Page 219 - Bahrain Gov Annual Reports (II)_Neat

General Review.

Tho revenue of the State of Bahrain, tho prosperity and almost the existence
of tho country, depends upon oil and pearls and neither the production nor the
markets of these two commodities are controlled by the Bahrain Government.
Both the oil industry and the pearl industry are likely to bo affected by the
European war. Although the war started in the eighth month of the Arabic year
which is under review the disturbed conditions in Europe prior to tho war affected
Bahrain during the summer: no foreign buyers made important purchases of pearls
during the year and the only activity in the Bahrain pearl market was caused
by local merchants who gambled on the possibility of war causing a boom in pearls,
as was the case in 1914-15.
Tho royalty from oil in 1358 was Rs. 32,35,000 which was Rs. 3,00,000 less
than in 1357. The total revenue was Rs. 45,78,000 which was Rs. 2,33,000 less
than in 1357. Expenditure in 1358 was Rs. 30,75,000 including the gift of 4 lakhs
to the British Government as a war contribution, Rs. 1,30,000, which was spent
on purchasing rice as a war measure and payments to the Ruling Family amounting
to Rs. 15,10,000. The total expenditure in 1357 was Rs. 31,00,000. In spite
of less revenue and greater expenditure it was possible to add 10 lakhs to the Reserve
Fund during the year bringing it up to Rs. 40,98,000.
In the budget for 1358 I anticipated a serious decrease in customs revenue
owing to developments on the mainland: the actual decrease was slight. I also
assumed that 4 lakhs would be received in payment for an oil concession over the
additional area but the payment was not made during the year.
In the budget for 1359, which is the 14th budget that 1 have had the honour
to submit, 1 anticipate a revenue of 45 lakhs, expenditure of 32 lakhs and a
contribution to the Reserve Fund of 13 lakhs. Provision has been made for the
cost of additional defence measures, for completing the Manamah-Muharraq
causeway and bridge, the state hospital and for expansion of the technical and
other schools.
Conditions in Bahrain during the year were quiet. There was only one serious
crime and no recrudescence of the political disturbances which ocurred in 1357.
At the outbreak of war the Government took immediate stops to control the prices
and the supplies of foodstuffs and necessities. This action was appreciated by the
public and was imitated, rather late in the day, by neighbouring Arab States. The
Government purchnsed 3,000 bags of rice from Rangoon in order to ensure a supply
for the population in case of a shortage of food. Part of the rice was sold during
the year and the remainder will be sold early in 1359.
IIis Highness Shaikh Sir Hamad at the beginning of the war and on
subsequent occasions expressed his sympathy with the cause of the Allies and placed
the resources of his state at the disposal of the British Government.
The most important local event during the year was the visit to Bahrain
of His Majesty King Abdulaziz al Faisal al Sa'ud who was accompanied by many
of his sons and ministers. His visit demonstrated the friendly relations existing
between the Rulers of Bahrain and Sa'udi Arabia.
During tho summer His Highness Shaikh Hamad spent a few weeks in
Simla and Shaikh Mohammed bin Isa paid a visit to Kew York, being the first
Bahrain Arab to visit America.
There lias been no change in the relations between Bahrain and Qattar.

C. DALRYMPLE BELGRAVE
Bahrain,
April 1940.