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Economic Department

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Geograplv Population National Income bull Political Organi~ation bullbullbullbullbullbull A~r1culture and Food Supply bull bull Industry bull Transport

Ba~ng Structure st~te Budget and Public Debt bull

Honey and Prices bull bull bull bull bull

(Foreign Jxchange Pod t1on 1shyf

Foreign rade bull bull bull Balance of P~menta ~raquo

The Dollar Problem

Conclusions bull bull bull bull bull

bull

bull

bull Bi bliograpey bull bull bull bull bull bull bull bull bull bull bull bull bull bull

2

3

s 7

8

9

10

12

13

17

19

20

22

iOCpound112Stmiddot PffRraquolaUon National Incmu

Egypt ~ing at the northeastern corner of Afr1oa baa a total area of

)86110 quare m11ea (or 1000000 square kilometers) Of this area over 9S

per cent ia barren desert and the rest is accounted for bw the Mile Vall~

and the Delta which contain onJ 1)200 square miles

During the last fUty rears the population of Egypt has nearly doubled

At the census of 194 the total population was 190 m1111on as corapared to

96 million in 189 when the flrat census wa~ taken As a result of the

rapid growth of ita population Egypt is now one of the most denselJ populated

countries in the world The 193 census showed a population density of 1198

persons per square mile (463 per kilometer) It must be added that according

to t~tian ceneua practice figure on population density relate only to the

Delta and the Nile Valley exclusive of the outlJing desert areas Over 99

per o~mt of the 193 population numbering 1$9 million lived 1n the Delta

and the ~gtfile Valley he Mohammedans representing over 91 per cent of the

population in 1937 predominate in all areas of Egypt be estimated future

growth of ~gypt 1 e population ranges between 208 and 240 million by 1970

This estimate represents an increase by 10-25 per cent over 1947 population

1~ official estimate of the national income of Egypt is available A

recent estiJnate based on asAumed per capita income of US $92 gives the

national income of US $17) million for 1946 ~~other estimate for 1940

yields the total income as $159 million or $956 per capita The e~timate

of total income for 1946 though comprgtring favorably v1 th that for lltJL~O in

nominal value shovw no expaneion in rPa1 income if taken into aeaount the

increase 1n whole~ale prices the index of which rose from 1~4 in l94o to 31

Geograplv Population National Income bull Political Organi~ation bullbullbullbullbullbull A~r1culture and Food Supply bull bull Industry bull Transport

Ba~ng Structure st~te Budget and Public Debt bull

Honey and Prices bull bull bull bull bull

(Foreign Jxchange Pod t1on 1shyf

Foreign rade bull bull bull Balance of P~menta ~raquo

The Dollar Problem

Conclusions bull bull bull bull bull

bull

bull

bull Bi bliograpey bull bull bull bull bull bull bull bull bull bull bull bull bull bull

2

3

s 7

8

9

10

12

13

17

19

20

22

iOCpound112Stmiddot PffRraquolaUon National Incmu

Egypt ~ing at the northeastern corner of Afr1oa baa a total area of

)86110 quare m11ea (or 1000000 square kilometers) Of this area over 9S

per cent ia barren desert and the rest is accounted for bw the Mile Vall~

and the Delta which contain onJ 1)200 square miles

During the last fUty rears the population of Egypt has nearly doubled

At the census of 194 the total population was 190 m1111on as corapared to

96 million in 189 when the flrat census wa~ taken As a result of the

rapid growth of ita population Egypt is now one of the most denselJ populated

countries in the world The 193 census showed a population density of 1198

persons per square mile (463 per kilometer) It must be added that according

to t~tian ceneua practice figure on population density relate only to the

Delta and the Nile Valley exclusive of the outlJing desert areas Over 99

per o~mt of the 193 population numbering 1$9 million lived 1n the Delta

and the ~gtfile Valley he Mohammedans representing over 91 per cent of the

population in 1937 predominate in all areas of Egypt be estimated future

growth of ~gypt 1 e population ranges between 208 and 240 million by 1970

This estimate represents an increase by 10-25 per cent over 1947 population

1~ official estimate of the national income of Egypt is available A

recent estiJnate based on asAumed per capita income of US $92 gives the

national income of US $17) million for 1946 ~~other estimate for 1940

yields the total income as $159 million or $956 per capita The e~timate

of total income for 1946 though comprgtring favorably v1 th that for lltJL~O in

nominal value shovw no expaneion in rPa1 income if taken into aeaount the

increase 1n whole~ale prices the index of which rose from 1~4 in l94o to 31

iOCpound112Stmiddot PffRraquolaUon National Incmu

Egypt ~ing at the northeastern corner of Afr1oa baa a total area of

)86110 quare m11ea (or 1000000 square kilometers) Of this area over 9S

per cent ia barren desert and the rest is accounted for bw the Mile Vall~

and the Delta which contain onJ 1)200 square miles

During the last fUty rears the population of Egypt has nearly doubled

At the census of 194 the total population was 190 m1111on as corapared to

96 million in 189 when the flrat census wa~ taken As a result of the

rapid growth of ita population Egypt is now one of the most denselJ populated

countries in the world The 193 census showed a population density of 1198

persons per square mile (463 per kilometer) It must be added that according

to t~tian ceneua practice figure on population density relate only to the

Delta and the Nile Valley exclusive of the outlJing desert areas Over 99

per o~mt of the 193 population numbering 1$9 million lived 1n the Delta

and the ~gtfile Valley he Mohammedans representing over 91 per cent of the

population in 1937 predominate in all areas of Egypt be estimated future

growth of ~gypt 1 e population ranges between 208 and 240 million by 1970

This estimate represents an increase by 10-25 per cent over 1947 population

1~ official estimate of the national income of Egypt is available A

recent estiJnate based on asAumed per capita income of US $92 gives the

national income of US $17) million for 1946 ~~other estimate for 1940

yields the total income as $159 million or $956 per capita The e~timate

of total income for 1946 though comprgtring favorably v1 th that for lltJL~O in

nominal value shovw no expaneion in rPa1 income if taken into aeaount the

increase 1n whole~ale prices the index of which rose from 1~4 in l94o to 31

- 2 -

in 1946 Bowever 1n view of the ~~bitrary nature of the estimate it is

difficult to oompare the total inoome in real terms

Pol~Uggl Otcshatioa

Since 1517 Egypt vas a part of the Turkish ~mpire After 1882 the

British Ar~ occupied Egypt Between 1914 and 1922 Egypt was the British

Protectorate Since 1922 Egypt has been an independent state

The form of llgptian Government is a consti tutional monarchy The

throne is hereditary in the fami~ of Mohamed Ali The Oon~titution was

fir~t established in 1923~ but later vas abrogated in 193 and reintroduced

in 1935 The Constitution in~titutes a two-chamber parliament -- The Senate

and the Chamber of Deputies The members of the parliament are elected by

a nniver0al male suffrage except two-fifths of the members of the Senate

are nominated by the King Soldier~ have no vote in the parliament e1eot1on

The cabinet h nominated by the Elng but responsible to the parliament

Egypt was a member of the Leat-Ue of lations It nov belongs to the

United Nations Since its Independence in 1922 Egypt haR several que~tions

at issue under dispute with the Britih Chief among these were the British

Army of Occupation and the Sudan Under the Anglo-Ygyptian Treaty of 1936

the Eri tish Mtli tary Occupation of Egypt was terminated but the mili tarr

forces were transferred to the Suez Canal Zone until l~gypt is sufficiently

powertul to undertake the defense of the Canal and the question of sovereignty

of the SUdan was left in suspense -- the Sudan remains jolntlT ruled by the

British and the Egyptians The Egyptians are not satisfied with the ~ettleshy

rnent of the Sudan Their position is that for the unity of Egypt the Sudan

must be put under the mgyptian Crown In recent years negotiat1ons between

__

the two countries have been resumed The questions at iRsue are the evacuashy

tion of the British foroes and the increase in the Egyptian share of the joint

administration of the Sudan So far no agreemen hasbull as yet been reached

Aa a member of the Arab Leag11e Egypt 18 against the partitietn of

Palestine Since the termination of the Bri thh fmiddotfandate in Palestine on

~ 15 1948 an Egyptian Expeditionary force has been dispatched and h now

fighting against Israel in the Negeb desert of the Southern Pale~tina The

United lations have intervened in thGgt Pal~stine issue and are trying to UPe

its office as a mediator to restore peace in this area So far the war in

Palestine is etlll going on and no immediate settlement is in ~ight

Agriggltwe pd lorul sectraquopelz

Egypt is a predominantly agricultural country In 1937 71 per cent

of the gainful~ emplo7ed population were directly engaged in ~~ieulture

and the proportion of the total population directly dependent on agriculture

vas 6) per cent

In 1944 the total cultivated area of Egypt waa 5 million feddansf

which represented only less than 25 per cent of the total area of the eountrr

The increase in cultivated 8Tea during the last thirt7 yeara was insignificant

However the crop area rose considerably-- from 77 million feddane tn 1912

to 93 million feddans during 194J-44 Thh increase 1a ohiefl7 due to the

favorable climate and a developed sy~tem of irrigation and thus it is

possible to grow over a wide area two or even three crops a year on the same

plot of land

l One feddan equals 1038 acres

- 4-

Only lees than one-half percent of the land is state-owned leaving

the re~t in private ownership The distribuion of private land-ownership

is extremely uneeUal In l94LL 70 per cent of landowners owned one feddan

or less and their combined holdings represented only 13 per cent of the land

On the other hand 05 per cent of the landowners held farms over 50 feddane

and their total holdings amounted to j6 per cent of the total land llideum

proprietors with farms from S to 10 feddans owned 30 per cent of t~~ land

and those with 1 to 5 feddans 20 per cent In recent years the number of

amall holdings up to l feddan was 7 per cent higher than that in 1939

The most important crop of Egypt h cotton Normally Egypt produces

6o per cent of the worlds output of long staple cotton (over 1-38 inches)

and 25-40 per cent of the medium staple (1-18 to 1-38 inches) Exports of

cotton and its by-products normally acoount for about 75-85 per cent of the

value of Egypt e total export trade Prior to tb8 war the total cotton-

growing area averaged 18 million feddans representing 20 per cent of the

crop area During the reeent war the area undeJgt cotton was drastically

reduced in order to increase the production of foodlaquotuffa In 1942 and

194) it was less than half the prewar average amounting to only 700000

feddans In 1947 the area increased to lJ million feddana and the official

estimated production of cotton was 6J million kantarell as compared with

the annual average of 9J million kantare during 1937-1939

Following cotton in importance are clover (or berseem) maize and

wheat Together these four crops oeoupy three-fourths of all Egypts crop lbullillt

area The remaining area is accounted for b7 rice barley bull ~ fer_

l One kantar equals to 9905 pounds

- 4-

Only lees than one-half percent of the land is state-owned leaving

the re~t in private ownership The distribuion of private land-ownership

is extremely uneeUal In l94LL 70 per cent of landowners owned one feddan

or less and their combined holdings represented only 13 per cent of the land

On the other hand 05 per cent of the landowners held farms over 50 feddane

and their total holdings amounted to j6 per cent of the total land llideum

proprietors with farms from S to 10 feddans owned 30 per cent of t~~ land

and those with 1 to 5 feddans 20 per cent In recent years the number of

amall holdings up to l feddan was 7 per cent higher than that in 1939

The most important crop of Egypt h cotton Normally Egypt produces

6o per cent of the worlds output of long staple cotton (over 1-38 inches)

and 25-40 per cent of the medium staple (1-18 to 1-38 inches) Exports of

cotton and its by-products normally acoount for about 75-85 per cent of the

value of Egypt e total export trade Prior to tb8 war the total cotton-

growing area averaged 18 million feddans representing 20 per cent of the

crop area During the reeent war the area undeJgt cotton was drastically

reduced in order to increase the production of foodlaquotuffa In 1942 and

194) it was less than half the prewar average amounting to only 700000

feddans In 1947 the area increased to lJ million feddana and the official

estimated production of cotton was 6J million kantarell as compared with

the annual average of 9J million kantare during 1937-1939

Following cotton in importance are clover (or berseem) maize and

wheat Together these four crops oeoupy three-fourths of all Egypts crop lbullillt

area The remaining area is accounted for b7 rice barley bull ~ fer_

l One kantar equals to 9905 pounds

- s-

beans and augar cane fJhe total acreage under cereals (Le wheat mahe

barl-y rice and _ IIIhaa) represents over half the total crop area

The main foodstuffs or the population are wheat mai1e and millet

Before the war Egypt was self-sufficient in foodstuffs with hardly ~ sur~

plus for exportation At present with the increase o 20 per cent tn the

population dnce 19)7 and a serious fall in the import of fertilhers the

production of cereals is insufficient tor local consumption In 1947 there

was a deficit of 1 million ton~ of wheat and maize Allocations of Jei -fir middot i i- - (1

