Coll 15/4 'Internal Affairs: financial situation' [‎12v] (24/246)

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If, however, account is taken of the fact that the national defence contribution
at present in existence £s to be abolished, it will be seen that the total revenue co
be raised in 1938- 39 shows an increase of £E. 2,939,180. which will be found—
ME.
(а) ^Ry new taxes ... ...' ... .... ... 1.000,000
(б) Normal increase in the yield of existing taxes 1,209,000
(c) Increases in actual scale of certain existing
taxes ... ... ... ... ... ... 730,000
The principal individual source of increase is from customs duties, the yield of
which shows a rise of £E. 1.192,200, but the note does not state whether this
increase is anticipated as the result of a greater volume of imports, or whether
increases are*contemplated in the existing customs and excise duties on certain
classes of goods. Other notable increases which are budgeted for are the Govern
ment’s share in limited liability companies, which has risen from £E. 330,660
this year to £E. 746,500 in 1938-39, an increase mainly derived from the sugar
company, and a payment of £E. 300,000 by the Suez Canal Company instead of
£E. 200.000 as hitherto.
12. Expenditure during the coming financial year is estimated to be
£E. 40,932.000, as against £E. 36.992,820 during the present year, an increase
of £E. 3,939,180. The rest of the note is devoted to a survey of the credits
allocated to each Department, which it is not necessary to discuss in detail, but
amongst the credits authorised it is interesting to observe that the sum of
£E. 110,000 is earmarked for the Suez oil refinery in order to increase its
productive capacity, whilst the export bounty on citrus fruits is maintained with
a grant of £E. 24,000, and a sum of £E. 20,000 has been allocated to the
encouragement of tourist traffic.
13. As was to be expected from Ismail Sidky Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. , the note is an able
document, and the new estimates have been drawn up in a spirit of financial
orthodoxy and of fiscal moderation, but the strong undertone of economic
nationalism is unmistakable, and if Sidky Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. continues in office as Minister
of Finance, it is to be expected that the investment of foreign capital in Egypt
will be more strictly controlled, and. in certain directions, will be subordinated
to Egyptian interests.
14. It will be all to the good if Sidky Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. and his successors recognise in
principle that the Egyptian Civil Service should be placed on a non-political
basis, specially desirable in view of the relative incompetence and lack of business
experience of the average Egyptian Cabinet Minister. It is unfortunately
unlikely that these aspirations will do more than to counteract to some extent a
growing tendency in the reverse direction.
15. A copy of this despatch is being sent to the Department of Overseas
Trade.
I have, &c.
(For the Ambassador),
D. V. KELLY.