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                                 GENERAL REVIEW
              While writing a report on the administration of the State during 1365 I
        have included under each heading a short note surveying the work of every depart­
        ment since it came into being. Ten years ago I wiote a report dealing with the
        administration from 1926 until 1936, the present report covers briefly the period
        from 1936 to 1946.
              Financially the year 1365 was a successful one, the revenue amounted to
        69J lakhs of which 27 J lakhs were derived from customs duty, which is an indication
        of the flourishing state of trade. The pearl catch was sold, in Bahrain, for a price
        which was the highest on record for many years and generally the people of the
        country continued to enjoy war-time prosperity. There was no unemployment,
        rather, in many trades, &. shortage of labour due partly to Bahrain Arabs going to
        work in Saudi Arabia where wages were high but the cost of living was still higher.

              Rationing and price controls were continued though restrictions were
        removed from the sale of a few non-essential imported goods. It had been hoped
        that during the year rationing could be discontinued but owing to the state of
        world food supplies the prospect of an end of rationing and controls still seems to
        be far distant. The cost of living in Bahrain did not decrease to any perceptible
        degree, but it continued to be very much lower than in neighbouring countries,
        and there was no advance in labour wages or tendency towards inflation.
              The state of public security was good ; there was a falling off in war-time
        offences such as Black Market trading and smuggling, there were fewer cases of
        theft, though pilfering from ships’ cargo in the port was on a large scale, and there
        was a great improvement in traffic discipline.
             The arrival of goods from England, including motor vehicles and building
       materials, which had been ordered during the previous year, made it possible
       for the Government to begin various important public works which were held up
       during the previous years owing to the lack of such things as cement, wood and
       steel beams. The largest work on which a start was made during 1365 was the
       Manama town building scheme, in the neighbourhood of the Customs, in the centre
       of the town, which includes reclaiming an area of sea, rebuilding the customs sheds
       and the construction of nine shops, a Post Office, a Police Station and a large
       block of offices. The construction of new premises for the P.W.D. with offices,
       sheds and a compound, was commenced on ground which is being reclaimed from
       the sea on the south edge of the Manama-Muharraq causeway.
             There was expansion during the year in the work of the Medical and Educa­
       tion Departments, a large house in Muharraq was bought by the Government to
       be converted into a new Women's Hospital and the Secondary School moved
       into new quarters so that the old Secondary School could be absorbed into the
       school hostel, which is the only Boarding School in the Gulf.


                                    C. DALRYMPLE BELGRAVE, C.B.E.,
                                              Adviser to the Government of Bahrain.
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