§ Sir John Wardlaw-Milne(by Private Notice) asked the Under-Secretary of State for Foreign Affairs whether he can make a statement about the disposal of this year's Egyptian cotton crop?
§ Mr. ButlerYes, Sir. Anxiety has for some time been growing in Egypt regarding the disposal of the 1940 cotton crop, the picking of which is about to begin. Owing to the great reduction in demand due to war conditions and to difficulties of export, the danger was imminent that the bulk of the crop would be left unsold in the hands of cultivators. The Government of Egypt represented to His Majesty's Government that the financial resources at their disposal did not admit of their dealing with the problem without assistance. Such is the dependence of Egypt on the sale of her cotton, that failure to lift the crop would be an economic disaster of the first magnitude, and in particular would deprive millions of small cultivators of their means of subsistence. His Majesty's Government have accordingly decided to respond to this appeal from our Ally by setting up a Commission to purchase cotton, on which the Egyptian Government is being asked to nominate a representative. This Commission will be prepared to purchase before 30th April, 1941, all lint cotton derived from the 1940 Egyptian crop, or as much as is offered to them, and all mercantile cotton seed (as distinct from sowing seed). I am circulating the technical details of the prices agreed upon between the two Governments in the OFFICIAL REPORT. His Majesty's Government will bear the whole or any net loss which may arise from the transaction as a whole. But they will share equally with the Egyptian Government any net profits which may accrue on the understanding that such profits as may be returned to the Egyptian Government under this arrangement will be used by that Government for relief of cultivators in a manner to be agreed on between the two Governments.
§ Mr. ManderCan the right hon. Gentleman give an assurance that as an Ally the Egyptian Government are co-operating to the fullest possible extent with this country?
§ Mr. ButlerWe take that for granted.
Following are the prices agreed between the Government of Egypt and His Majesty's Government:
As a result of discussions between the two Governments it has been agreed that such purchases will be at a price of $14.25 per cantar for F.G.F. Ashmouni and $15.25 for F.G.F. Giza and cotton seed at a price of 65 piastres per ardeb franco warehouse Alexandria in each case.