Ext 8835/47 'Middle East: monthly economic reports' [‎3r] (5/30)

3
Bank advances, 23rd September—
Government: 4,056 million rials.
Others : 2,063 million rials.
Price of fine gold per misghal—
30th October : 445-450 rials.
Gold sovereigns—George V : 930 rials.
Jifee exchange market—
Dollars = 71-71-25 rials per $.
Sterling = 207-207-50 per £.
II.—Iraq
1. It is generally considered, and the
Prime Minister has stated, that owing to
drought there has been a shortfall of
65,000 tons in this year’s wheat crop. This
has combined with other factors to cause
a shortage of wheat for domestic consump
tion which has given the Government some
anxiety, although substantial stocks of
wheat are known to be hoarded in some
liwas, and wheat is daily smuggled out of
the country to Transjordan Used in three contexts: the geographical region to the east of the River Jordan (literally ‘across the River Jordan’); a British protectorate (1921-46); an independent political entity (1946-49) now known as Jordan .
The Government demand half the wheat
crop at the price of ID.26 per ton, while
the open market price, which about two
months ago was about ID.40 per ton, has
now risen to between ID.80-90 per ton.
The Government’s reason for demanding
half the crop is to ensure that adequate
supplies will be available for the large
towns, particularly Bagdad and Basra.
They are also endeavouring to obtain an
allocation of 30,000 tons of wheat from
Australia, but it is not yet known whether
the authority of the International
Emergency Food Council will be necessary
or will be obtained. At the same time a
ban has been placed on all exports of barley,
of which normally some 150,000 to 200,000
tons are exported annually. As a result
of the ban on export, the price of barley
has rapidly fallen from ID.35 per ton to
ID.26 per ton.
2. In spite of many difficulties and the
present ban on hard currency imports the
value of credits opened for business abroad
during October was more than double the
highest figure this year and is the greatest
yet recorded. Most of these credits are for
cotton piece-goods and other goods which
can be imported on open general licence.
3. It is reported that applications for
import licences are going in to the Ministry
at the rate of about 1.000 per day and are
being dealt with at the rate of about twenty.
The value of imports in March was
ID.4,112,600, the highest yet recorded;
exports were valued at ID.1,909,524. The
comparative figures for February were
ID.2,234,340 and ID.775,030.
4. The Iraq Government issued a new
3 per cent, loan on 1st October. The issue
was of ID.l million in 10,000 bonds of
ID.100 each, and preference in the sale of
bonds was given to holders of the Iraq
3 per cent, loan of 1944 (which matures on
31st December, 1947), who wished to
exchange their bonds. Sales against
redemption of the 1944 loan bonds did not
amount to more than about ID.350,000.
The rate of interest offered and the lack
of provision for hard currency exchange
tended to make this loan less popular than
previous loans.
5. A general census of Iraq was made
on 19th October. The total population is
4,794,449.
6 . w.
Government revenue
for February 1947
1,247,545
Government expendit
1947
ure for February
1,720,415
Bank deposits—
Aug. 1947
ID.
Sept. 1947
ID.
Fixed deposits
2,723,941
2,843,678
Current accounts
12,449,179
13,152,717
Savings accounts
2,793,961
2,803,003
Total
17,967,081
18,799,398
Gold prices—
Sovereigns : ID.4,960-5,250
(ID.5,050 at 31st October)
5 Tola Bar: 1D.30,300-31,750
(ID.30,500 at 31st October)
III.—Turkey
(What follows refers to the months of
July and August.)
1. An international trade fair was held
in Izmir, opening on 20th August, to last
till 20th September. Bulgaria, Czecho
slovakia, Greece, Iran, Pakistan, Poland
and Yugoslavia had official pavilions.
Other countries were represented by private
stands.
2. Further particulars of the “ Ameri
can Aid to Turkey ” agreement are now
available and show that the $100 million
will be classified as military, so that the
sum will, in fact, constitute a gift, and
may, moreover, be increased by 25 per cent.
It will be allotted as follows : 50 per cent
to the army, 30 per cent, to the air force,
10 per cent, to the navy, and 10 per cent,
to miscellaneous which includes $5 million
for roads.
3. The coming tobacco harvest is expected
to exceed 90,000 tons, about the same as
last year. The Government proposes to set
up five new tobacco curing stations, to cost
£T.5 million (£443,000) each, over the next
five years. This is part of the Government’s
plan to improve the quality of Turkish
tobacco and encourage its export.
b 2
34590-13