Synod established a small finance task force to look at the financial situation and make a report.  We are particularly grateful to John Banfield (and Mary) for undertaking the chairmanship and co-ordination of the task force.  One of the chief items on the Diocesan Budget is the provision of the ministry at Christ Church, Aden.  The work undertaken at Aden through the two clinics, the congregation and the guest facility if very significant and contributes much to the lives of people whose lives otherwise are not rich.

Peter and Nancy Crooks have just been joined by a couple from New Zealand; William Harrison will be teaching English Language and giving some help with the maintenance work at the Church compound.  Jeannette, his wife, is a qualified nurse and will play a significant role in the life of the two clinics.

In Bahrain, the Rev'd Victor Salve is now on the staff of the Cathedral but is continuing his association with the Ministry to seafarers in the Port of Bahrain.  Across the water in Qatar we are looking forward to the beginning of building work for the new church.  There remains an enormous sum of money to be raised in order to complete this very exciting and significant project.

Although there is so much that is a source and cause for joy in the Diocese at the moment, it would not be right to pretend that everything is perfect.  In some ways, the life of the Church in Oman has never been easy.  We are partners with the Reformed Church in America in the Protestant Church of Oman, which comprises people from a great variety of backgrounds, far wider than represented simply by the two parent bodies.  Recently there has been a feeling of unhappiness and conflict, and the result is that the Anglican Chaplain, the Rev'd Mike Clarkson has left.  We pray very much for him and Linda as they seek the right next post.  The proposal is that an interim Anglican Chaplain goes in for a period of up to a year to work towards a new Constitution and a new Church Council, more representative of all the congregations within the PCO.  Please pray for everyone involved in this far from easy situation.

In Baghdad the life and ministry of St. Georges goes on with a devoted team of lay leaders.  There are about nine hundred people associated with the Church on any "normal" Sunday.  Canon Andrew White continues to go into Baghdad every six weeks or so.  It is possible for him to hold a service on the edge of the security zone.  Christians who are normally at St. George's can come from outside the zone, while those living within the zone can also attend.  This link is further symbolised by there being one joint Church Council for the Church at St. George's and the Church in the zone.  We regard the maintenance of the ministry at St. George's Baghdad as being a key element of Diocesan outreach.  It is now quite an expensive undertaking.

Towards the end of last year I wrote to the Bishops of the United Kingdom and Ireland and of the Episcopal Church of the USA to ask if they could help in any way.  The response has been most encouraging.

The Rev'd Christopher Edgar has left Kuwait and is about to go to Tehran under the leadership of Bishop Azad Marshall.  As well as giving priestly ministry in Tehran he will also be heading up a training programme for new clergy and lay leaders.  This is a significant breakthrough and we give thanks that he has been given permission by the authorities to take up residence.  Andy Thompson, who has been working in the Emirates during the past year has been appointed as Chaplain in Kuwait.

Gill and Marjorie Linden have left Ras Al Khaimah and Fujeirah after two years good service.  We are grateful for all that they have done and wish them well in their retirement back in their native Australia.

In Cyprus, the new chaplaincy in Famagusta is now established with Robin and Val Brookes in residence.  Meanwhile, in Ayia Napa, the Rev'd Michael Crawford has been able to hold an annual meeting with the election of churchwardens and a church council so now the Chaplaincy is a fully fledged one.

An exciting development in the Paphos chaplaincy has been the opening up and dedication of St. Luke's at Prodromi, now making three worship places within the area of that quite widespread chaplaincy.

After service as an Army chaplain, the Rev'd Rod Price and his wife Beryl, planned to retire to Cyprus.  He came to do locum duty in Limassol and remains as a full-time chaplain; a very happy result for all.

For several years I have had the vision of what I call a "Holy House" in Cyprus.  This has now come to pass in the form of a simple Retreat House in the village of Kapedes, between Nicosia and Troodos.  Maggie Le Roy, our spirituality advisor, will have the oversight of it.

The development of a Church Centre in Qatar is an enormous and daunting project.  In order that Archdeacon Ian Young may be able to concentrate on what is needed for the development in Qatar, he has relinquished the Archdeaconry.  I have now appointed him Archdeacon Emeritus and have decided to revert to the earlier position of having two archdeaconries, one for Cyprus and the other of the Gulf.  The Deans of the two Cathedrals have agreed to take on these roles.  We keep all three persons in our prayers.

The Jerusalem and the Middle East Church Association has been closely linked with the Diocese.  Mrs. Vanessa Wells, its General Secretary for many years, retired in June.  She has been a very good friend of this Diocese throughout her time with J&MECA and we thank her for that, wishing her all the best for an active retirement.

The Diocese of Exeter continues to express our companionship link in all sorts of helpful ways.  Encouraged by the Bishop, Brigadier Nigel Speller and the Liaison Group are always ready to help.  The Diocese responded magnificently to the Bishop's appeal for Baghdad and we are deeply grateful.

Jane and I were recently in the USA attending the General Convention of the Episcopal Church.  We remain very conscious of our link with ECUSA and also the continued generosity of the Good Friday Offering and the United Thank Offering.  In September, we shall welcome to Cyprus the Secretary of the Australian Board of Mission, Carolyn Kitto.  The Board of Mission is keen to assist the Province through the funding of agreed projects including the Qatar development.

The Diocese remains immeasurably grateful for the prayer and support of the Friends and our thanks go especially to Terry Finney, Mary Banfield and members of the Committee.  we could not have a happy occasion like this service without the welcome of the people of All Hallows by the Tower.  To you all who do so much to make this occasion a very special one, we say a heartfelt "Thank You".

+Clive
Cyprus and the Gulf
President Bishop