Ext 8835/47 'Middle East: monthly economic reports' [‎10v] (20/30)

Government holdings of dollars and ster
ling have been blocked to allow for the
official purchases which the Government is
trying to negotiate in the Western hemis
phere and in Australia. An application
for assistance has been made to the Soviet
Government and is being pursued by the
Lebanese Minister in Moscow. In order to
ease the situation meanwhile a decree has
been published allowing the import of
wheat and flour on private account without
import licence.
The price of food-stuffs, especially sugar
and cooking fat, has risen since last month.
14. Preliminary work has begun on the
new civil airport at Khaldd, near Beirut.
The Lebanese Ministry of Public Works
have obtained from the Trans-Arabian
Pipeline Company the use of equipment and
the services of technicians to assist in the
levelling of the ground. The final plans
and layout have still not been approved.
A civil air agreement has been signed
between Lebanon and Turkey.
15. A convention was signed on 23rd
August between the Lebanese Government
and the Compagnie Fran^aise des Petroles
giving the latter the right to erect and
operate oil refineries in the Lebanon for a
period of seventy years.
16. The expected influx of American
employees of the Trans-Arabian Pipeline
Company has led to an increase in rents
and to a large increase in the wages asked
by domestic labour. The high wages offered
by the company are attracting numbers of
workers from other employment, including
Government departments, and the Ministry
of Public Works is reported to have opened
discussions with the company in order that
the latter may adopt wage scales more in
accordance with local standards.
17. Wholseale Price Index, September
1947 = 790.
Cost of living, August 1947 = 490 (July
1947 = 487), (July-August 1939 = 100).
(Note .—The leading commercial journal,
Le Commerce du Levant A geographical area corresponding to the region around the eastern Mediterranean Sea. , disputes the
official figures, asserting that from an
analysis of the prices of six staple food
commodities the cost of living index
figure should be 640.)
Currency circulation at 30th September,
1947 = £Leb. 151,000,000.
Gold prices at 1st October, 1947—
Sovereigns = 42 • 10-42 • 15.
Five Tola Bar = 247-248.
V.—Palestine
Activity was concentrated upon
preparations for winter cereals; including
ploughing, manuring and the securing of
seed supplies. Except in the Gaza district,
the area that has been tractor-ploughed is
larger than last year and the present high
price of grain has provided the necessary
incentive to farmers to concentrate on
cereals rather than on pulses. In^^he
drought-stricken areas Government is pro
viding a loan of £P.75,000 to assist im
poverished farmers to pay for their tractor-
ploughing. The distribution of grain and
fodder in these areas is continuing. The
area that will be dry sown (“ Afir ”) is likely
to be smaller than usual; farmers are re
luctant to risk the small supplies of seed
at their disposal and in many places the
draught animals are too weak to plough the
ground before it has been softened by the
rains.
2. The production of Palestine standard
flour was maintained in September at the
August level of over 11,000 tons. As no
barley was available and stocks of rye were
practically exhausted, Palestine standard
flour was produced from imported wheat
and wheat flour in the proportion of 65 per
cent, to 35 per cent., the wheat being milled
to 90 per cent. In the cereal group prices
generally remained firm at the former high
level. Wheat is still quoted at £P.63 and
barley at £P.40 per ton; prices were some
what lower in the Gaza district, where the
Government distribution of these grains is
in progress. The price of maize fell from
£P.38 to £P.34 per ton following a Govern
ment import of 7,500 tons of maize from
Turkey. The import and distribution of
grain and fodder by Government has had
a steadying effect on the market.
The tobacco crop is in the process of
curing; yields this year were only fair.
3. Imports of cattle remained inadequate
to build up a sufficient reserve in the
country. Importers of Turkish cattle
experience great difficulty in obtaining
export licences as the Turkish Government
have not yet fixed the export quota for live
stock for the coming year, while the
Government of Iraq does not issue licences
for export of cattle to Palestine. The
expansion of the ploughed-up area has
worsened the plight of that large majority
of livestock that is unfortunate enough to
be dependent for its existence upon natural
grazing. Working animals are being hand-
fed with kersenneh and tibben, but village
cattle, sheep and goats have to forage hard
to find enough food to keep themselves alive.
The situation was aggravated by the influx
into some areas of large flocks from neigh
bouring countries. The sheep and goat