-lr ~ middot amp14 AlltJ~llUe Ogazai aatiOA to Egypt for that year were 270 bull 000 tons of wheat

and 290000 of maize the rest of the deficit had to be imported from other

countries ~art of rice production was exported in exchange for wheat and

maise

The indust17 of Egypt owee 1ts development to two world ware Owing

to the cessation of foreign imports during the first war ~ industries were

expanded or created to meet local demand The recent war has greatl7 encouraged

the local indastey because of the ahortap of importsthe consequent rise bulll

in pri~s and increased demande arhtng trom the presence ot Alli ed Jorcea

in the country However there are several factors which limit the develo-p-

ment of the Egyptian 1ndustey

( l) The low purchasing power of the macs of the population

( 2) The prospect of an export market tor the EQPtian indu~t-ey

ia not favorable as Egfpts industry 1s not 1n a position

to compete with that of foreign -- partieularl7 European --

industrial countries

l Here and elsewhere in this paper tonnage refers to the metrto ~atem

-6-

(3) The lack cf cheap power such as fueb coal and

electric power However there is a huge h7dro-

electric power project under progress and when

completed it will ease to some extent the power

problem

The main industries of Egypt are thoRe of proaeaalng local raw mate-

rials cotton ginning and prebulls1ng cotton eeed cruBhing cotton spinning

and weaving and trUgaf manufacture Following these are cement petroleWl

soap and other industries Among these industries petroleum and cotton

spinning and weaTing haTe shown great expansion in recent years During the

last decade the petroleum output increased sixfold and cotton textile 70

per cent In 1946 output of all Egyptian cotton mills was 220 million metres

of cloth as compared with 150 million metres in 1939 The 1946 output of

cotton textile representedtwo-thirds of the countrys consumption of cotton

piece goods for that year

In 194 crude petroleum production was 93 million barrelsl as com-

pared with 16 million barrels in 19)8 At pregent refinery production ot

petroleum in Egypt is insufficient for local con~umption In 1947 contumption

of principal petroleum products amounted to 24 million tone while refinery

output was only 16 million tons in that year leaving a deficit of 08 million

tona

In other industries bull uch as sugar cement and soapp local output meets

entireq or near]yen all the countrys requirements

A huge ~ro-electric power project at Aswan Dam ts under progress

It is to be completed 1n 1952 When completed the total installed paver

lJ One metric ton of Egyptian crude oll equals barrell of 42 gallonsmiddotmiddot

)

-6-

(3) The lack cf cheap power such as fueb coal and

electric power However there is a huge h7dro-

electric power project under progress and when

completed it will ease to some extent the power

problem

The main industries of Egypt are thoRe of proaeaalng local raw mate-

rials cotton ginning and prebulls1ng cotton eeed cruBhing cotton spinning

and weaving and trUgaf manufacture Following these are cement petroleWl

soap and other industries Among these industries petroleum and cotton

spinning and weaTing haTe shown great expansion in recent years During the

last decade the petroleum output increased sixfold and cotton textile 70

per cent In 1946 output of all Egyptian cotton mills was 220 million metres

of cloth as compared with 150 million metres in 1939 The 1946 output of

cotton textile representedtwo-thirds of the countrys consumption of cotton

piece goods for that year

In 194 crude petroleum production was 93 million barrelsl as com-

pared with 16 million barrels in 19)8 At pregent refinery production ot

petroleum in Egypt is insufficient for local con~umption In 1947 contumption

of principal petroleum products amounted to 24 million tone while refinery

output was only 16 million tons in that year leaving a deficit of 08 million

tona

In other industries bull uch as sugar cement and soapp local output meets

entireq or near]yen all the countrys requirements

A huge ~ro-electric power project at Aswan Dam ts under progress

It is to be completed 1n 1952 When completed the total installed paver

lJ One metric ton of Egyptian crude oll equals barrell of 42 gallonsmiddotmiddot

)

of the generating station will be 487000 RP (horsepower) and the total

amount of ene~gy available f~om the power station will be around 1645 milshy

lion KWH (kilowatt-hour) annually Thh power project will greatly assist

the development of local - particularly the steel and fertilizers - industries

TriJIR r f47Pts internal communications rely chiefly on ratlw~s At present

Egypt has a quite complete railwq network During the year 1944-45 the

total length of the Egyptian ra11wqa was 5452 kilomttters of which 4065

kilometers ( 75 per cent) were state-owned and the rest was in private ownershy

ship ln 1944-45 the state railwqs had 1631 freight ears 1018 J)assenshy

ger cars and a total of 46 locomotives and carried 75 million tons of

merehandi~e and 6o million pas~engers with 2261 million paasenger kiloshy

meters In the same year the total receiptamp of state ra1lwqs were bullE 147

million and total expenditures were ~ 72 million River trangport is

conducted by sailing boah and small steamcratt Road transport h poor

A large part of the networks of roads and waterwqs runs parallel to railshy

w~s resulting in overlapping in transport faeilitie9

The external communications of mgypt depend mainly on shipping as

the Nile Valley and the Delta are surrounded on three sides by desert As

of June )0 19)9 the ~gyptian Merchant Marine had a total of 109825 gross

tons In 1940 exclusive of war traffic )896 steamers entered ~gyptian

ports with a total of 11 million tons Aside from shipping for external

transport the igrptian raihrqe are connected with those of Pales tina and

since the recent war eir transport has developed very ra~1dly

In 1946 there were 5057 vessels in transit through the Suez Canal

with a total net tonnage of )3 million tone Dues paid to Fgrpt 1n dollars

- 8-

by ships in transit from hard currency countries are estimated at $8 million

for 1948

In 1937 the Egyptian labor force totalled 61 million of which

ampgrioul ture represented 7l per cent mining manufaoturtnc and building

industries 10 percent and service industries (transport commerce finance

public social and personal services) 19 per cent The une of more than two-

thi rds of 1 ta labor force 1n agriculture shows the highq agricultural char-

acter of the Bgyptian econo~ This occupational distribution clearq 1nd1-

cates the deeirabilit7 of developing mining manufaeturtng and building t

industries which together account for too emallPercentage of the total

labor force

The wages are much too low by western standards In 1938 the average

daily wage for industrial workers was 88 mjrJl (or US $044 at the then

exchange rate) for men and 43 mm for women wages paid to children were

onlyen 24-29 mm a dq By January 1946 the average induetrial wage for a

worki~~ week exceeding SO hours was bullE 12) (approximately US $520 or

about 205 mm a d~ Theee wagea are however relatively high aa compared

to at~icultural wages Most of ogrieultural workers work less than 180 dqe

a year and receive monq wages estimated at iE 21 (approximately us $87)

a year During recent years ~ agricultural workers have entered industry

because of the attractive wages and the increasing demand for industrial

workers

lJ mm refers to m1lliema One Egyptian pound eoual~ 1000 milliemes

- 9-

Egypt bas no central bank in its full sense ihe lfaUonal Bank of

Egypt fulfills only par of the normal tunot1one of a central bank At

present it is vested with the power to issue currency notes carries the

bulk of JQJJt1an GoTernment deposits and llterling )alancee and acts as the

Government agent for loan flotations and dividend pa7ments But it does not

perform the main functions of a central bank tmeh ae those of bankers bank

lender of last resort and controller ot the volume of credit through manipu-

btions of rediscount rates and open market operations After the de-parture

ot Egypt from the gterling area the need for a central bank in Egypt became

acute The GoTernment 1 s intention is to institute a central bank which would

be given the full power to carry out its central banking operations At

pre~ent the Government appears to favor the nationali~ation of the Issue

Department of the National Bank of Egypt for this purpose

Recently a dgnificant change bas been made in the Egyptian monetary 8

system In July 1947 a new law went into effect authorising the Mlnbtry

ot Finance to ilsue Egyptian TreaslUJ bills up to the llllount of itE SO mil-

lion as 50 per cent cover ln lieu of gold for ~ additional note issue

made by the National Bank of Egnt Up to September 1916 half of the note

l~sue in 3grpt had to be covered bT gold and the other halt by securities

mainly British By 1916 thh requirement of gold cover of the note issue

was guspended and British Treasurr billa were used instead of gold because

obtaining gold supply to cover the increasing issue of currency notes was

d_tfficult during the first World middotwmiddotar This meaeure whleh vas then to be a

temporary one neverthelege lasted until July 1948 In other Yords between

September 1916 a~ JuT 1948 ~gyptian note is~ue was almoAt entirely covered

by British Treasury bills and securities The new measure to u~e Egyptian

- 8-

by ships in transit from hard currency countries are estimated at $8 million

for 1948

In 1937 the Egyptian labor force totalled 61 million of which

ampgrioul ture represented 7l per cent mining manufaoturtnc and building

industries 10 percent and service industries (transport commerce finance

public social and personal services) 19 per cent The une of more than two-

thi rds of 1 ta labor force 1n agriculture shows the highq agricultural char-

acter of the Bgyptian econo~ This occupational distribution clearq 1nd1-

cates the deeirabilit7 of developing mining manufaeturtng and building t

industries which together account for too emallPercentage of the total

labor force

The wages are much too low by western standards In 1938 the average

daily wage for industrial workers was 88 mjrJl (or US $044 at the then

exchange rate) for men and 43 mm for women wages paid to children were

onlyen 24-29 mm a dq By January 1946 the average induetrial wage for a

worki~~ week exceeding SO hours was bullE 12) (approximately US $520 or

about 205 mm a d~ Theee wagea are however relatively high aa compared

to at~icultural wages Most of ogrieultural workers work less than 180 dqe

a year and receive monq wages estimated at iE 21 (approximately us $87)

a year During recent years ~ agricultural workers have entered industry

because of the attractive wages and the increasing demand for industrial

workers

lJ mm refers to m1lliema One Egyptian pound eoual~ 1000 milliemes

- 9-

Egypt bas no central bank in its full sense ihe lfaUonal Bank of

Egypt fulfills only par of the normal tunot1one of a central bank At

present it is vested with the power to issue currency notes carries the

bulk of JQJJt1an GoTernment deposits and llterling )alancee and acts as the

Government agent for loan flotations and dividend pa7ments But it does not

perform the main functions of a central bank tmeh ae those of bankers bank

lender of last resort and controller ot the volume of credit through manipu-

btions of rediscount rates and open market operations After the de-parture

ot Egypt from the gterling area the need for a central bank in Egypt became

acute The GoTernment 1 s intention is to institute a central bank which would

be given the full power to carry out its central banking operations At

pre~ent the Government appears to favor the nationali~ation of the Issue

Department of the National Bank of Egypt for this purpose

Recently a dgnificant change bas been made in the Egyptian monetary 8

system In July 1947 a new law went into effect authorising the Mlnbtry

ot Finance to ilsue Egyptian TreaslUJ bills up to the llllount of itE SO mil-

lion as 50 per cent cover ln lieu of gold for ~ additional note issue

made by the National Bank of Egnt Up to September 1916 half of the note

l~sue in 3grpt had to be covered bT gold and the other halt by securities

mainly British By 1916 thh requirement of gold cover of the note issue

was guspended and British Treasurr billa were used instead of gold because

obtaining gold supply to cover the increasing issue of currency notes was

d_tfficult during the first World middotwmiddotar This meaeure whleh vas then to be a

temporary one neverthelege lasted until July 1948 In other Yords between

September 1916 a~ JuT 1948 ~gyptian note is~ue was almoAt entirely covered

by British Treasury bills and securities The new measure to u~e Egyptian

- 9-

Egypt bas no central bank in its full sense ihe lfaUonal Bank of

Egypt fulfills only par of the normal tunot1one of a central bank At

present it is vested with the power to issue currency notes carries the

bulk of JQJJt1an GoTernment deposits and llterling )alancee and acts as the

Government agent for loan flotations and dividend pa7ments But it does not

perform the main functions of a central bank tmeh ae those of bankers bank

lender of last resort and controller ot the volume of credit through manipu-

btions of rediscount rates and open market operations After the de-parture

ot Egypt from the gterling area the need for a central bank in Egypt became

acute The GoTernment 1 s intention is to institute a central bank which would

be given the full power to carry out its central banking operations At

pre~ent the Government appears to favor the nationali~ation of the Issue

Department of the National Bank of Egypt for this purpose

Recently a dgnificant change bas been made in the Egyptian monetary 8

system In July 1947 a new law went into effect authorising the Mlnbtry

ot Finance to ilsue Egyptian TreaslUJ bills up to the llllount of itE SO mil-

lion as 50 per cent cover ln lieu of gold for ~ additional note issue

made by the National Bank of Egnt Up to September 1916 half of the note

l~sue in 3grpt had to be covered bT gold and the other halt by securities

mainly British By 1916 thh requirement of gold cover of the note issue

was guspended and British Treasurr billa were used instead of gold because

obtaining gold supply to cover the increasing issue of currency notes was

d_tfficult during the first World middotwmiddotar This meaeure whleh vas then to be a

