PZ 5636/35 'Egypt: Annual Reports 1934 -1938' [‎21r] (48/342)

Proposed formation of a Central Bunk.
at i 1^38 discussions proceeded between the Government and the
-National Bank of Egypt for reorganisation of the bank in the form of a Central
Bank A reference was made to these pourparlers in the Prime Minister’s
speech introducing the 1938-39 budget estimates, and the Speech from the Throne
mentioned the Government s intention to submit a Central Bank scheme to Parlia
ment. At the end of the year, however, the Government made proposals which
were unacceptable to the directors of the National Bank, and the Governor was
considering whether to bring matters to a head by suggesting liquidation to his
shareholders on the ground that this was in their best interests unless the Govern
ment would agree to mutually satisfactory terms.
Hydro-Electric Project at Assouan.
76. No definite progress was made in 1938 in the long-drawn-out negotia
tions between the United Kingdom group formed of the English Electric Company
(Limited), Imperial Chemical Industries (Limited) and Lazard Brothers on the
one hand, and the Egyptian Government on the other, for the construction of a
hydro-electric power station and a fertiliser factory An East India Company trading post. at Assouan. The Government
reiterated during the budget debate and in the Speech from the Throne on the
19th November their intention to proceed with the project and, in reply to an
interpellation in the Chamber of Deputies in June, the Minister of Public Works
said that the Assouan Dam scheme was foremost in the Government’s works
programme and that they were resolved to carry it out. Representatives of the
group visited Egypt in March 1938.
Egyptian Police.
77. During the year the British element in the Egyptian police force was
decreased by 10 officers and 42 constables. Of this number 4 officers and
11 constables retired voluntarily and, in accordance with His Majesty’s Govern
ment’s agreement with the Egyptian Government, their vacancies in the yearly
quota lists were filled by extending the periods of service of European officers and
constables who were due to be retired at an earlier date. His Majesty’s Govern
ment and the non-official organisations in England and in Egypt continued to give
every assistance to retiring officers and constables in their search for fresh employ
ment. As regards the British members of the Egyptian police force who retired
in 1937 and 1938, the position as at the 31st December was as follows :—
1937.
1938.
Obtained employment
Left Egypt (without cer
tainty of other employ
ment)
On pension and/or considered
unemployable
Deceased
Still in Egypt and unem
ployed ...
Officers. Constables. Officers.
6 68 8
1 2 1
3 6 1
1 5 1
Constables.
34
2
1
5
78. The above-quoted figures for 1938 include one officer and five constables
of the Palace police, who, not being members of the Egyptian City Police under
the Ministry of the Interior, were not originally included in the elimination
schemes prepared after the ratification of the Anglo-Lgyptian Treaty. These
officials, who were employed on contracts and paid from Palace funds, were given
to understand by the Palace authorities that their services were likely to be
retained for some years. Early this year, however, they were informed that their
contracts, which terminated on the 31st May, would not be renewed. I he question
of their treatment on retirement was therefore taken up by His Majesty s Embassy
with the Palace authorities, and arrangements were made for them to receive
financial treatment similiar to that accorded to their colleagues m the city police.
79 As a result of the policy (recorded in paragraph 104 of the annual report
1937) of allowing all British members of the Egyptian police force to apply
vacancies of which His Majesty’s Embassy might have knowledge, an