Page 399 - Records of Bahrain (7) (i)_Neat

Annual review, 1960 385

Cwiu tutnl lAt
the Ruler mt two requests to i-APCO:-
(a) that the coot of thlo off-shovo drilling should not be
included in BAPCO1 a balance sheet.
(b) that the Bahrain Government should be grunted certain
financial concessions on crude oil imported into Bahrein
for processing at the buhruin refinery.
In their reply P.APCO rejected these requests; but to give the
Bahrain Government some financial assistancer they, put forward a
scheme for speeding up the payments of income tax over the next
three years.
12. Almost at the same time the Company notified the Government
of a decrease by about 14 cents a barrel in its crude oil prices.
Bcyondiwriting in protest against both these decisions, there was
little the Government could do, and it did not entirely reject

the Coispuny's offer.
13. The whole matter was left in abeyance, but these differences
did have the merit of making it clear to the Ruler that in this
day and age, it was essential to be able to call on expert advice.
loo often he rejects the offer of experts and professes himself
to know better what is good for his island. The London firm of
Solicitors, Trover, Still and Heeling wore therefore selected us
consultants, and two of its partners, Messrs. E.V.V/. Body and
M. Gilbert, visited Bahrain for a week in Dcccnbcr. They wore
shown all the relevant BAPCJO agreements and documents, and were
asked to report whether Bahrain had a legal right to more than
the company seemed willing to give. In an interim report they
hinted that their final answer to this would be in the

affirmative, but the" will study the problem more deeply in
London before completing a comprehensive report.
14. The Ruler's obsession that oil is the only answer to hia
problems has become very obvious, lie has seemingly forgotten
the proposal to tax foreign banks and perhaps companies, with
which he toyed in 1959. He lias hurdly token seriously the sections
of Sir Eric Millbourn'o report on how the now Mina Sul Man port
ohould be operated to benefit Bahrain's economy, lie continues
frequently to declare that the soil and soon of Buhrain contain
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