مجموعة ١/٥٤(س) "لجنة الشرق الأوسط (الرسمية): إعادة الإعمار" [و‎‎٤‎٨] (٩٤٠/٩٩)

-3-
The present Christ!an-Moslom population ratio (the
dominant factor in Lobanoso politics; rosultod from tho
inclusion in tho Creator Lebanon of the largely Moslem
areas of tho Boqaa, Tripoli, and Akkar. Maintenance of
this arrangomont (offoctod in 1920) is a basic factor in
the understanding botwoon tho Lobanoso and Syrian Nationalists
7 so-callod compromiso of 1943* Tho areas concornod are
hov/ovor culturally and economically backward as compared
with other areas in tho Lebanon and havo not yet boon
fully assimilated# Tho Moslem hinterland oxerts a
considerable power of attraction which would probably
be increased if Syria became part of a larger'poll tical
on ity undor Hashomito control. Hence Lebanese concern at
the possibility of greater unity in tho Fertile Crescent area.
Tho present regime is well-disposed towards His Majesty^
Government rut only as a result of the assisttanco given by
His Majesty s Government to the cause of Lebanese
independence but also because of His Majesty^ Governments
known sympathy for Arab Nationalism which is contrasted with
alleged French Colonialism. This attitude has been
consistently maintained in spite of very considerable French
economic and cultural influence# French influence derives
from the French controlled Bank of Issue, French concessionary
companies (railways, port of Beirut, etc.,) the recent Franco-
Lebanese monetary agreement, the French university and schools#
and finally from the tradition of friendship between Christian
elements in the Lebanon and Franco#
The administration is in general of a low standard#
tho Civil Service is badly paid and with few notable
exceptions is ineffective and dishonest. Political'
interference in the administration is unfortunately rampant#
4 .# General Economic Position .
During the mandatory period the Lebanon and Syria formed
an economic union. Their economies wore in general
complemontary - the Lebanon being a country of services and
Syria a producing country. When independence was in tho
process of being achieved the economic unity was virtually
broken, though by a Convention signed in October, 1943#
the Customs Union was maintained. The free circulation
ot goods between tho two countries, though provided for in
the agreement, in practice became restricted and separate
import and export policies were followed. Tho growth of
industrialisation in both countries tended to strengthen tho
separatist toniencics# At the sanfo time the Syrian
Government encouraged Syrian merchants to import the country's
requirements direct and not as in tho past through Lebanese
commercial houses# The quota system applied to tho
distribution of import business between Lebanese and Syrian
merchants and (particularly after 1946 when the purchase of
sterling was restricted) to tho allocation of hard currencies,
was based on the population ratio of tho two countries# These
arrangements improved the position of Syrian merchants who
J^e °von able to some extent to reverse tho normal roles of v
the two^ countries an i to soli imported goods in the Lebanon#
The Syrian Government also sought to increase tariffs both
as a means of limiting imports and of encouraging their
nascent industries.
This