government of India arc no doubt aware that the Eastern State Bank was for many
years practically the State Bank for Iraq and possibly is so still.
II— Customs.
3. I agree with Major Daly that the reorganization of the Customs is tlic essential
preliminary to the introduction- of Beforms in Bahrein ; and his arguments and
proposals have my full concurrence. I hope that the Government of India will i
be pleased to give their support to Shaikh llamad’s request for the loan of an ex- I
pcricnccd British Customs officer. Expert advice is indispensable if the Customs I
arc to be pluccd on a sound basis. In a separate communication I have suggested tho
deputation of a British Customs olficcr to Kuwait for the examination of the Customs
records at that port with a view to the settlement of the difficulties that have arisen
between the Amir of Ncjd and the Shaikh of Kuwait over the transit duos of the
former. I hope that the Shaikh will agree to this deputation—which indeed would
commit him to nothing—and could only be productive of great profit to his admi­
nistration—and if so it would seem a natural and obvious arrangement that the
same officer deputed to Bahrein should go to Kuwait. The whole business would,
I estimate, take him three months at most, and the extra expenses would be borne I
by the Bahrein and Kuwait revenues. 1
Major Daly asks that this matter bo arranged telegraphically : and I agree it is
important that this preliminary work be carried out with the minimum of dolay.
If Government agree, therefore, I bee to ask for the favour of telegraphic inform-
ation so that I may approach the Bombay Government for the loan of a Customs
•Serial No. 123. t Social No. 121. X Serial No. 120.