Page 79 - Bahrain Gov Annual Reports (III)_Neat

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GENERAL REVIEW.
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The activities of the Bahrain Government during 1362 were mainly confined
to ensuring food supplies for the population, direct and indirect co-operation in
all matters concerning the prosecution of the war and in carrying on the normal
administration of the state in spite of decreases in staff, increases in prices and
difficulties in obtaining most things that used to be imported from abroad.

The shifting of the scene of war to a sphere more distant from Bahrain did
little to alleviate the problem of food supplies. During the year imports of rice
ceased and the people were obliged to accept a diet of wheat, flour and barley
instead of living upon rice to which they were accustomed. This caused some
discontent and grumbling and there was a certain amount of illness aggravated by
the change in diet but the improved arrangements which were made by the
Government for distributing rationed food throughout the islands resulted in
everybody being able to buy rationed food at the controlled price. Cereals, dates
and sugar, costing about fifty lakhs of rupees, were bought and imported by the
Government and distributed and sold to the people during the year. As the
revenue exceeded the budget estimation by a considerable amount the Government
was able to bear this large outlay without having to make inroads on the Reserve
Fund.

Though the cost of rationed food and many other essentials was controlled
by the Government the prices of most other commodities, both local and imported,
continued to soar. In 1361 Bahrain was suffering from unemployment. In 1362,
especially at the end of the year, no able bodied man was unable to obtain work.
Owing to the cost of living and the competition between companies and the Services
to obtain labour the scale of wages increased and skilled and unskilled men were
tempted to leave their permanent employment in order to earn higher wages in
temporary posts. In spite of granting a war allowance the Bahrain Government
was faced with the prospect of losing many of its employees including clerical staff, I
teachers and trained police. Many foreign employees preferred to seek high paid
war work in their own countries than to serve in Bahrain. For these reasons
and owing to the impossibility of carrying out any public works because of the
prohibitive cost of building and the lack of materials, expansion in the various
departments of the state was severely curtailed. A disturbing factor of the labour
position is the effect that it is likely to have upon pearl diving which is Bahrain's
only permanent industry apart from oil. Many divers have obtained employment
on shore and will probably be unwilling to return to diving.

The year brought prosperity to people engaged in many trades and
occupations. Pearl brokers had a successful season as the pearl market in India
was good. Owners of date gardens made money as the controlled price of dates
was high and many people sold their dates in the black market. Speculators in
cars made fantastic profits and in spite of the reduced quantity of imports and
partial control of prices piece-goods dealers prospered exceedingly. Labourers
employed in cutting coral stone and digging and burning gypsum and lime earned
over 100 per cent more than they did before the war. Carpenters and masons
demanded and obtained very high wages. Owners of houses suitable for letting