Page 236 - Records of Bahrain (7) (ii)_Neat

626 Records of Bahrain

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that tho additional activities or tho Company, especially,

rofining operations, on which moat of the omploycos aro
ongagod, contribute greatly to tho wolfaro of tho Stato
by providing largo sculo employment which incx’oasoa tho
purchasing powor oi' tho pooplo and, indirectly, incroaaea
tho rovonue, aa an example, from cuatoms duties. In no
Western State howovor could tho argument ho udvancod tliat

hccuuso a Company contributes indirectly to tho prosperity
of a State it should not bo obliged to pay taxoa to tho
State, When tho concession was granted, many years ago,
a legal eacapo was providod for the Company from taxation,
but at that time there was no question of there being a

refinery in Bahrain, Tho Government hollovo3 that tho
profit* which tho Company aro now making from tho rofinory
are very large. It considora that it should roceivo some
compensation from tho Company for tho facilities, rights
and privdldgoa which uoro originally granted to the Company
for finding and producing cm o oil, which tho Company

now enjoys for its refining operations which huvo hocomo
such an important branch oi' the concern.
1>. The Company could hardly deny that Bahrain provides
many advantages for its operations of which roflning today
is porliapa tho most important. Thoro uro tho natural

- advantages of a short pipe lino and u rofinory clout? to
tho tankor harbour. There uro many other advantages and
m
=j
i i amonitios which a^ro providod by tho Government, at vory
considerable cost, perhaps tho groatost of those i3
Socurity, Thoro is a high dogroo of 3oourlty in Bahrain
for foroigh inveatmonta, operations and personnel. In

Bahrain tho Company does not havo to ouploy ariui03 of
:
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