temporary one neverthelege lasted until July 1948 In other Yords between

September 1916 a~ JuT 1948 ~gyptian note is~ue was almoAt entirely covered

by British Treasury bills and securities The new measure to u~e Egyptian

- 11 -

budget a reserve fund is established to meet poedble budget deficit At

present the fund amounte to E 0 million ae a result of wartime accumula-

Uon of budget surplus The deficit 1n 1948 budget h to be coYered by

drawing IJll 12 million from the reseYe fund and by borrowing ialll 30 mUlion

to coYer additional military expenditures During the war there was no

inflttionary preuure from the budget but the present budget h highlT

inflationary bull

Before the war the growth of expenditures was due to the extension

of educ~ttion and sanitation the expansion of the adm1nhtrat1on the armed

forces and the public works developments while during the war 1t was attr1-

butable to the consequent rhe in prices the introduction of the cost of

living bonus and since l94o-4l the inclusion of the railwr budget The

postwar increase of expenditures is because of the expanded appropriations

for defense education and public works The principal expenditures for

1948-49 are 1amp SC million for defense E 18 million for transport -~ 16

million for education and E 13 million for public worka dt

Prior to 1939 receiptamp depended chiefly on customs and land tax

Since then income tax has been introduced and later during the war an

excess profi t tax was abo impot~ed In 1948-49 lnldet cuetomR iiutiea alone

aeeount for 50 per cent

The sterling debt of ~gypt was contracted in the late 19th century

The bulk of the debt was invested in 8tate railw~e irrigation works and

ports Just before September 1943 the out~tanding sterling debt totalled

ia92 million In September 1943 the ~uan Govenment announced a plan

providing for repavment and conversion of all the sterling debt As a

result the debt w~s either repaid or converted into internal loan which

amounted to 86 million Egyptian pounds The object of thia conversion pllt~

was to absorb local capital which had accumulated in the country It Ma7 be

-12-

said that the sterling debt nov no longer constitutes a problem

As of Ju~ Jl 1946 the total outstanding internal debt stood at

~ 114 million Of thie sum a threebullyear loan at 1-34 per cent of E 3

million was redeemed on December 15 1946 Among theae loans the important

onee ae (l) a o-year (1943-193) loan at )t per cent of iltE 58) million

ot which the authorized amount of issue was E 67 million (2) a cotton loan

of B )0 million at 2i per cent floated in 1946 and maturing January 1 1953

to finance cotton purchase J) Treasury bills ot ~ 11 million

During the second World War an inflationary trend was produced in

Egypt However as mentioned above there vas no inflationary presaure from

the budget The inflation was due to the shortage of imports and to tbe in-

crease in note issue aE a result of huge m111tarr expenditures of Allied

Forees stationed in ~gypt Between the end of 1939 and the end of 19Li5 thamp

total amount of note isgue increased from E 6 million to bullm 141 million and

volume of demand deposits from ~~ jS million to bullE 268 million During the

-ame period baaed on 1937 price leTel the wholesale price index rose from

100 to 323 and the cost of 11Ying index from 102 to 299 Since 1946 ~or~

anti-inflationaey factor have been developing -- such at the 1nerea9e in

imports and the decline in Allied ernenditures in FJgypt As a result the

note issue fell to ~E 137 million at the end of 1946 and to E 127 million

in July 1947 1 while the demtUld deposits declined only slightly In July

1947 the wholesale price index fell to 293 and cost of living index to 28

~ the end of 1947 the note issue rose again to ~E 138 million owing

to the 1vasonal financing of new cotton crop HwevP-r nt present it appeart

that the money supply has ceased~ In April 1948 the note issue

stood at 135 while the volume of demand deposita is eetimated to be no

higher than that of peak level in l94S bull

But the effect of the decline in money supply on pr-1cee has been very

slight Since lul7 194 prices rose again In April 1948 wholesale price

index stood at JJ which was even higher than in 1945 The cost of living

index also rose to 288 in April 1948

These price increases are attributable to several reasons (l) otal

money supply is still large because of insufficient 1mporta (2) Incomes

derived from exports of cotton are at a high level as a result of high world

cotton prices (J) There was an adverse effect on agricultural production

owing to the shortage ot fertili~era and unfavorable climate in 194

It is difficult to a~eertain the preci~bull relationship between wases

and prices owing to the lack of data on wages In general available data

indicate the~ wages did not incrbullase at the aame rate a1 prices as the

average daily industrial wage in January 1946 was about 205 mm compared

with 88 mm in 1938

The official selling rate for Egyptian pound is US $4127 ~er

Et~tian pound This rate was established on July 14 1947 upon the depar-

ture of ~gypt from the sterling area The black market rate for dollarbull

(currency notes and drafts) waa reportedly $300 per Egyptian pound in the 11 l

early part of 194 Heweve the black market in ~~~~~~p exohange h rather

limited in Egypt At present the degree of over-valuation of Egyptian pound

has been reduced as a result of the moderate fall of prices in Egypt and the

gradual price increases in the us As measured qy consumersbull prices

(l9J7 = 100) the oTer-valuation of the Bgyptian pound relative to the us

dollar declined from 66 per eent in July 1946 to 41 in JulT 1948 The decline

- 14-

in the oYer-valuation shove a greater extent if meaaured ~ wholesale price

index The over Taluation of the Egyptian pound at the present time has no

adTerse etfeot on Egyptian exports as demand tor Fgypt1s cotton which

accounts for the bulk of her export trade has been inereadng because of

inGuffici~nt world output nmiddot L

Since 19)9 there -no free exchange market in Egypt With the exeep-

tion of gterlin~ transaetiong in foreign currencies ha~e been forbidden

except on current acco1~t mxport of gold from the country ha$ been pro-

hibitAe_ dnee 1916 Foreign excharuee for import req_uiremente is subjeltlt to

a permit from Foreign Exchange Control Board

Before July 15 1947 Egypt vas part of the sterling area hom the

standpoint ot Egypts foreign exchange position this statue had two impor-

tant aspects FirAtly the bulk of Egypts foreign exchange tranwact1ona

was conducted in sterling Secondly Fgypt 1 s earnings of hard currencies

were converted into sterling and her needs of these currencies were met

through London From 1939 to the end of 1944 ampgypts requirement$ in herd

curreneie8 were determined throU8h agreements between the Governments of

ilgn)t and the United Zingdom and later through the Middle Erurt SUfrply Center

(t-lSO)lf Between January 1 1945 and July 15 1947 Egypts hard eurren~

requirements were financed by- direct alloeaUons from London at the rate of

approximatelv $40 million per annum

As a result of large Allied expenditures during the var Jigypt s ster-

ling balance accumulated very rapidly As a re~ult ~gypt has become a

sterling creditor country At the time of Egypts departure from ~terliag

l The MESO was an Anglo-American Organisation who8e principal function was to approve permits for imports into the Middle Eastern Countries from Allied-controlled aoureea of auwlT during the var

- 1S -

area on July 14 194 her sterling assets official and priTate totalled

some 4HJ m1llion of which it 356 million were held by banktl in Egypt

However Bgrpt baa no dgn1ficant gold or dollar reserTes Egypt has a

gold reserve of $53 million as part of note ooTer but as of June JO 1947

had only a ~mall working balance in dollars amounting o $23 million of

which $3 million were official holdings and $20 million were priTate holdings

At the end of June 194 the Anglc-Egpt1an Jinaneial Agreement was

reached covering the period of the second half of 194 It provided for the

free convertibility of lQpt1 s evrently earned sterling the release of part

of 1lgypt 1 a sterling balance the blocking of the remainder held by banks and

the departure of Egypt ftom the sterling area Under thh financial agreement

the amount of released sterling release~ totalled some 60 million of vhioh

8 million was released unconditionally ~ 12 million as a working bal~~ce

and the rest for payments by Egypt for wartime arrears of eoupons or for

aurplus stocks of the British Arrar in Sgypt etc These sterling releases

were credited to the so-called NO 1 accounts and were transferable for par-

mente for current transactions However the n IJIIBille t 1 f sterling connr-

don into dollars vas sutrpended on August 21 194 Since then 2grpt s

~terling balance in No 1 accounts has been on~ traneferable ~ithin sterling

area and sterling transferable account areall Aside from tbe~e sterling

releases the rest of sterling balance held qy banks in Egypt were blocked

in the so-called NO 2 account

lJ As of April 1948 eterll~ transferable aeeount area includes the followshyinamp countries O~echoslovakis Netherlands Jinland Iran Norwq Siam Spain Brazil Sweden Poland and USSR

- 16-

On January 5 1948 J-1grpt and the UK concluded anothel agreement

covering 1948 his agre nt provide~ an additional releaae of 11 mil-

lion as a working balance bringing the total working balance to bull23 million

and the release of 21 mllllon for current traneaotions ror herd ourrenc7

p~enta this agreement and later negotiation between Egypt and the UK

provided the following relea$eS covering 1948

(1) 625 million released by the UK as oonv~rtible into

dollars ($25 million) or covering hard currency expen-

ditures

(2) L 1 million in gold for p~ent~ of the increaeed sub-

ser1pt1on to the International Bank and of the increased

quota in the International Monetary Fund

(J) Sterling releases for paments for speo1al imports of oil

and oil equipment ~~d Chilean nitrate$ ~hese tmporte

now all from the dollar areall are estimated at $35 mil-

lion for 1948

(4) Ll million relea~ed in September 1948 as convertible into

Belgian france for the purohaee in the Belgo-Luxembourg

Union of goods essential to Egptian econorqZ

As of March Jl 1948 sterling balance held qy banks in Egypt totalled

355 million of which bull 275 million were on No 2 accounts and bullao million

on No 1 aceounts Of the balance of 80 million on No 1 aeeounts LE 2)

million represented the working balance IE 21 ere the 1948 relflalt~e and the

reat was uauaed former sterling releases and ~terling receipts from exports (Jf~ll-f Q JrftlHifiiiiA111t41 4J~~ bullbullf bel-wee EYPf ~ f4e 1lt s W pr1cbull$s tiJ fbull

lJ Chile is now considered to be in the American dollar area iJ Belgium hae stopped accepting ~terling pqments from Egypt dnoe

November 1947

stood at 135 while the volume of demand deposita is eetimated to be no

higher than that of peak level in l94S bull

But the effect of the decline in money supply on pr-1cee has been very

slight Since lul7 194 prices rose again In April 1948 wholesale price

index stood at JJ which was even higher than in 1945 The cost of living

index also rose to 288 in April 1948

These price increases are attributable to several reasons (l) otal

money supply is still large because of insufficient 1mporta (2) Incomes

derived from exports of cotton are at a high level as a result of high world

cotton prices (J) There was an adverse effect on agricultural production

owing to the shortage ot fertili~era and unfavorable climate in 194

It is difficult to a~eertain the preci~bull relationship between wases

and prices owing to the lack of data on wages In general available data

indicate the~ wages did not incrbullase at the aame rate a1 prices as the

average daily industrial wage in January 1946 was about 205 mm compared

with 88 mm in 1938

The official selling rate for Egyptian pound is US $4127 ~er

Et~tian pound This rate was established on July 14 1947 upon the depar-

ture of ~gypt from the sterling area The black market rate for dollarbull

(currency notes and drafts) waa reportedly $300 per Egyptian pound in the 11 l

early part of 194 Heweve the black market in ~~~~~~p exohange h rather

limited in Egypt At present the degree of over-valuation of Egyptian pound

has been reduced as a result of the moderate fall of prices in Egypt and the

gradual price increases in the us As measured qy consumersbull prices

(l9J7 = 100) the oTer-valuation of the Bgyptian pound relative to the us

dollar declined from 66 per eent in July 1946 to 41 in JulT 1948 The decline

- 14-

in the oYer-valuation shove a greater extent if meaaured ~ wholesale price

index The over Taluation of the Egyptian pound at the present time has no

adTerse etfeot on Egyptian exports as demand tor Fgypt1s cotton which

accounts for the bulk of her export trade has been inereadng because of

inGuffici~nt world output nmiddot L

Since 19)9 there -no free exchange market in Egypt With the exeep-

tion of gterlin~ transaetiong in foreign currencies ha~e been forbidden

except on current acco1~t mxport of gold from the country ha$ been pro-

hibitAe_ dnee 1916 Foreign excharuee for import req_uiremente is subjeltlt to

a permit from Foreign Exchange Control Board

Before July 15 1947 Egypt vas part of the sterling area hom the

standpoint ot Egypts foreign exchange position this statue had two impor-

tant aspects FirAtly the bulk of Egypts foreign exchange tranwact1ona

was conducted in sterling Secondly Fgypt 1 s earnings of hard currencies

were converted into sterling and her needs of these currencies were met

through London From 1939 to the end of 1944 ampgypts requirement$ in herd

curreneie8 were determined throU8h agreements between the Governments of

ilgn)t and the United Zingdom and later through the Middle Erurt SUfrply Center

(t-lSO)lf Between January 1 1945 and July 15 1947 Egypts hard eurren~

requirements were financed by- direct alloeaUons from London at the rate of

approximatelv $40 million per annum

As a result of large Allied expenditures during the var Jigypt s ster-

ling balance accumulated very rapidly As a re~ult ~gypt has become a

sterling creditor country At the time of Egypts departure from ~terliag

l The MESO was an Anglo-American Organisation who8e principal function was to approve permits for imports into the Middle Eastern Countries from Allied-controlled aoureea of auwlT during the var

