Page 328 - Records of Bahrain (7) (ii)_Neat

718 Records of Bahrain

projects which have proceeded apace (and inadvisedly, in some

casco) in Bahrain; and which have all been paid for out of
current income. Only this year has the Secretary to the
Bahrain Government stated that a capital account is to be set
aside to pay for capital projects which have been consuming
annually ovor 50$ of the state income, In addition to
ignoring the recurrent costs which capital projects incur the
Bahrain Government has also neglected, the building up of its
rosorvos, which stood at only Rs.113 million(£8$ million) at
the end of 1959. The 'reserves earn interest at about 3% per
annum; and oven this trivial sum is treated as State revenue
to assist in balancing the budget. Rc6orvcs totalling

.0102,750,000 with interest at per annum would be required
in the absence of other) income, to moot the present recurrent
expenditure of the Government!
1 6. This despatch pal nts a dismal picture of the way in which
the Government is foiling to grapple with the now obvious economic
problems fucing Bahrain and steadfastly ignoring the fact that
t Bahrain's future lies increasingly with the Arabian mainland.

This attitude has not changed and v/ill not in my view do uo unless
steps arc taken to persuade the Ruler of Bahrain and his Govern­
ment of the necessity for a more realistic approach to economic
mutters and to the future. I submit, My Lord, in the context of
Sir George Middleton's despatch Uo.l|6 of the \ 7th of May that
- we ought now to take these steps. "Go West, young man" is
as valid advice now in Bahrain as'.it ever was in the 10astern
seaboard of the United States; and I am sure: that it iu in

our own long-term interests an much as those of the young men of
Dahrain to ensure that Bahrain mends her economic fences and
encourages emigration Westwards no that she can eventually
SECRET /become,.•