money/ Bahrain...

Early 20th Century reforms

In 1911, a group of Bahraini merchants demanded restrictions on the British influence in the country. The group's leaders were subsequently arrested and exiled to India. In 1923, the British replaced Sheikh Issa bin Ali with his son. Some clerical opponents and families such as al Dossari left or were exiled to Saudi Arabia and Iran.^[51] Three years later the British placed the country under the de facto rule of Charles Belgrave who operated as an adviser to the ruler until 1957.^[52][53] Belgrave brought a number of reforms such as establishment of the country's first modern school in 1919, the Persian Gulf's first girls school in 1928 and the abolition of slavery.^[54] At the same time, the pearl diving industry developed at a rapid pace.
In 1927, Rezā Shāh, then Shah of Iran, demanded the return of Bahrain in a letter to the League of Nations. A move that prompted Belgrave to undertake harsh measures including encouraging conflicts between Shia and Sunni Muslims in order to bring down the uprisings and limit the Iranian influence.^[55] Belgrave even went further by suggesting to rename the Persian Gulf to the "Arabian Gulf"; however, the proposal was refused by the British government.^[52] Britain's interest in Bahrain's development was motivated by concerns over Saudi and Iranian ambitions in the region.

Discovery of petroleum and WWII

The Bahrain Petroleum Company (Bapco), a subsidiary of the Standard Oil Company of California (Socal),^[56] discovered oil in 1931 and production began the following year. This was to bring rapid modernisation to Bahrain. Relations with the United Kingdom became closer, as evidenced by the British Royal Navy moving its entire Middle Eastern command from Bushehr in Iran to Bahrain in 1935.^{[57][self-published source?]}
Bahrain participated in the Second World War on the Allied side, joining on 10 September 1939. On 19 October 1940, four Italian SM.82s bombers bombed Bahrain alongside Dhahran oilfields in Saudi Arabia,^[58] targeting Allied-operated oil refineries.^[59] Although minimal damage was caused in both locations, the attack forced the Allies to upgrade Bahrain's defences, an action which further stretched Allied military resources.^[59]
After World War II, increasing anti-British sentiment spread throughout the Arab World and led to riots in Bahrain. The riots focused on the Jewish community.^[60] In 1948, following rising hostilities and looting,^[61] most members of Bahrain's Jewish community abandoned their properties and evacuated to Bombay, later settling in Israel (Pardes Hanna-Karkur) and the United Kingdom. As of 2008, 37 Jews remained in the country.^[61] In 2008, Bahrain's king appealed to former-Bahraini Jews abroad in the US and UK to return to the country and had also offered compensation and citizenship.^[60]
In the 1950s, the National Union Committee, formed by reformists following sectarian clashes, demanded an elected popular assembly, removal of Belgrave and carried out a number of protests and general strikes. In 1965 a month-long uprising broke out after hundreds of workers at the Bahrain Petroleum Company were laid off.^[62]

Drop of Iranian claim

Iran's parliament passed a bill in November 1957 declaring Bahrain to be the 14th province of Iran,^[63] with two empty seats allocated for its representatives. This action caused numerous problems for Iran in its international relations, especially with some United Nations bodies, Britain, Saudi Arabia, and a number of Arab countries.^[55] At this time, Britain set out to change the demographics of Bahrain. The British policy of "Deiranisation" of the country consisted of importing large numbers of different Arabs as well as other ethnic groups from the British colonies to work as labourers.^[55]
In 1965, Britain began dialogue with Iran to determine their borders in the Persian Gulf. Before long extensive differences over borders and territory came to light, including the dispute over the dominion of Bahrain. The two were not able to determine the maritime borders between the northern and southern countries of the Persian Gulf.^[64] Eventually Iran and Britain agreed to put the matter of Dominion of Bahrain to international judgment and requested the United Nations General Secretary take on this responsibility.^[65][66]
Iran pressed hard for a referendum in Bahrain in the face of strong opposition from both the British and the Bahraini leaders.^[55] Their opposition was based on Al Khalifa's view that such a move would negate 150 years of their clan's rule in the country. In the end, as an alternative to the referendum, Iran and Britain agreed to request the United Nations conduct a survey in Bahrain that would determine the political future of the territory.
Report no. 9772 was submitted to the UN General Secretary and on 11 May 1970, the United Nations Security Council endorsed Winspeare's conclusion that an overwhelming majority of the people wished recognition of Bahrain's identity