- 1S -

area on July 14 194 her sterling assets official and priTate totalled

some 4HJ m1llion of which it 356 million were held by banktl in Egypt

However Bgrpt baa no dgn1ficant gold or dollar reserTes Egypt has a

gold reserve of $53 million as part of note ooTer but as of June JO 1947

had only a ~mall working balance in dollars amounting o $23 million of

which $3 million were official holdings and $20 million were priTate holdings

At the end of June 194 the Anglc-Egpt1an Jinaneial Agreement was

reached covering the period of the second half of 194 It provided for the

free convertibility of lQpt1 s evrently earned sterling the release of part

of 1lgypt 1 a sterling balance the blocking of the remainder held by banks and

the departure of Egypt ftom the sterling area Under thh financial agreement

the amount of released sterling release~ totalled some 60 million of vhioh

8 million was released unconditionally ~ 12 million as a working bal~~ce

and the rest for payments by Egypt for wartime arrears of eoupons or for

aurplus stocks of the British Arrar in Sgypt etc These sterling releases

were credited to the so-called NO 1 accounts and were transferable for par-

mente for current transactions However the n IJIIBille t 1 f sterling connr-

don into dollars vas sutrpended on August 21 194 Since then 2grpt s

~terling balance in No 1 accounts has been on~ traneferable ~ithin sterling

area and sterling transferable account areall Aside from tbe~e sterling

releases the rest of sterling balance held qy banks in Egypt were blocked

in the so-called NO 2 account

lJ As of April 1948 eterll~ transferable aeeount area includes the followshyinamp countries O~echoslovakis Netherlands Jinland Iran Norwq Siam Spain Brazil Sweden Poland and USSR

- 16-

On January 5 1948 J-1grpt and the UK concluded anothel agreement

covering 1948 his agre nt provide~ an additional releaae of 11 mil-

lion as a working balance bringing the total working balance to bull23 million

and the release of 21 mllllon for current traneaotions ror herd ourrenc7

p~enta this agreement and later negotiation between Egypt and the UK

provided the following relea$eS covering 1948

(1) 625 million released by the UK as oonv~rtible into

dollars ($25 million) or covering hard currency expen-

ditures

(2) L 1 million in gold for p~ent~ of the increaeed sub-

ser1pt1on to the International Bank and of the increased

quota in the International Monetary Fund

(J) Sterling releases for paments for speo1al imports of oil

and oil equipment ~~d Chilean nitrate$ ~hese tmporte

now all from the dollar areall are estimated at $35 mil-

lion for 1948

(4) Ll million relea~ed in September 1948 as convertible into

Belgian france for the purohaee in the Belgo-Luxembourg

Union of goods essential to Egptian econorqZ

As of March Jl 1948 sterling balance held qy banks in Egypt totalled

355 million of which bull 275 million were on No 2 accounts and bullao million

on No 1 aceounts Of the balance of 80 million on No 1 aeeounts LE 2)

million represented the working balance IE 21 ere the 1948 relflalt~e and the

reat was uauaed former sterling releases and ~terling receipts from exports (Jf~ll-f Q JrftlHifiiiiA111t41 4J~~ bullbullf bel-wee EYPf ~ f4e 1lt s W pr1cbull$s tiJ fbull

lJ Chile is now considered to be in the American dollar area iJ Belgium hae stopped accepting ~terling pqments from Egypt dnoe

November 1947

- 14-

in the oYer-valuation shove a greater extent if meaaured ~ wholesale price

index The over Taluation of the Egyptian pound at the present time has no

adTerse etfeot on Egyptian exports as demand tor Fgypt1s cotton which

accounts for the bulk of her export trade has been inereadng because of

inGuffici~nt world output nmiddot L

Since 19)9 there -no free exchange market in Egypt With the exeep-

tion of gterlin~ transaetiong in foreign currencies ha~e been forbidden

except on current acco1~t mxport of gold from the country ha$ been pro-

hibitAe_ dnee 1916 Foreign excharuee for import req_uiremente is subjeltlt to

a permit from Foreign Exchange Control Board

Before July 15 1947 Egypt vas part of the sterling area hom the

standpoint ot Egypts foreign exchange position this statue had two impor-

tant aspects FirAtly the bulk of Egypts foreign exchange tranwact1ona

was conducted in sterling Secondly Fgypt 1 s earnings of hard currencies

were converted into sterling and her needs of these currencies were met

through London From 1939 to the end of 1944 ampgypts requirement$ in herd

curreneie8 were determined throU8h agreements between the Governments of

ilgn)t and the United Zingdom and later through the Middle Erurt SUfrply Center

(t-lSO)lf Between January 1 1945 and July 15 1947 Egypts hard eurren~

requirements were financed by- direct alloeaUons from London at the rate of

approximatelv $40 million per annum

As a result of large Allied expenditures during the var Jigypt s ster-

ling balance accumulated very rapidly As a re~ult ~gypt has become a

sterling creditor country At the time of Egypts departure from ~terliag

l The MESO was an Anglo-American Organisation who8e principal function was to approve permits for imports into the Middle Eastern Countries from Allied-controlled aoureea of auwlT during the var

- 1S -

area on July 14 194 her sterling assets official and priTate totalled

some 4HJ m1llion of which it 356 million were held by banktl in Egypt

However Bgrpt baa no dgn1ficant gold or dollar reserTes Egypt has a

gold reserve of $53 million as part of note ooTer but as of June JO 1947

had only a ~mall working balance in dollars amounting o $23 million of

which $3 million were official holdings and $20 million were priTate holdings

At the end of June 194 the Anglc-Egpt1an Jinaneial Agreement was

reached covering the period of the second half of 194 It provided for the

free convertibility of lQpt1 s evrently earned sterling the release of part

of 1lgypt 1 a sterling balance the blocking of the remainder held by banks and

the departure of Egypt ftom the sterling area Under thh financial agreement

the amount of released sterling release~ totalled some 60 million of vhioh

8 million was released unconditionally ~ 12 million as a working bal~~ce

and the rest for payments by Egypt for wartime arrears of eoupons or for

aurplus stocks of the British Arrar in Sgypt etc These sterling releases

were credited to the so-called NO 1 accounts and were transferable for par-

mente for current transactions However the n IJIIBille t 1 f sterling connr-

don into dollars vas sutrpended on August 21 194 Since then 2grpt s

~terling balance in No 1 accounts has been on~ traneferable ~ithin sterling

area and sterling transferable account areall Aside from tbe~e sterling

releases the rest of sterling balance held qy banks in Egypt were blocked

in the so-called NO 2 account

lJ As of April 1948 eterll~ transferable aeeount area includes the followshyinamp countries O~echoslovakis Netherlands Jinland Iran Norwq Siam Spain Brazil Sweden Poland and USSR

- 16-

On January 5 1948 J-1grpt and the UK concluded anothel agreement

covering 1948 his agre nt provide~ an additional releaae of 11 mil-

lion as a working balance bringing the total working balance to bull23 million

and the release of 21 mllllon for current traneaotions ror herd ourrenc7

p~enta this agreement and later negotiation between Egypt and the UK

provided the following relea$eS covering 1948

(1) 625 million released by the UK as oonv~rtible into

dollars ($25 million) or covering hard currency expen-

ditures

(2) L 1 million in gold for p~ent~ of the increaeed sub-

ser1pt1on to the International Bank and of the increased

quota in the International Monetary Fund

(J) Sterling releases for paments for speo1al imports of oil

and oil equipment ~~d Chilean nitrate$ ~hese tmporte

now all from the dollar areall are estimated at $35 mil-

lion for 1948

(4) Ll million relea~ed in September 1948 as convertible into

Belgian france for the purohaee in the Belgo-Luxembourg

Union of goods essential to Egptian econorqZ

As of March Jl 1948 sterling balance held qy banks in Egypt totalled

355 million of which bull 275 million were on No 2 accounts and bullao million

on No 1 aceounts Of the balance of 80 million on No 1 aeeounts LE 2)

million represented the working balance IE 21 ere the 1948 relflalt~e and the

reat was uauaed former sterling releases and ~terling receipts from exports (Jf~ll-f Q JrftlHifiiiiA111t41 4J~~ bullbullf bel-wee EYPf ~ f4e 1lt s W pr1cbull$s tiJ fbull

lJ Chile is now considered to be in the American dollar area iJ Belgium hae stopped accepting ~terling pqments from Egypt dnoe

November 1947

- 1S -

area on July 14 194 her sterling assets official and priTate totalled

some 4HJ m1llion of which it 356 million were held by banktl in Egypt

However Bgrpt baa no dgn1ficant gold or dollar reserTes Egypt has a

gold reserve of $53 million as part of note ooTer but as of June JO 1947

had only a ~mall working balance in dollars amounting o $23 million of

which $3 million were official holdings and $20 million were priTate holdings

At the end of June 194 the Anglc-Egpt1an Jinaneial Agreement was

reached covering the period of the second half of 194 It provided for the

free convertibility of lQpt1 s evrently earned sterling the release of part

of 1lgypt 1 a sterling balance the blocking of the remainder held by banks and

the departure of Egypt ftom the sterling area Under thh financial agreement

the amount of released sterling release~ totalled some 60 million of vhioh

8 million was released unconditionally ~ 12 million as a working bal~~ce

and the rest for payments by Egypt for wartime arrears of eoupons or for

aurplus stocks of the British Arrar in Sgypt etc These sterling releases

were credited to the so-called NO 1 accounts and were transferable for par-

mente for current transactions However the n IJIIBille t 1 f sterling connr-

don into dollars vas sutrpended on August 21 194 Since then 2grpt s

~terling balance in No 1 accounts has been on~ traneferable ~ithin sterling

area and sterling transferable account areall Aside from tbe~e sterling

releases the rest of sterling balance held qy banks in Egypt were blocked

in the so-called NO 2 account

lJ As of April 1948 eterll~ transferable aeeount area includes the followshyinamp countries O~echoslovakis Netherlands Jinland Iran Norwq Siam Spain Brazil Sweden Poland and USSR

- 16-

On January 5 1948 J-1grpt and the UK concluded anothel agreement

covering 1948 his agre nt provide~ an additional releaae of 11 mil-

lion as a working balance bringing the total working balance to bull23 million

and the release of 21 mllllon for current traneaotions ror herd ourrenc7

p~enta this agreement and later negotiation between Egypt and the UK

provided the following relea$eS covering 1948

(1) 625 million released by the UK as oonv~rtible into

dollars ($25 million) or covering hard currency expen-

ditures

(2) L 1 million in gold for p~ent~ of the increaeed sub-

ser1pt1on to the International Bank and of the increased

quota in the International Monetary Fund

(J) Sterling releases for paments for speo1al imports of oil

and oil equipment ~~d Chilean nitrate$ ~hese tmporte

now all from the dollar areall are estimated at $35 mil-

lion for 1948

(4) Ll million relea~ed in September 1948 as convertible into

Belgian france for the purohaee in the Belgo-Luxembourg

Union of goods essential to Egptian econorqZ

As of March Jl 1948 sterling balance held qy banks in Egypt totalled

355 million of which bull 275 million were on No 2 accounts and bullao million

on No 1 aceounts Of the balance of 80 million on No 1 aeeounts LE 2)

million represented the working balance IE 21 ere the 1948 relflalt~e and the

reat was uauaed former sterling releases and ~terling receipts from exports (Jf~ll-f Q JrftlHifiiiiA111t41 4J~~ bullbullf bel-wee EYPf ~ f4e 1lt s W pr1cbull$s tiJ fbull

lJ Chile is now considered to be in the American dollar area iJ Belgium hae stopped accepting ~terling pqments from Egypt dnoe

