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ACTION NEA-10
INFO OCT-01 ISO-00 /011 W
--------------------- 103890
P 251126Z NOV 74
FM AMEMBASSY MANAMA BAHRAIN
TO SECSTATE WASHDC PRIORITY 1672
LIMITED OFFICIAL USE SECTION 1 OF 2 MANAMA 0987
FOR NEA/EX WILLIAMSON
E.O. 11652: N/A
TAGS : ABLD, BA
SUBJECT : HOUSING OF CHANCERY IN MANAMA
1. IN ORDER TO TAKE FULL ADVANTAGE OF RON MAIN'S
CONSULTATION TIME IN WASHINGTON I WOULD APPRECIATE
YOUR PASSING TO HIM THE FOLLOWING WRAPUP ON THE
PROSPECTS, QUESTION OF FUNDING ASIDE, FOR BEING ABLE
TO OBTAIN ADEQUATE PREMISES FOR MANAMA CHANCERY.
NEEDLESS TO SAY I WOULD BE PERSONALLY GRATEFUL FOR ANY
ADVICE AND ASSISTANCE YOU MIGHT BE ABLE TO GIVE HIM
ON THIS QUESTION THIS WEEK.
2. FOR MAIN: A) EXPANDING OUR PRESENT BUILDING (MANSOORI) REMAINS
A SENSIBLE OBJECTIVE AGAINST WHICH OTHER ALTERNATIVES
SHOULD BE MEASURED. SINCE YOUR DEPARTURE FOR HOME
LEAVE THERE HAVE BEEN THE FOLLOWING DEVELOPMENTS:
AMERICAN BUREAU OF SHIPPING CONTINUES TO APPEAR WILLING
TO RELEASE THIRD FLOOR APARTMENT WHENEVER IT FINDS
EQUALLY SUITABLE ALTERNATIVE GUEST HOUSE QUARTERS, BUT
WE ARE NOT AWARE IT MAKING ANY PROGRESS ALONG THIS LINE.
UNDERSTAND ABS LEASE EXPIRES APPROXIMATELY NEXT MAY.
B) BROWN AND ROOT HAS NOW NOTIFIED YOU IN
WRITING IT IS UNWILLING TO RELEASE EITHER OF REMAINING
TWO APARTMENTS IN BUILDING WITHIN NEAR FUTURE. MY
UNDERSTANDING IS THAT ONE LEASE EXPIRES EARLY NEXT
SUMMER AND THE OTHER EARLY NEXT FALL, BUT THERE ARE
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UNDOUBTEDLY RENEWAL PROVISIONS. I ASSUME FROM
NOTIFICATION TO YOU THAT BROWN AND ROOT WILL SEEK TO
RENEW LEASES AND THAT WE WILL HAVE TO BID AGAINST THEM
TO PERSUADE MANSOORI TO TURN THESE TWO APARTMENTS OVER
TO US. C) MANSOORI HAS NOTIFIED EMBASSY IN WRITING THAT
WHEN PRESENT LEASE EXPIRES NEXT OCTOBER HE INTENDS TO
RAISE RENT ON THREE APARTMENTS WE ARE CURRENTLY OCCUPYING
FROM BD 200 TO BD 300 PER MONTH. RENEWAL TERMS IN LEASE
WOULD APPEAR TO PROHIBIT THIS, BUT GIVEN RAPIDLY
ACCELERATING RENTAL LEVELS HERE, I AM NOT CATEGORICALLY
POSITIVE WE COULD HOLD HIM TO RENEWAL TERMS IN COURT.
IN ADDITION THERE IS ALWAYS PRACTICAL QUESTION OF EXTENT
TO WHICH THIS PARTICULAR LOCAL ROBBER BARON MIGHT GO IN
INDULGING IN TENANT TORTURE TACTICS WHICH CERTAIN OTHER
ESTEEMED MEMBERS OF LOCAL LANDLORD CLASS ARE USING TO
FORCE RENT INCREASES DESPITE PROTECTIVE PROVISIONS IN
LEASE TERMS. THERE IS NO QUESTION BROWN AND ROOT OR
OTHER BIDDERS WILL BE WILLING TO PAY MINIMUM BD 300,
PROBABLY MORE BY NEXT SUMMER, TO LEASE APARTMENTS IN
THIS BUILDING AND HENCE I CANNOT VISUALIZE OUR BEING
ABLE TO ACQUIRE ENTIRE BUILDING EDAJ5 9, 534. 8, 2#8:#
AVERAGE RENT FOR THE SIX APARTMENTS WOULD BE AT LEAST
BD 250 EACH, POSSIBLY BD 300 OR MORE.
3. IN ABSENCE AUTHORIZATION FROM DEPARTMENT TO PERSUE
FOREIGN SERVICE INSPECTORS' RECOMMENDATION THAT WE MOVE
TO ACQUIRE ADEQUATE CHANCERY PREMISES, WE HAD NO
ALTERNATIVE BUT TO REFUSE POSSIBILITY ACQUIRING THE
SIX APARTMENT SHAIKH ISA (MOHAMMAD JALAL) BUILDING
WHICH WE WERE LOOKING INTO UPON YOUR DEPARTURE. AT
TIME WE REFUSED IT WAS BEING OFFERED AT BD 300 PER
APARTMENT ON BASIS OUR TAKING ALL SIX. SUBSEQUENTLY
WE HAVE BEEN APPROACHED WITH COMPARABLE ALTERNATIVE,
A NEW SIX APARTMENT BUILDING ACROSS THE STREET FROM
AL BUSTAN BUT FACING GULF IN MANAMA SAILING CLUB PIER
AREA. THIS IS BETTER LOCATION THAN PRESENT CHANCERY
PREMISES AND WOULD SOLVE PRESENT AND POTENTIAL PARKING
PROBLEMS. THIS BUILDING, WHICH WILL BE COMPLETED IN
ABOUT THREE MONTHS, IS BEING OFFERED AT BD 300 PER
APARTMENT, IS NOT CENTRALLY AIR CONDITIONED, APPEARS
MARGINALLY BETTER THAN PRESENT BUILDING, AND WOULD BE
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UTILIZED IN APPROXIMATELY SAME WAY WE HAD PLANNED TO
USE MANSOORI BUILDING. ITS MAIN ADVANTAGE IS THAT IT
IS AVAILABLE WHILE PROSPECTS OUR ACQUIRING ALL OF
MANSOORI BUILDING APPEAR INCREASINGLY REMOTE. WE WOULD
OF COURSE HAVE TO MOVE QUICKLY TO ACQUIRE THIS PROPERTY.
