Ext 8835/47 'Middle East: monthly economic reports' [‎4r] (7/30)

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ments granting reciprocal facilities to the
Turkish and Greek airlines operating in
the two territories.
14. Foreign trade figures were as
follows :—
Jan.-July 1947
Tons
£T.
exports
... 836,900
414,900,000
Total imports
... 321,700
(£36-8 million)
341,300,000
The principal countries involved
(£30-2 million)
were : —
Imports from —
£T.
United States ...
111,290,365
Italy
52,053,940
United Kingdom
46,527,948
Exports to —
Tons
£T.
United Kingdom
... 173,735
78,662,731
United States ...
... 54,246
76,096,509
Italy
... 141,942
60,197,902
15. Cost of living index (based on Janu
ary 1946 = 100) :—
1946
1947
January
100-00
114-19
February
100-45
114-19
March ...
99-14
119-20
April
100-24
118-20
May
100-24
117-50
J une
97-49
118-65
July
96-54
119-20
August ...
97-87
120-40
September
98-35
October
108-39
November
109-69
December
110-41
IV.—The Levant A geographical area corresponding to the region around the eastern Mediterranean Sea. States
(a) Syria
1. On 25th October the Socony Vacuum
Oil Company and the Shell Company, who
between them supply almost the whole of the
fuel oils for Syria and the Lebanon, in
formed the local Governments jointly that,
owing to the world shortage of tankers, pipe
lines and refining plant, the normal increases
required by the two States for 1948 could
not be supplied; furthermore, the Ameri-
ean company would be unable to continue
supplying at the present rate for the
remainder of 1947; the companies had, how
ever, agreed to pool their stocks and place
them at the disposal of the two Govern
ments so that the best possible distribution
of the fuel oil available could be made by
the two Governments. While the cut in
petrol is unlikely to have any serious reper
cussions, the reduction in the quantity of
gas oil will seriously affect the suppliers of
electricity and the users of gas-oil engines
for spinning, weaving, olive pressing and
pumping. It is certain that the Syrian
Government will try to obtain fuel oils
from Russian sources.
2. It is reported that the Syrian Govern
ment are contemplating the purchase of
hospital equipment to the value of between
£S. 500,000 and £S. 1 million.
3. Damascus .—Gold prices at 30th Octo
ber, 1947 :—
Sovereigns: £S. 46-90 to 47-70.
Five Tola Bars : £S. 265 to 266.
(b) The Lebanon
1. During the month the bread rationing
system threatened to break down on account
of shortage of supplies. Demonstrations
occurred in several provincial centres, and a
meeting was held between representatives of
the Lebanese and Syrian Governments on
17th October, as a result of which Syria
agreed to lend 3,000 tons of wheat and 2,000
tons of barley in order to maintain minimum
necessary supplies. In addition, the
Government succeeded in requisitioning
approximately 3,000 tons of cereals in the
hands of private dealers. There was, how
ever, widespread press criticism of the
Government, and in order to allay public
apprehension the Minister of National
Economy issued an official statement on
23rd October to the effect that supplies (in
stock or from orders) were assured until the
end of February.
2. Negotiations were continued in Paris
between representatives of the French,
Lebanese and Syrian Governments on the
question of the future of the local currency,
the backing for which is at present guaran
teed in francs by the French Treasury.
No official statement has been issued, but
unofficial reports all state that no agree
ment has been reached due to French insis
tence on payment of £S. 200 million as a
contribution to the upkeep of local levies
during the war. Meanwhile, the termina
tion of the allocations of hard currency
formerly made by the French to Lebanon
and Syria, and the fear that any devalua
tion of the franc will inevitably involve the
local currency, have induced a noticeable
lack of confidence in the local money
market.
3. On 16th October the Minister of
Finance discussed the present financial
situation at a press conference. He stated
that the Government’s holdings of hard
currencies were virtually exhausted (al
though, in fact, the Government hold
approximately £600,000), and that actual
expenditure during the current financial
year had exceeded the budgetary estimate
by £L. 18 million. In addition, the reserve
fund of the Government, which had com
prised £L. 20 million, was now reduced to
£L. 10 million, chiefly due to expenditure
by the Ministry of Public Works. Later
official statements have prepared public
opinion for a substantial budget deficit at
the end of the financial year, and the