November 1947

- 16-

On January 5 1948 J-1grpt and the UK concluded anothel agreement

covering 1948 his agre nt provide~ an additional releaae of 11 mil-

lion as a working balance bringing the total working balance to bull23 million

and the release of 21 mllllon for current traneaotions ror herd ourrenc7

p~enta this agreement and later negotiation between Egypt and the UK

provided the following relea$eS covering 1948

(1) 625 million released by the UK as oonv~rtible into

dollars ($25 million) or covering hard currency expen-

ditures

(2) L 1 million in gold for p~ent~ of the increaeed sub-

ser1pt1on to the International Bank and of the increased

quota in the International Monetary Fund

(J) Sterling releases for paments for speo1al imports of oil

and oil equipment ~~d Chilean nitrate$ ~hese tmporte

now all from the dollar areall are estimated at $35 mil-

lion for 1948

(4) Ll million relea~ed in September 1948 as convertible into

Belgian france for the purohaee in the Belgo-Luxembourg

Union of goods essential to Egptian econorqZ

As of March Jl 1948 sterling balance held qy banks in Egypt totalled

355 million of which bull 275 million were on No 2 accounts and bullao million

on No 1 aceounts Of the balance of 80 million on No 1 aeeounts LE 2)

million represented the working balance IE 21 ere the 1948 relflalt~e and the

reat was uauaed former sterling releases and ~terling receipts from exports (Jf~ll-f Q JrftlHifiiiiA111t41 4J~~ bullbullf bel-wee EYPf ~ f4e 1lt s W pr1cbull$s tiJ fbull

lJ Chile is now considered to be in the American dollar area iJ Belgium hae stopped accepting ~terling pqments from Egypt dnoe

November 1947

- 17 -

The ftlue of ~te exports increased from M aTerage of P 352 million

during 19)5-19)9 to -E 908 million in 1947 and that of importa from an aTerage

of idil J4S million to iE 10) 9 llillion during the same period t~der ruiew Thb

inereaae in Talue was chiefly due to rise of prices repreaenUng no expansion

of volume of trade In 1947 cotton export which represents 75 per cent of

Egypts total exporte amounted to S million kantars against 79 million kanshy

tars in 198 Although no data on the total import volume 1s available the

present volume h estimated to be no higher than the prewar leTel because of

considerable increase in export prices in supplying countries

In the midmiddotl9)0 1s Egypts balance of trade was generally faTorable

Since 1937 it has not been favorable except for 19)9 During the latter part

of the recent war the trade deticits ran into large amounts ranging between

~ lJ and bullE 36 million In 194 the trade deficit amounted to ~ lJl

million which was lover by lE 12 million(over 1946

According to currency areas ~t a trade for 194 uhowa a deficit of

~ 92 million with hard currency area against a deficit of ~ 54 million only

in 1946 and a deficit of ~ 24 million with the sterling area against a

deficit of~ 4 million in 1946 The deficit with hard currency ares increased

coneiderablyen in 194 becauae the imports increased while the exports remained

unchanged owing to the U s cotton quota which limited the exports of cotton

to that country and to the shortage of other commoditiee exportable to the

area

At present the u s annual import quota on long-staple cotton amounts to 45 million pounds (or 91000 bales) of which Egypts aha~e represents 95 per cent

- 18 -

The principal exports are cotton and its by-producta which together

normally represent 75 85 per cent of the total exports Other agricultural

products rrt10h as onions rice etc make up moat of the remainder ~e prin-

cipal imports are fertilizers timber coal petroleum products cotton piece

goods and wool fabrics

Before the war the ux was Jtgypt s prDoipal eustomer Following 1n

importance were Germampn7 France Italy and Japan fogether these five countries

accounted for two-thirds of Egypts total exports Thas in 19) the u K

represented 31 per cent of the total Egyptian exports France 11 per cent

Germany 8 per cent Italy and Japan each 6 per cent In postwar years the

pattern of geographical distribution was changed During 1947 India developed

remarmiddotkably as the chief customer for Egypt repre11enting 16 per cent of total

exports while the U K took only 14 per cent In the same year )ranee and

Italy inoreaaed their shares to 12 and 14 per cent respectively while the tltllt(

shar~S of Germany was negligible There wae no trade relations with Japan during

1946-47 Egypts exports to the U s rose from 2 per cent of the total 1n

l9J8 to 6 per cent ln 1947 At present the Egyptian exports to the u s

cannot be substantially increased becauae of the U S import quota on Egyptian

cotton In 1946 and 1947 the value of exports to the U S was LE 56 million

and LE 58 million respectively

1~e u K has been the leading supplier tor Egypt In 1937 22 per cent

of Egypt 1 e imports came from the U xt ll per cent from GeJman7 9 per cent

from Italy and 6 per cent fro~ the u S In postwar years the U K remained

FQ-pt 1 s principal supplier But between 1946 and 1947 imports from the U K

declined from ~ 25 million to ~ 23 million and her share fell from JO per

oa1 t to 22 ver cent Despite Egypts difficult position of hard currency the

- 19-

U S became an important ~pplier 1n postwar years Between 1937 and 1947

imports from the U s increased from~ 2J million to ~E 117 million and its

share from 6 per cent to 11 per cent of the total imports Italy and JTance

were the other important suppliers fheir shues showed both an absolute and a

relative increase There were no imports from Germany Japan and Rumania during

1946-1947

Since Y~reh 18 1948 because of larger amounts of sterling releases

made aTailable to Egypt at the bagtnntng of the year all restrictions were

removed on imports from the eterl1ng amprea and ~e sterling transferable account

area Thie action was intended to permit the imports of less essential goods

At prseant the ~ort-l1cens1ng system is applicable only to hard currency area

which includes the U s Canada Belgium Portugal and Switzerland

For axporta a permit is required with the exception of cotton ~d a few

articles such a a cigarettes nu and salt Payment in sterling ie not

accepted unless the country concerned also accepta sterli~~ in paJment for

Egrpts imports from that oountry

~alance of Palenta ~~-

In the light of theae above-mentioned financial BlaquoJeemente concluded

between Egypt and the u K p app~a tbet in ppatwar yearJI th~~OO)fertible _1~ o~ pol ~ 1-K

and inconvertible sterling releaseeC~trava1IableTto EgyPthave beenAampdeq~te r-7~

to keep her balance of J)a1ments in equilibrium HoweTer it should oe added

that this equilibrium 1s attained at the cost of severe reduction or imports

which Egypt needs

According to an estimate of the total balance of payJDents in 1946 preshy

pared by the International Monetary lund on the basis of Egyptian official

-20-

data the net deficit on the current account was jE 86 million the trade

deficit was ~E 109 m1111on11) Thie def1o1t vas met by a net payment ef i 92

~out of the capitalscount leaYing a tarpllll of lOX 06 million beoauae middot

Af errer of caleulaUaa lhe trade detlci t from hfud gurr1ncy area was estima~~d- ~~ p_ ~ ~~ ~ N

at lE S4 million Under ~~ of direct i_locat~~t had no

difficulty to meet the bard currency deficit

EstlmateJo~alanae on invisible accoun~tor 1947 ~not available

~~ Atrade deficit for 1947 amounted to ~ lJ million of which LE 9 million vas

estimated to be from bard currency area ~ 24 million from sterling area

and lil 16 m11Hon from other currency areas lhe deficit of soft currencr

area for 1947 was lmsily met out of sterling releases The hard currency def1-

cit could be financed byt 1) $6 million released by the U I for the second

half of 1947 2) the pre-July hard currency nllocation amounting to ~~ 1 million

a month which totalled some ~ 6 million for the firet half of 1947 and J)

some invisible herd currency receipts amount1nr to itE 1-2 million Thue for

194 tt appears that convertible sterling relenaes and invisible hard currenay

receipts 1were just about adequate to cover Egypts hnrd currency trade deficit

Egypts dollar problem has its origin in the in~bility of her normal

auppUers to supply the gooda she neede hi a hae made 1 t neceesary for EgJpt

to alter her normal trade patern and to turn to the U S for supplying her a

good part of imports (imports from the U s increased from ~ 2) million or

6 per cent of the total in 1937 to E 11 million or 11 per cent) On the

other hand Egypts exports to dollar area cannot be increased to any maJor

extent because of the U s import quota on FQpUan cotton and becauee of the

shortage of other commodities exportable to that area ~s 1t gtvee rise

The trade def it of ~l 109 million or 1946 is lower ~ the figure of iE l4J millio~~~~~1oned above becaus of exclusion of tMde with the middot and other trade ~~bullmiddot - I

- 21 -

to the so-called bulldollar ahortagen

Moreover Egypts dollar balance is very small Ae of June 30 1947

just before her departure from sterling area mgyptbulls dollar holdings official

and private amounted to $2 million Of lhia sum about $21 million were ear-

marked for confirmed credits in the U S leaving only $2 million freely avail-

able to Egypt i~ollowing the Anglo-EQptian Agreement of July 15 1947 the

suspension of sterling convertibility was 819de by the U K on August 21 194

Between July 15 and August 20 1947 Egypt did not build up her dollar balance

by converting into dollars the sterling releases when they were convertible

As a result Egypt was in a difficult yosition with regard to dollar exchenge

Under these circumstances $6 million were allocated to Egypt ~B a tide-over

from the U X for the second half ot 1947 The inadequacies of the dollar

resources to meet immediate requirementbull resulted in an almost complete sus-

pension of foreign exchange transactions other than sterling This i~~tton

remained throughout the second half of 1947

The dtuation of dollar supply in 1948 h more taYorable than the preshy

vious year Firstly $25 million were releatJed to igpt under the Financial

Agreement of January 5 1948 Secondly Egypt succeeded in negotiating with

the U K and the Suez Oanll Company to collect SUez Cnnal dues in dollars

after July 1947 The dues received by Egypt in 1948 will amount to $12 million

of which $8 million are duee for 1948 and $4 million are dues for the second

half of 1947 which vere withheld during negotiations and now become due to

Egypt Thirdly other invisible dollar receipts including tourist and di~lo-

matie expenditures are estimated ~7t $5-6 million Fourthly estimated value

of cotton exports for 1948 ~ounts to $23 million Thus the total dollar

cupp~ for 1948 will amount to around $65 million Thie is in addition to the

Up to July 1947 shipe from the us and other hard currenc1 countries ualng the Suez Canal paid lurd currencies to the Bank of England from whioh the7 obtained sterling to pay Canal dues

- 18 -

The principal exports are cotton and its by-producta which together

normally represent 75 85 per cent of the total exports Other agricultural

products rrt10h as onions rice etc make up moat of the remainder ~e prin-

cipal imports are fertilizers timber coal petroleum products cotton piece

goods and wool fabrics

Before the war the ux was Jtgypt s prDoipal eustomer Following 1n

importance were Germampn7 France Italy and Japan fogether these five countries

accounted for two-thirds of Egypts total exports Thas in 19) the u K

represented 31 per cent of the total Egyptian exports France 11 per cent

Germany 8 per cent Italy and Japan each 6 per cent In postwar years the

pattern of geographical distribution was changed During 1947 India developed

remarmiddotkably as the chief customer for Egypt repre11enting 16 per cent of total

exports while the U K took only 14 per cent In the same year )ranee and

Italy inoreaaed their shares to 12 and 14 per cent respectively while the tltllt(

shar~S of Germany was negligible There wae no trade relations with Japan during

1946-47 Egypts exports to the U s rose from 2 per cent of the total 1n

l9J8 to 6 per cent ln 1947 At present the Egyptian exports to the u s

cannot be substantially increased becauae of the U S import quota on Egyptian

cotton In 1946 and 1947 the value of exports to the U S was LE 56 million

and LE 58 million respectively

1~e u K has been the leading supplier tor Egypt In 1937 22 per cent

of Egypt 1 e imports came from the U xt ll per cent from GeJman7 9 per cent

from Italy and 6 per cent fro~ the u S In postwar years the U K remained

FQ-pt 1 s principal supplier But between 1946 and 1947 imports from the U K

declined from ~ 25 million to ~ 23 million and her share fell from JO per

oa1 t to 22 ver cent Despite Egypts difficult position of hard currency the

- 19-

U S became an important ~pplier 1n postwar years Between 1937 and 1947

imports from the U s increased from~ 2J million to ~E 117 million and its

share from 6 per cent to 11 per cent of the total imports Italy and JTance

were the other important suppliers fheir shues showed both an absolute and a

relative increase There were no imports from Germany Japan and Rumania during

1946-1947

Since Y~reh 18 1948 because of larger amounts of sterling releases

made aTailable to Egypt at the bagtnntng of the year all restrictions were

removed on imports from the eterl1ng amprea and ~e sterling transferable account

area Thie action was intended to permit the imports of less essential goods

At prseant the ~ort-l1cens1ng system is applicable only to hard currency area

which includes the U s Canada Belgium Portugal and Switzerland

For axporta a permit is required with the exception of cotton ~d a few

articles such a a cigarettes nu and salt Payment in sterling ie not

accepted unless the country concerned also accepta sterli~~ in paJment for

Egrpts imports from that oountry

~alance of Palenta ~~-

In the light of theae above-mentioned financial BlaquoJeemente concluded

between Egypt and the u K p app~a tbet in ppatwar yearJI th~~OO)fertible _1~ o~ pol ~ 1-K

and inconvertible sterling releaseeC~trava1IableTto EgyPthave beenAampdeq~te r-7~

