Ext 8835/47 'Middle East: monthly economic reports' [‎3v] (6/30)

4. The overall cereals production should
be from 20 per cent, to 25 per cent, below
last year’s, which makes it doubtful
whether there will be any exportable sur
plus. It is expected that some 300,000 tons
of this year’s crop will be placed in the
reserve. The silk harvest, which ended in
July, was about 25 per cent, below last
year.
5. New silver Turkish lira coins, weigh
ing 71 gr. each, were put into circulation
in August. A group of business men have
decided to found a new bank, the Banque
de Credit de Turquie, with a capital of
TL. 2 million (£176,000).
6. The note circulation remained prac
tically unchanged during July and August,
compared with decreases of TL. 20-8 mil
lion in June and TL. 24-2 million in May.
The circulation is
made up as
under:—
30th August,
98th June,
1947
1947
£T.
£T.
Old issue
117,607,000
116,850,000
Supplementarv issue
(covered by gold)
369,233,000
324,230,000
Supplementary issue
(covered by bills)
454,390,000
500,540,000
941,230,000
941,620,000
Gold reserve
484,467,000
531,763,000
(£43 million)
(£47-1
million)
The gold reserve decreased by 15,011-1
kilog. in July and August, following a re
duction of 14,206-2 kilog. in June and
15,623-3 kilog. in May. These reductions
are due partly to Turkey’s contribution to
the International Monetary Fund and
partly to the conversion of gold to meet
foreign exchange, principally I nited
States dollar commitments.
Gold and foreign exchange reserves
amounted to £61 - 5 million on 30th August,
as against £64-2 million on 28th June.
During the first eight months of 1947 the
Central Bank’s gold reserves have been
reduced by close on 56,000 kilog., or
TL. 186 million. As against this, however,
holdings in foreign currency (principally
sterling) have increased by about TL. 130
million.
The published provisional returns of the
Treasury for the 1946 budget are :—
£T.million
Actual receipts ... ... ... ••• 956-7
(£T.62 million above estimates)
Deficit covered by loans ... ... 95-9
Total 1,052-6
Estimated expenditure ... ... ... 990-6
Additional credits authorised 93-3
1,083-9
Deficit ... ... ••• ••• ••• 31-3
Owing to certain Government budgetary
accounting rules, the expenditure has pro
bably not exceeded TL. 1,055-8 million.
The income from the internal loans floated
in 1946 will in all probability suffice to
cover the deficit.
The total allocation to national deface
in 1946 was TL. 369 -9 million, a^ut
39 per cent, of total budget expenditure.
7. The shortage of money continued
during July and August, due to heavy
arrivals of imports, cotton piece-goods in
particular, which had not been cleared from
customs. There were signs in August of
increased buying activity on the home
market. One thousand tons of cement were
said to have been bought in Beirut by the
Turkish Ministry of Economy. The short
age is estimated at about 100,000 tons. In
July some 4,000 cases (10 gross) of first-
quality eggs were sold, at £12 f.o.b., to
Greece and Palestine, and in August 3,500
at from £11 to £13, according to quality,
to Cechoslovakia, Palestine, Greece and
Switzerland. The Ministry of Commerce
in July authorised the export of 60,000
pairs of locally-manufactured silk stock
ings and 50,000 metres of natural silk cloth.
8. Wholesale prices of local industrial
products have remained stable, while prices
of certain imports have tended to fall, a
number of importers having had to sell
their stocks without profit owing to the
financial stringency. Export prices showed
a weaker tendency.
9. Arrangements were made to enable
Turkish business men to visit the Hanover
Trade Fair, and probably ten to twenty
persons actually went.
10. For the first six months of 1947 the
coal output from Zonguldak totalled
2,022,118 tons, compared with 1,972,654
tons for the first six months of 1946. An
annual attendance premium is to be paid
each July to encourage attendance of
miners.
11. The Director-General of the Mineral
Research Department returned from a visit
to the United States where he ordered
boring equipment. One boring machine,
costing |800,000, was to be delivered in
three months at Adana.
12. The congestion at the port of Istan
bul continued, and in early August the
Minister of Communications announced
that as there were 120,000 tons of goods in
the warehouses and no space available for
further arrivals of cargo, storage rates
would be increased to force merchants to
withdraw their merchandise. No increase
has yet been enforced.
13. On 23rd July an air convention was
signed by the Turkish and Greek Govern-