4. WE HAVE ALSO BEEN OFFERED OPPORTUNITY TO RENT NEW
BUILDING BEING CONSTRUCTED ON GOVERNMENT ROAD, NEXT TO
BRITISH EMBASSY AND APPROXIMATELY ACROSS THE STREET
FROM HILTON HOTEL. COMPLETION IS PLANNED FOR APPROXI-
MATELY AUGUST. IT IS SIX FLOORS DESIGNED FOR GENERALLY
OPEN GROUND FLOOR, A MEZZANINE BALCONY COVERING
APPROXIMATELY HALF OF GROUND FLOOR AREA, TWO FLOORS OF
OFFICES, AND TWO FLOORS OF APARTMENTS EACH CONSISTING
OF TWO TWO-BEDROOM APARTMENTS. AT THIS STAGE OF CON-
STRUCTION MANY DESIGN VARIATIONS REMAIN POSSIBLE BUT
PROSPECTIVE TENANT WOULD HAVE TO MAKE FIRM COMMITMENT
IN NEXT FEW WEEKS. FOR INSTANCE, ARRANGEMENTS COULD BE
MADE TO PROVIDE FIVE RATHER THAN FOUR STAFF APARTMENTS
VARYING FROM ONE TO THREE BEDROOMS. THIS IS OF COURSE
PROBABLY THE BEST LOCATION IN BAHRAIN AND BUILDING WOULD
PROVIDE AMPLE AND IMPRESSIVE CHANCERY/STAFF CLSIDENCE
QUARTERS. BY ACQUIRING THIS BUILDING WE WOULD HAVE
ESSENTIALLY ACCOMPLISHED PURPOSE OF PROVIDING ADEQUATE
CHANCERY PREMISES FOR EMBASSY FOR FORESEEABLE FUTURE.
RENT IS BD 4800 PER MONTH, WHICH IS APPROXIMATELY
FIFTY PERCENT MORE THAN WE WOULD PAY FOR SAME AMOUNT
OF CHANCERY SPACE AND STAFF HOUSING OPERATING ON BASIS
OF ALTERNATIVES NOTED ABOVE. AGAIN, WE MUST MAKE
DECISION WITHIN A FEW WEEKS IF THIS PROPERTY IS TO
REMAIN AVAILABLE TO US.
5. HOPE YOU WILL DISCUSS THIS SITUATION WITH WILLIAMSON
TO EXTENT HIS BUSY SCHEDULE PERMITS. I REALIZE DEPARTMENT
IS FACING SEVERE BUDGETARY PRESSURES AND THAT ALL OF
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ACTION NEA-10
INFO OCT-01 ISO-00 /011 W
--------------------- 103612
P 251126Z NOV 74
FM AMEMBASSY MANAMA BAHRAIN
TO SECSTATE WASHDC PRIORITY 1673
LIMITED OFFICIAL USE SECTION 2 OF 2 MANAMA 0987
FOR NEA/EX WILLIAMSON
E.O. 11652: N/A
TAGS : ABLD, BA
SUBJECT : HOUSING OF CHANCERY IN MANAMA
RENTS NOTED
ABOVE SOUND OUTRAGEOUS BY WASHINGTON STAN-
DARDS. FACT REMAINS THAT WE ARE NOT ADEQUATELY HOUSED
HERE AND THAT INCREASING PRESSURE ON REAL ESTATE
MARKET CONTINUES TO DRIVE RENTS UP. THREE YEAR HISTORY
OF HOUSING SITUATION IN BAHRAIN, CENTERING ON THE SAD
STORY OF AL BUSTAN, GIVES AMPLE EVIDENCE THAT OUR
INABILITY TO MAKE COMMITMENTS AT TODAY'S HIGH RENTAL
PRICES WILL TRAP US INTO HAVING TO PAY MUCH MORE FOR
MUCH LESS IN THE FUTURE.
6. FYI: PLEASE TOUCH BASE WITH THE DESK, PARTICULARLY
ON QUESTION STATUS PROPOSED AID TECHNICAL ADVISORS.
CURRENT THINKING IS THAT UP TO FIVE MAY ARRIVE BY NEXT
SUMMER WITH AS MANY AS TEN ON HAND BY MID-1976. WE
ARE PROCEEDING ALONG LINES OF HAVING GOB PROVIDE HOUSING
AS PART OF ITS CONTRIBUTION TO COST SHARING, WITH
SHIRAWI INDICATING ABILITY TO PLACE UP TO TEN OF THE
AMERICAN ADVISORS IN BUNGALOWS RESERVED FOR GOVERNMENT
USE AT AWALI. HENCE IT APPEARS LIKELY THAT EMBASSY
WILL NOT HAVE DIRECT RESPONSIBILITY FOR HOUSING TECHNICAL
ADVISORS ALTHOUGH SOME OFFICE SPACE IN CHANCERY, AND
PERHAPS TRANSIENT APARTMENT, MAY BE REQUIRED. END FYI.
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