to keep her balance of J)a1ments in equilibrium HoweTer it should oe added

that this equilibrium 1s attained at the cost of severe reduction or imports

which Egypt needs

According to an estimate of the total balance of payJDents in 1946 preshy

pared by the International Monetary lund on the basis of Egyptian official

-20-

data the net deficit on the current account was jE 86 million the trade

deficit was ~E 109 m1111on11) Thie def1o1t vas met by a net payment ef i 92

~out of the capitalscount leaYing a tarpllll of lOX 06 million beoauae middot

Af errer of caleulaUaa lhe trade detlci t from hfud gurr1ncy area was estima~~d- ~~ p_ ~ ~~ ~ N

at lE S4 million Under ~~ of direct i_locat~~t had no

difficulty to meet the bard currency deficit

EstlmateJo~alanae on invisible accoun~tor 1947 ~not available

~~ Atrade deficit for 1947 amounted to ~ lJ million of which LE 9 million vas

estimated to be from bard currency area ~ 24 million from sterling area

and lil 16 m11Hon from other currency areas lhe deficit of soft currencr

area for 1947 was lmsily met out of sterling releases The hard currency def1-

cit could be financed byt 1) $6 million released by the U I for the second

half of 1947 2) the pre-July hard currency nllocation amounting to ~~ 1 million

a month which totalled some ~ 6 million for the firet half of 1947 and J)

some invisible herd currency receipts amount1nr to itE 1-2 million Thue for

194 tt appears that convertible sterling relenaes and invisible hard currenay

receipts 1were just about adequate to cover Egypts hnrd currency trade deficit

Egypts dollar problem has its origin in the in~bility of her normal

auppUers to supply the gooda she neede hi a hae made 1 t neceesary for EgJpt

to alter her normal trade patern and to turn to the U S for supplying her a

good part of imports (imports from the U s increased from ~ 2) million or

6 per cent of the total in 1937 to E 11 million or 11 per cent) On the

other hand Egypts exports to dollar area cannot be increased to any maJor

extent because of the U s import quota on FQpUan cotton and becauee of the

shortage of other commodities exportable to that area ~s 1t gtvee rise

The trade def it of ~l 109 million or 1946 is lower ~ the figure of iE l4J millio~~~~~1oned above becaus of exclusion of tMde with the middot and other trade ~~bullmiddot - I

- 21 -

to the so-called bulldollar ahortagen

Moreover Egypts dollar balance is very small Ae of June 30 1947

just before her departure from sterling area mgyptbulls dollar holdings official

and private amounted to $2 million Of lhia sum about $21 million were ear-

marked for confirmed credits in the U S leaving only $2 million freely avail-

able to Egypt i~ollowing the Anglo-EQptian Agreement of July 15 1947 the

suspension of sterling convertibility was 819de by the U K on August 21 194

Between July 15 and August 20 1947 Egypt did not build up her dollar balance

by converting into dollars the sterling releases when they were convertible

As a result Egypt was in a difficult yosition with regard to dollar exchenge

Under these circumstances $6 million were allocated to Egypt ~B a tide-over

from the U X for the second half ot 1947 The inadequacies of the dollar

resources to meet immediate requirementbull resulted in an almost complete sus-

pension of foreign exchange transactions other than sterling This i~~tton

remained throughout the second half of 1947

The dtuation of dollar supply in 1948 h more taYorable than the preshy

vious year Firstly $25 million were releatJed to igpt under the Financial

Agreement of January 5 1948 Secondly Egypt succeeded in negotiating with

the U K and the Suez Oanll Company to collect SUez Cnnal dues in dollars

after July 1947 The dues received by Egypt in 1948 will amount to $12 million

of which $8 million are duee for 1948 and $4 million are dues for the second

half of 1947 which vere withheld during negotiations and now become due to

Egypt Thirdly other invisible dollar receipts including tourist and di~lo-

matie expenditures are estimated ~7t $5-6 million Fourthly estimated value

of cotton exports for 1948 ~ounts to $23 million Thus the total dollar

cupp~ for 1948 will amount to around $65 million Thie is in addition to the

Up to July 1947 shipe from the us and other hard currenc1 countries ualng the Suez Canal paid lurd currencies to the Bank of England from whioh the7 obtained sterling to pay Canal dues

- 19-

U S became an important ~pplier 1n postwar years Between 1937 and 1947

imports from the U s increased from~ 2J million to ~E 117 million and its

share from 6 per cent to 11 per cent of the total imports Italy and JTance

were the other important suppliers fheir shues showed both an absolute and a

relative increase There were no imports from Germany Japan and Rumania during

1946-1947

Since Y~reh 18 1948 because of larger amounts of sterling releases

made aTailable to Egypt at the bagtnntng of the year all restrictions were

removed on imports from the eterl1ng amprea and ~e sterling transferable account

area Thie action was intended to permit the imports of less essential goods

At prseant the ~ort-l1cens1ng system is applicable only to hard currency area

which includes the U s Canada Belgium Portugal and Switzerland

For axporta a permit is required with the exception of cotton ~d a few

articles such a a cigarettes nu and salt Payment in sterling ie not

accepted unless the country concerned also accepta sterli~~ in paJment for

Egrpts imports from that oountry

~alance of Palenta ~~-

In the light of theae above-mentioned financial BlaquoJeemente concluded

between Egypt and the u K p app~a tbet in ppatwar yearJI th~~OO)fertible _1~ o~ pol ~ 1-K

and inconvertible sterling releaseeC~trava1IableTto EgyPthave beenAampdeq~te r-7~

to keep her balance of J)a1ments in equilibrium HoweTer it should oe added

that this equilibrium 1s attained at the cost of severe reduction or imports

which Egypt needs

According to an estimate of the total balance of payJDents in 1946 preshy

pared by the International Monetary lund on the basis of Egyptian official

-20-

data the net deficit on the current account was jE 86 million the trade

deficit was ~E 109 m1111on11) Thie def1o1t vas met by a net payment ef i 92

~out of the capitalscount leaYing a tarpllll of lOX 06 million beoauae middot

Af errer of caleulaUaa lhe trade detlci t from hfud gurr1ncy area was estima~~d- ~~ p_ ~ ~~ ~ N

at lE S4 million Under ~~ of direct i_locat~~t had no

difficulty to meet the bard currency deficit

EstlmateJo~alanae on invisible accoun~tor 1947 ~not available

~~ Atrade deficit for 1947 amounted to ~ lJ million of which LE 9 million vas

estimated to be from bard currency area ~ 24 million from sterling area

and lil 16 m11Hon from other currency areas lhe deficit of soft currencr

area for 1947 was lmsily met out of sterling releases The hard currency def1-

cit could be financed byt 1) $6 million released by the U I for the second

half of 1947 2) the pre-July hard currency nllocation amounting to ~~ 1 million

a month which totalled some ~ 6 million for the firet half of 1947 and J)

some invisible herd currency receipts amount1nr to itE 1-2 million Thue for

194 tt appears that convertible sterling relenaes and invisible hard currenay

receipts 1were just about adequate to cover Egypts hnrd currency trade deficit

Egypts dollar problem has its origin in the in~bility of her normal

auppUers to supply the gooda she neede hi a hae made 1 t neceesary for EgJpt

to alter her normal trade patern and to turn to the U S for supplying her a

good part of imports (imports from the U s increased from ~ 2) million or

6 per cent of the total in 1937 to E 11 million or 11 per cent) On the

other hand Egypts exports to dollar area cannot be increased to any maJor

extent because of the U s import quota on FQpUan cotton and becauee of the

shortage of other commodities exportable to that area ~s 1t gtvee rise

The trade def it of ~l 109 million or 1946 is lower ~ the figure of iE l4J millio~~~~~1oned above becaus of exclusion of tMde with the middot and other trade ~~bullmiddot - I

- 21 -

to the so-called bulldollar ahortagen

Moreover Egypts dollar balance is very small Ae of June 30 1947

just before her departure from sterling area mgyptbulls dollar holdings official

and private amounted to $2 million Of lhia sum about $21 million were ear-

marked for confirmed credits in the U S leaving only $2 million freely avail-

able to Egypt i~ollowing the Anglo-EQptian Agreement of July 15 1947 the

suspension of sterling convertibility was 819de by the U K on August 21 194

Between July 15 and August 20 1947 Egypt did not build up her dollar balance

by converting into dollars the sterling releases when they were convertible

As a result Egypt was in a difficult yosition with regard to dollar exchenge

Under these circumstances $6 million were allocated to Egypt ~B a tide-over

from the U X for the second half ot 1947 The inadequacies of the dollar

resources to meet immediate requirementbull resulted in an almost complete sus-

pension of foreign exchange transactions other than sterling This i~~tton

remained throughout the second half of 1947

The dtuation of dollar supply in 1948 h more taYorable than the preshy

vious year Firstly $25 million were releatJed to igpt under the Financial

Agreement of January 5 1948 Secondly Egypt succeeded in negotiating with

the U K and the Suez Oanll Company to collect SUez Cnnal dues in dollars

after July 1947 The dues received by Egypt in 1948 will amount to $12 million

of which $8 million are duee for 1948 and $4 million are dues for the second

half of 1947 which vere withheld during negotiations and now become due to

Egypt Thirdly other invisible dollar receipts including tourist and di~lo-

matie expenditures are estimated ~7t $5-6 million Fourthly estimated value

of cotton exports for 1948 ~ounts to $23 million Thus the total dollar

cupp~ for 1948 will amount to around $65 million Thie is in addition to the

Up to July 1947 shipe from the us and other hard currenc1 countries ualng the Suez Canal paid lurd currencies to the Bank of England from whioh the7 obtained sterling to pay Canal dues

-20-

data the net deficit on the current account was jE 86 million the trade

deficit was ~E 109 m1111on11) Thie def1o1t vas met by a net payment ef i 92

~out of the capitalscount leaYing a tarpllll of lOX 06 million beoauae middot

Af errer of caleulaUaa lhe trade detlci t from hfud gurr1ncy area was estima~~d- ~~ p_ ~ ~~ ~ N

at lE S4 million Under ~~ of direct i_locat~~t had no

difficulty to meet the bard currency deficit

EstlmateJo~alanae on invisible accoun~tor 1947 ~not available

~~ Atrade deficit for 1947 amounted to ~ lJ million of which LE 9 million vas

estimated to be from bard currency area ~ 24 million from sterling area

and lil 16 m11Hon from other currency areas lhe deficit of soft currencr

area for 1947 was lmsily met out of sterling releases The hard currency def1-

cit could be financed byt 1) $6 million released by the U I for the second

half of 1947 2) the pre-July hard currency nllocation amounting to ~~ 1 million

a month which totalled some ~ 6 million for the firet half of 1947 and J)

some invisible herd currency receipts amount1nr to itE 1-2 million Thue for

194 tt appears that convertible sterling relenaes and invisible hard currenay

receipts 1were just about adequate to cover Egypts hnrd currency trade deficit

Egypts dollar problem has its origin in the in~bility of her normal

auppUers to supply the gooda she neede hi a hae made 1 t neceesary for EgJpt

to alter her normal trade patern and to turn to the U S for supplying her a

good part of imports (imports from the U s increased from ~ 2) million or

6 per cent of the total in 1937 to E 11 million or 11 per cent) On the

other hand Egypts exports to dollar area cannot be increased to any maJor

extent because of the U s import quota on FQpUan cotton and becauee of the

shortage of other commodities exportable to that area ~s 1t gtvee rise

The trade def it of ~l 109 million or 1946 is lower ~ the figure of iE l4J millio~~~~~1oned above becaus of exclusion of tMde with the middot and other trade ~~bullmiddot - I

- 21 -

to the so-called bulldollar ahortagen

Moreover Egypts dollar balance is very small Ae of June 30 1947

just before her departure from sterling area mgyptbulls dollar holdings official

and private amounted to $2 million Of lhia sum about $21 million were ear-

marked for confirmed credits in the U S leaving only $2 million freely avail-

able to Egypt i~ollowing the Anglo-EQptian Agreement of July 15 1947 the

suspension of sterling convertibility was 819de by the U K on August 21 194

Between July 15 and August 20 1947 Egypt did not build up her dollar balance

by converting into dollars the sterling releases when they were convertible

As a result Egypt was in a difficult yosition with regard to dollar exchenge

Under these circumstances $6 million were allocated to Egypt ~B a tide-over

from the U X for the second half ot 1947 The inadequacies of the dollar

resources to meet immediate requirementbull resulted in an almost complete sus-

pension of foreign exchange transactions other than sterling This i~~tton

remained throughout the second half of 1947

The dtuation of dollar supply in 1948 h more taYorable than the preshy

vious year Firstly $25 million were releatJed to igpt under the Financial

Agreement of January 5 1948 Secondly Egypt succeeded in negotiating with

the U K and the Suez Oanll Company to collect SUez Cnnal dues in dollars

after July 1947 The dues received by Egypt in 1948 will amount to $12 million

of which $8 million are duee for 1948 and $4 million are dues for the second

half of 1947 which vere withheld during negotiations and now become due to

Egypt Thirdly other invisible dollar receipts including tourist and di~lo-

matie expenditures are estimated ~7t $5-6 million Fourthly estimated value

of cotton exports for 1948 ~ounts to $23 million Thus the total dollar

cupp~ for 1948 will amount to around $65 million Thie is in addition to the

Up to July 1947 shipe from the us and other hard currenc1 countries ualng the Suez Canal paid lurd currencies to the Bank of England from whioh the7 obtained sterling to pay Canal dues

