Coll 54/2 'Middle East (Official) Committee: Working Party' [‎103v] (206/642)

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in the economic field is likely to be greatest. The.fift^
country, Egypt, is important because of the far-reaching
Nile Waters T Project on which a beginning has already been
made and also because of its serious population problem.
6 . The attached-paper, together with the supporting
’’country papers”, were considered at the Conference of
His Majesty’s..Representatives in the Middle East, which was
held in London from July 2lst to July 28th.
7. The Conference of His Majesty’s Representatives
in the .Middle East laid particular stress on the-following
points:-
(a) . The v-ital importance of the Middle East to the
U.K. in peace aid war;
(b) the fact that side by side with pressure from
His Majesty’s Government for better administration
and for the spread of education to encourage
public spirit, progress in economic aid social
development must be an essential factor in
’ improving .conditions in Middle East countries
and combating the growth of communism;
(c) unless ; the U.K. is able and willing to make a
considerable contribution to a programme of
economic and social development .her position in
the Middle East, which is vital to her oh
political, strategic and economic grounds alike,
will be gravely and perhaps fatally jeopardised.
8 . • Strategically the Middle East is an area of cardinal
importance second only to the U.K. itself. It is a focal
point of communications, a source of oil, a shield to Africa
and the Indian ocean, and an irreplaceable offensive base.
9# In the-economic sphere the importance of the
Middle East to the U.K. ought not;to be underestimated.
Without the-‘Middle East our general'balance of payments
position would be insoluble.' Apart from the large profits
made on oil, the oil itself is necessary to the sterling
area and without it we would have to purchase the equivalent
elsewhere for dollars. In the supply of Middle East oil
to other countries for sterling we are earning a useful
inbome and helping to balance'our trade with those countries.
* 10.' Furthermore until substitude fibres are found,
Egyptian cotton is a vital 'commodity s for the U.K. Without
it we should have to buy additional quantities of cotton
from the Western Hemisphere for which we would have to
pay dollars. The long staple cottcfo we obtain from Egypt
is processed into high grade textiles which find a ready
market in the dollar area and to this extent cotton we
obtain from Egypt contributes to our dollar earnings . 1
• ’ . • 1 ; . . j ./ •.* ' 1' •'.V . » *
11 , Finally, the Middle East provides a large market
/ for