CONFIDENTIAL شم 3 -4 JAN 1963 SYVED INBRITISH POLITICAL AGENCY,XIVES BAHRAIN. December 27, 1962.881102/1 (1399) Dean Goch, 0 I think it time, for the record, to mentionin a letter the fact (of which you are aware) thatGray, Mackenzie and Company Limited in late summerthis year belatedly changed their policy of nonassociation with local businessmen, though not tothe extent of relinquishing control of any of theirenterprises. The company in which they took thisstep was their separate Bahrain subsidiary, theBahrain Slipway Company Limited, registered in theUnited Kingdom. A 30% share of this firm waspurchased by a well-known Bahraini businessman,Sayyid Husain Yateem, who tells me he paid at least$165,000 in cash in London, the £1 shares going for25/-. The nominal capital value of the concernaccording to this would seem to be £440,000, whichappears about right, in view of its excellentequipment, which results from the past policy ofGray, Mackenzies taking no profits but ploughingthem back. 2. Husain Yateem is not playing a managing role inthe company but is on the Board of Directors. Heis, moreover, advising the Board of the names ofsuitable Bahrainis who might be interested inpurchasing other shares; the company intends to dothis, presumably up to 49%. 3. The Bahrain Slipway Company was, you recall,deprived by the intrigues of the Kanoos of the useof a floating dock which Gray, Mackenzies recentlybought in Europe and were obliged to sell again;it cannot hope for further expansion owing to theterms of the Ruler's concession to the Bahrain ShipRepairing and Engineering Company (Kanoos), a rivalslipway enterprise, but has two years' work alreadybooked and can look forward to good business for anindefinite period.4. I am sending copies of this letter to Peter Trippat the Residency with an extra copy which he may wishto pass to the Senior Naval Officer, Persian Gulf; afurther copy is being sent to the Commercial Relationsand Export Department of the Board of Trade. Yours ever Led Wrecshie (E.P. Wiltshire) E.F. Given, Esq.,Arabian Department, Foreign Office, CONFIDENTIAL