- 21 -

to the so-called bulldollar ahortagen

Moreover Egypts dollar balance is very small Ae of June 30 1947

just before her departure from sterling area mgyptbulls dollar holdings official

and private amounted to $2 million Of lhia sum about $21 million were ear-

marked for confirmed credits in the U S leaving only $2 million freely avail-

able to Egypt i~ollowing the Anglo-EQptian Agreement of July 15 1947 the

suspension of sterling convertibility was 819de by the U K on August 21 194

Between July 15 and August 20 1947 Egypt did not build up her dollar balance

by converting into dollars the sterling releases when they were convertible

As a result Egypt was in a difficult yosition with regard to dollar exchenge

Under these circumstances $6 million were allocated to Egypt ~B a tide-over

from the U X for the second half ot 1947 The inadequacies of the dollar

resources to meet immediate requirementbull resulted in an almost complete sus-

pension of foreign exchange transactions other than sterling This i~~tton

remained throughout the second half of 1947

The dtuation of dollar supply in 1948 h more taYorable than the preshy

vious year Firstly $25 million were releatJed to igpt under the Financial

Agreement of January 5 1948 Secondly Egypt succeeded in negotiating with

the U K and the Suez Oanll Company to collect SUez Cnnal dues in dollars

after July 1947 The dues received by Egypt in 1948 will amount to $12 million

of which $8 million are duee for 1948 and $4 million are dues for the second

half of 1947 which vere withheld during negotiations and now become due to

Egypt Thirdly other invisible dollar receipts including tourist and di~lo-

matie expenditures are estimated ~7t $5-6 million Fourthly estimated value

of cotton exports for 1948 ~ounts to $23 million Thus the total dollar

cupp~ for 1948 will amount to around $65 million Thie is in addition to the

Up to July 1947 shipe from the us and other hard currenc1 countries ualng the Suez Canal paid lurd currencies to the Bank of England from whioh the7 obtained sterling to pay Canal dues

- 22 -

from dollar area the value of which is estimflted at ~J1 million (

The dollar s~ly for 1948 though more sub9tant1al than~ preTious

years isinadequate for Fgypt 1 s requirements ll1gypts imports from the dollar

area consbt mostly of grain coal menufactures and machinery It 1s difficult

to reduce these 1mporh to any nmjor extent However at present an attempt 1s

being made to barter llgfpt 1e cotton in erclwnge for essential roo(ls like grain

from countries sueh as Russia thU2 ~av1ng F~Jts dollar holdings n the

meantime the Fgyptian Government is undertaking e cnreful allocation of her

dollar resources The emphasis of imports from the doller lllrea is placed first

on coal and other necessary consumption goodu which cannot be supplied outside

that are~ e~ secondly on durable capital goods

Cone lug ion

Durlng the war bull Egypt e sterling balance aeCUfIUlated Tamply rapidly becauae

of l~rge Allied eJCpendi tures in thbull coun1r7 As a reW t ~pt has become a

sterling creditor country Dut b~ypts gold and dbllar reaerTee are small

In postwar years ~tbulls problem of dollar shortage had its origin in

the increasing imports from the dollar area owing to the inaMlUy of her oil

sterling area uuppliere to supply 1the goods she needs On the other hand

Egrptian eXports to the dollar area cannot be increased to a~ major extent

because of the U s import quota on Egyptian cotton and because of the short-

age of other commodities exportable to that area his dollar problem 1e now

affectillg Egypt e import trade program and development projects No imrndiate

relief on this problem is in sight unless the U K ngrees to make larger

conTertible sterling releases or unless the U s r~ises the import quota on

Egyptian cotton

- 23

The liQptlan econ0181 is baaed on cotton The countrys prosperity

depends to a large exient on the world cotton prices At present the price of

cotton is at a high llaquorel and the world output of cotton is below the prewar

average tbua there haa been nn increasing demand for llgypUan cotton However

thta favorable cond1 tion as regards Egypt1an cotton doee not relieve Egypts

moat critical problem - the dollar shortage as ~t1 s export of cotton to

the U s 18 limited br quota and thedemand of other countries in the dollar

area for Egyptian cotton is insignificant

Althoillth FgrpUan industry has made great prcgreas during the last thirty

rears its developmenta are however limited by several factors such as the

low purchasing power of the mass of population the unfavorable prospect of

an export market and the lack of cheap power

Although the money eupply end price index are still at a high level the

inflation appears to be arrested This h chietl7 due to the decl1ne in Allied

expenditures in Egypt and the increase in imports ae a result of improTed

supply situation abroad

In postwar years the convertible and 1neonTert1ble sterling releases

~~de available to Egypt have been adequate to keep her balance of payments 1n

equilibrium HoweYer it should be added that thh equU1br1um is attained at

the cost of severe reduction of imports which Egypt needs

Table 1

Growth of census Eoel tion -

1897 - 1947

Year Popoundeat1on Increase duri~ - deCide ( uaiilS)

]i97 9635 -19)7 11150 161

1917 12718 13

1927 14178 ll5

1937 15921 123

1947 19040 196

y Excluding nomads

Sources Egypt Statiatical Department Cairo Anmlaire statistique de Poche 1946

lampble 2

~cultural Production ~~I~ middot-

(Thousand metric tone

l9ll39 1910 ~ 1942 ~ 1944 ~ 1946 - - - -Cot ton 3831 413 m 190 161 209 235 y Cotton soeds OIJ 57 688 34 300 m 437

Wheat 1273 1361 1124 1262 1292 946 1182 1163

Maize 1582 1529 1282 1416 1~371 1559 1697 1422

Sorghum 470 454 4b9 964 m 764 m 525

Rico 669 667 52 940 685 Sl5 866 938

Bsrley 234 241 209 277 314 22 262 lS

Beans 2 311 285 277 284 322 300 m Onions 252 220 247 104 ll6 116 159 149

sucar Cane 2210 2518 2369 2504 2190 2602 264C 2530

Y 1938-1939 average

Cotton output 61 and 62 million Kantars for 1946 and 1947 respectively (One Kantar eqtugtls 9805 pounds) bull

Not avallable

SoUlCes 193-1945 Annuairc statist19ue de Poche 1946

1946-1947 us ~ Cairo Jif2rt oneeneral Conditions of gt~ m 1947 A JS MI(A

194 -~

if 1045

1402

578

1261

170

261

202

- 23

The liQptlan econ0181 is baaed on cotton The countrys prosperity

depends to a large exient on the world cotton prices At present the price of

cotton is at a high llaquorel and the world output of cotton is below the prewar

average tbua there haa been nn increasing demand for llgypUan cotton However

thta favorable cond1 tion as regards Egypt1an cotton doee not relieve Egypts

moat critical problem - the dollar shortage as ~t1 s export of cotton to

the U s 18 limited br quota and thedemand of other countries in the dollar

area for Egyptian cotton is insignificant

Althoillth FgrpUan industry has made great prcgreas during the last thirty

rears its developmenta are however limited by several factors such as the

low purchasing power of the mass of population the unfavorable prospect of

an export market and the lack of cheap power

Although the money eupply end price index are still at a high level the

inflation appears to be arrested This h chietl7 due to the decl1ne in Allied

expenditures in Egypt and the increase in imports ae a result of improTed

supply situation abroad

In postwar years the convertible and 1neonTert1ble sterling releases

~~de available to Egypt have been adequate to keep her balance of payments 1n

equilibrium HoweYer it should be added that thh equU1br1um is attained at

the cost of severe reduction of imports which Egypt needs

Table 1

Growth of census Eoel tion -

1897 - 1947

Year Popoundeat1on Increase duri~ - deCide ( uaiilS)

]i97 9635 -19)7 11150 161

1917 12718 13

1927 14178 ll5

1937 15921 123

1947 19040 196

y Excluding nomads

Sources Egypt Statiatical Department Cairo Anmlaire statistique de Poche 1946

lampble 2

~cultural Production ~~I~ middot-

(Thousand metric tone

l9ll39 1910 ~ 1942 ~ 1944 ~ 1946 - - - -Cot ton 3831 413 m 190 161 209 235 y Cotton soeds OIJ 57 688 34 300 m 437

Wheat 1273 1361 1124 1262 1292 946 1182 1163

Maize 1582 1529 1282 1416 1~371 1559 1697 1422

Sorghum 470 454 4b9 964 m 764 m 525

Rico 669 667 52 940 685 Sl5 866 938

Bsrley 234 241 209 277 314 22 262 lS

Beans 2 311 285 277 284 322 300 m Onions 252 220 247 104 ll6 116 159 149

sucar Cane 2210 2518 2369 2504 2190 2602 264C 2530

Y 1938-1939 average

Cotton output 61 and 62 million Kantars for 1946 and 1947 respectively (One Kantar eqtugtls 9805 pounds) bull

Not avallable

SoUlCes 193-1945 Annuairc statist19ue de Poche 1946

1946-1947 us ~ Cairo Jif2rt oneeneral Conditions of gt~ m 1947 A JS MI(A

194 -~

if 1045

1402

578

1261

170

261

202

Table 1

Growth of census Eoel tion -

1897 - 1947

Year Popoundeat1on Increase duri~ - deCide ( uaiilS)

]i97 9635 -19)7 11150 161

1917 12718 13

1927 14178 ll5

1937 15921 123

1947 19040 196

y Excluding nomads

Sources Egypt Statiatical Department Cairo Anmlaire statistique de Poche 1946

lampble 2

~cultural Production ~~I~ middot-

(Thousand metric tone

l9ll39 1910 ~ 1942 ~ 1944 ~ 1946 - - - -Cot ton 3831 413 m 190 161 209 235 y Cotton soeds OIJ 57 688 34 300 m 437

Wheat 1273 1361 1124 1262 1292 946 1182 1163

Maize 1582 1529 1282 1416 1~371 1559 1697 1422

Sorghum 470 454 4b9 964 m 764 m 525

Rico 669 667 52 940 685 Sl5 866 938

Bsrley 234 241 209 277 314 22 262 lS

Beans 2 311 285 277 284 322 300 m Onions 252 220 247 104 ll6 116 159 149

sucar Cane 2210 2518 2369 2504 2190 2602 264C 2530

Y 1938-1939 average

Cotton output 61 and 62 million Kantars for 1946 and 1947 respectively (One Kantar eqtugtls 9805 pounds) bull

Not avallable

SoUlCes 193-1945 Annuairc statist19ue de Poche 1946

1946-1947 us ~ Cairo Jif2rt oneeneral Conditions of gt~ m 1947 A JS MI(A

194 -~

if 1045

1402

578

1261

170

261

202

lampble 2

~cultural Production ~~I~ middot-

(Thousand metric tone

l9ll39 1910 ~ 1942 ~ 1944 ~ 1946 - - - -Cot ton 3831 413 m 190 161 209 235 y Cotton soeds OIJ 57 688 34 300 m 437

Wheat 1273 1361 1124 1262 1292 946 1182 1163

Maize 1582 1529 1282 1416 1~371 1559 1697 1422

Sorghum 470 454 4b9 964 m 764 m 525

Rico 669 667 52 940 685 Sl5 866 938

Bsrley 234 241 209 277 314 22 262 lS

Beans 2 311 285 277 284 322 300 m Onions 252 220 247 104 ll6 116 159 149

sucar Cane 2210 2518 2369 2504 2190 2602 264C 2530

Y 1938-1939 average

Cotton output 61 and 62 million Kantars for 1946 and 1947 respectively (One Kantar eqtugtls 9805 pounds) bull

Not avallable

SoUlCes 193-1945 Annuairc statist19ue de Poche 1946

1946-1947 us ~ Cairo Jif2rt oneeneral Conditions of gt~ m 1947 A JS MI(A

194 -~

if 1045

1402

578

1261

170

261

202

Table 3

Industrial Production or Egypt

1938 - 1945

(Ihousard or metric tons)

19 1939 1940 1941 1942 1943 1944 1945 - - - - - - -Cotton lextile 217 255 251 291 329 349 348 371

Cement 375 353 365 392 422 423 419 444

Pefined Sugar 20lt-) 235 238 196 164 159 157 l4S

Cotton Seed Oil 65 53 61 73 102 9 00 74

seed Cake 261 213 245 293 lJJ9 3~ 320 29

Deer 6 8 14 25 31 34 39 38

Alcohol 49 46 50 54 61 89 85 90

Table 4

Mineral Product-ion opound ~12~ 19j-~Z7

(metric tons)

Calcium Manganese Crude f Year Phospyente Ore Chraaite aJtram Petroleum -1937 517002 1S6320 y 179 1180

1938 458404 153112 y 1373 156

1939 547538 U9bull882 2 - 2021 4146

1940 183464 64L12 31 l4 5727

1941 lll708 2175 y 4D 7137

1942 32841J el69 312 3346 7199

1943 315566 7~079 910 3059 7~910

1944 318185 30 31 31 9418

1945 349)374 47 2 3 9 369 -1946 2 y y y 8951 -1947 y y y 3_1 9283

1 In thousand barrels One metric ton of Egyptian Crude petroleum equals 7 - barrels of 42 gaUons middot

y IJo data available

JD ~ and R Dunean Ho~ on tm ~ ReSOIUCes of tne mddle East fi1arcnsect45

Annua1re Stati~tiquo 1946 bull Clement Lampvy The Stock ampxehanse Yearbook of E~ 19~

us ~J Cairo Ref on sm 1n 1947 April 30 1948

Table 4

Mineral Product-ion opound ~12~ 19j-~Z7

(metric tons)

Calcium Manganese Crude f Year Phospyente Ore Chraaite aJtram Petroleum -1937 517002 1S6320 y 179 1180

1938 458404 153112 y 1373 156

1939 547538 U9bull882 2 - 2021 4146

1940 183464 64L12 31 l4 5727

1941 lll708 2175 y 4D 7137

1942 32841J el69 312 3346 7199

1943 315566 7~079 910 3059 7~910

1944 318185 30 31 31 9418

1945 349)374 47 2 3 9 369 -1946 2 y y y 8951 -1947 y y y 3_1 9283

1 In thousand barrels One metric ton of Egyptian Crude petroleum equals 7 - barrels of 42 gaUons middot

y IJo data available

JD ~ and R Dunean Ho~ on tm ~ ReSOIUCes of tne mddle East fi1arcnsect45

Annua1re Stati~tiquo 1946 bull Clement Lampvy The Stock ampxehanse Yearbook of E~ 19~

us ~J Cairo Ref on sm 1n 1947 April 30 1948

1abla 5

Value of oreien lr~ bull 1937 - 1947

(iillions of Egyptian Pounds)

Year ~s ixPQrtsl ~ - 1937 3pound30 39) +13

1938 370 301 - 69

1939 341 34S + 0

1940 314 283 - )1

1943 3J1 226 -105

1942 5 193 -362

1943 392 266 -l26

1944 510 oo -210

1945 605 4S2 -153

1946 832 690 -142

1947 1039 908 lJl

ampr~raes 1939-45 Ann~ Statist~a de oche 1946

19371 194671 lDurOpa Publications Ltd l1le Neer East1 1948

Table 6

Textile nvterials amp textiles liaahinerr ltJli)HmiddotTatus amp Alectrieal ChemicJ pharmseeutioal produota

fertilize H1neTll Jloducta Product~ of vegetabla kin~dom Colnwon rcethls toanufaetures Food bevergeg and tobacco ood oorl= 3rtielel theeof Preeiou IEtal~

Other~

~ r-r C t ton Riee Onions Pho~ph~te~ of lime S~1 t Cot tCInaeed oil Pinercl oil~ OthArs

Ineluded in other importa Inclmiddot~ed in other exports xcluding reexport~

m-terinl~

and

SQurggi hpnijaire secttQt1st1aYamp l9J8

88 l6

51 4

I JJ 39 11tl 29 Bl 80

380

90 lJ

o s

BJ 9 bull middotf

5lJ -JB4s

146 68

90 9 85 68 91 28 42

117

8)2

436 59

6

1 ) 1 128

6) 7l

-tational Bank of Bgrpt eonomle ltuJletampn J1pril 191~8

Ol 118

111 90 8 bull 5 9 76 0 56

150

10J9

69) 61 1 bull 5

8

6 L

ll-

9 -e7os

United Kint~dom British Empire Belgium Chile Czechollovakia France Japan Gertnan3 Iran Iraq Italy Palestine Swiherland Syria Lebanon Turkey USA Otler

Totel

1937

84 ) ) ~ Lbull

22 6 6

19 15 4 1 -) 11

250 107

2gt ~1

jO 13

j

J

)2 4

jO 4 46 60 7

9 1

47 6 2J 6 91 ll

117 31 117 lJ ----------------------)80 100 832 100

I Inelud1ng ~8 million for India ] Ineluding lElt~ million for In41a sJ -~eluding reexPorts

SoureEs Annlatr~ st t~~ti11ue 19JA

Table Z

1947

jO ljO 57 45

22 13 6 4

66 6

26 3 Jj J 92 9

5 l

35 J 117 11 Oj 19

1039 100

1917

119 23

R

11 6 2

l~ 11 23 6 11 8

23 6

191-6 ~

n~ 17 15bW 5 12 2

10 2 53 8

9 9 16 15 20 J 12 2

1947

127 15 21 4J2 25 17 2

LL1 5 107 12 06 1 l 2

10 14 11 1 21 2 13 1

( 1 6 9 58 7 90 j 93 16 126 13

J84s 100--6-- 7-9_1-~-o--8-7-~-os~-1o_o_

The British Chpound7m~t gg Commerce Qf lt~t Jotrnal Cairo ~pril 1911-8

Table 8

The Budgejt of Jm~

(Millions of Egyptian Pounds)

SUrplus (i) or

ieVtnue Ex-oem~ture DeQoit _l 193839 376 404 - 28

3940 394 412 - lS 4041 437 426 11 41142 56 461 102 4243 671 566 105 4344 778 719 59 4445 877 821 56 4546 1035 953 82 4647 lv 914 1035 - 61 4748 ~ 942 1033 - 91 4849 il 1415 1834 -419

~ Not avaUable

R Estimates The 194748 budget covers 10 months only

Q Revised estimate

SoffiC lnnuakt Statietigue Se Pooh 1946

General ReurvL

il 25 29 33 39 II

48 57

~ 70

ottioial JournJ of Egxptian QgverpJt Cairo July 10 1948 La Revut d llsmt EooD91igue et rinanoien Cairo July 31 1948

Table 8

The Budgejt of Jm~

(Millions of Egyptian Pounds)

SUrplus (i) or

ieVtnue Ex-oem~ture DeQoit _l 193839 376 404 - 28

3940 394 412 - lS 4041 437 426 11 41142 56 461 102 4243 671 566 105 4344 778 719 59 4445 877 821 56 4546 1035 953 82 4647 lv 914 1035 - 61 4748 ~ 942 1033 - 91 4849 il 1415 1834 -419

~ Not avaUable

R Estimates The 194748 budget covers 10 months only

Q Revised estimate

SoffiC lnnuakt Statietigue Se Pooh 1946

General ReurvL

il 25 29 33 39 II

48 57

~ 70

ottioial JournJ of Egxptian QgverpJt Cairo July 10 1948 La Revut d llsmt EooD91igue et rinanoien Cairo July 31 1948

1939 26

1940 37

1941 51

1942 5

1943 96

1944 117

1945 141

1946 137

1947 138

l)LiS (June) lJli-

iiJ November 1947 l Ar)ril 1948 gj Hay 1948

(11llion11 of ~gyntinn Pounds)

35

49

4

10)

175

28

268

269

262 JJ

na

fholelale Price Ind ex

193 = 100

100

124

26

J2J

31

301

337 ]

co~t opound iiving Jndes

10

115

285

Sourge International Monetary lund Internationil FinsectAeial ~tati~tic~ Se~)tember 1948

Credit ~Rtlsdnhl

Current TtaQsect~qttqnsect 1 11erahandhe 2 ion-monetary gold rooYem~nt

(net) J 7oraign travel 4 bull 5 6

Trl-ulgportat ion Inve tment Income Government (not included

elsewhere) 7 Hisce llaneou1J 8 lotal cttrrent trnnssctiong

( 1 through )

l~ovement gf Cfpital amp ~ionttltamplY Gold 9 rrtnttJ excluding banking

in1~ t1 tut1ons) Lonl-erm capital

lO OftdaJ amp J3ankSJ1B lntitljOPIj

681

156 29

68

Long-Term capital f 7 Short-rerlll capi tal -172

ll ont~tary Gold f 03 12 Total ~vement of capital

~ rnone tney gold - 9 2

Debit llYllllltsectl

790

)0 48 )3 Ql

3 05

1020

- 08

f 08

Net Credit (f) 9t rmbU ( -)

-109

- )0 - t~B

fl-) -6-

f ]j-5

- os

- 86

- 06

f oa f -180 f OJ

- 9l

Credit ~Rtlsdnhl

Current TtaQsect~qttqnsect 1 11erahandhe 2 ion-monetary gold rooYem~nt

(net) J 7oraign travel 4 bull 5 6

Trl-ulgportat ion Inve tment Income Government (not included

elsewhere) 7 Hisce llaneou1J 8 lotal cttrrent trnnssctiong

( 1 through )

l~ovement gf Cfpital amp ~ionttltamplY Gold 9 rrtnttJ excluding banking

in1~ t1 tut1ons) Lonl-erm capital

lO OftdaJ amp J3ankSJ1B lntitljOPIj

681

156 29

68

Long-Term capital f 7 Short-rerlll capi tal -172

ll ont~tary Gold f 03 12 Total ~vement of capital

~ rnone tney gold - 9 2

Debit llYllllltsectl

790

)0 48 )3 Ql

3 05

1020

- 08

f 08

Net Credit (f) 9t rmbU ( -)

-109

- )0 - t~B

fl-) -6-

f ]j-5

- os

- 86

- 06

f oa f -180 f OJ

- 9l

1 The figures of merchandise tran8actions d1ff~r from that in ~able 5 owing to the excludon of export~ to and imports from the SUdan

6 eeeipts repre~ent net milihey expenditures of Allied Jorcelt1 Payments include only bud~tary expenditure Commercial tr~action~ of the Government were ~hown under Item 1

7 Film royaltieg ete

9 c~nital remittance rueh aSJ p~meub in reRptHt of drawn bonds and othar such p~ent~

10 Official long-term Ck~pital movemenh bullbullere the increase in lonp-term holdings of the National Bank of Tmt and subscription~ to U4F and rmiddotrm iJnder official lhort-term capitol movements the aMet entr-ltr corresponds to the movement in the Bank1 a holdings of sterling and the l1eb111 ty entry to the pert of the E~tian $1UbMript1ons to IhF snd IBRD which were -paid 1n local currency

ll Lhe figures represent the ehan-e in the rlOnAtlry gold holdin~~s of the LmiddotHtional 3ank of rgvpt

- 22 -

Bi BLI OGRAPHT

The following are the principal sources used in the preparation of this report

Issawi Charles Ecrut AQ Economic and Sogi~l Ani6t~i~ London 1947 Europa PublicHtion Ltd 731bull Neg Eamt amp948 London 1948 Bonne A ~he Fconomte Qvelopmen o the Middle Eas~ London 1945 American Embassy Cairo Rport qn General Con41tiqns tn Eezpt in 194Z

April JO 1948 International Monetary Fund document Suryey of the Ecqnomz of Egzp

Iiovember h 1947 Th JiAAQgiaJr Position ot kYP$ March 19 1948

~ncyclopedia BritanniA

In addition to current information obtained from newspapers periodicals official relea~es and reports of monitored broadcasts the following courses were consulted for the individual chapters of this report

Creograply Pipulfttion NutoAAJ Insome Jher Clyde V Ill DemogrtpQic PosjUon of kgrot DemograPhic Studies of

Selected ~reas of Rapid Growth NY 1944

Political Organamption Awad Mohamed lgtpt Gtcit Britai smd thft Su(an 4s Emtigp Vampew

The IUddle East Journal Washington D C July 1947

MtiQQJ tyzt ltampng the JooQ Sygplz Hazen N bull Wrrtime Asgects of Emtiamp Afrisnaltural 1iJ2onomy The US

Department of Commerce Apoundr1QUJtwe June 1941 Warriner D Land ang Poverty in the Middle Ea~t London and NY 1948

Industtz Shatwell H G The Ohemiel Industries of tmt The British Chamber of

Commerce of ~t Journal Alexandria January 1948 Ahmed lvlbel 1z iz Bey AswAA Dam Rydro-Elestric Project and Other poundiydroshy

Electrig Develogmentsect in Egypt The BritiAh Chamber of Commerce of ~grpt Journal Alexandria April 1948

The 2velopment of the Textile and Allied Indu~tries in F~t The Briti~h Chamber of Commerce of ligypt Journal June 1948

lmiddotfonetary Oircgplusmnsecttion Craig JI ObAge in Egzptian Ourrencz sectYstem The Egyptian Gazette Cairo

~ugllAt 19 1948

F~reiga ExchsectAgft Po11t2B Mikesell Raymond F sectterling AreA Currencieg o( the Middle East lhe fliddle

iast Journal Washington DO April 1948

B~arlAAoe of rwmeh In tarnational Monetary llund Em 1 Ba1anet ot P8YQUlh Prosnegt 1 ~be

Light of Ut k-lglq-Emtan lnino1Al Mttement January 1948 Febfuary 5 1948