Printed papers on the political situation and military policy in Egypt [‎39r] (77/176)

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high ireights, and by the operations of speculators. A correspondence between the
British and Egyptian Governments as to the best means of overcoming these
difiiculties resulted in an arrangement by which His Majesty’s Government
undertook to purchase at a fixed price, and ship, the whole exportable surplus of
the 1917-18 crop of cotton seed.
53. A consultative commission, composed of official and unofficial experts, was
appointed early in August 1917 to study the method of application of this
arrangement. This commission recommended the immediate announcement of
preliminary measures, and the formation, for giving effect to the arrangements,
of a board composed of three representative members of the cotton and cotton seed
export trade, a banker and a Government official.
54. In pursuance of these recommendations, a proclamation was issued on the
12th August, 1917, prohibiting all further dealings in futures for the 1917-18 crop;
ordering the liquidation of all outstanding positions at the prices ruling at that
date, viz., P.T. 107^ per ardeb for November to January deliveries, and
P T. 1094 for February/March shipments, and forbidding the purchase of
any ginned seed of the 1917-18 crop, except under such regulations as might
subsequently be made. This was followed by a proclamation, published on the
3rd September, 1917, creating the Cotton Seed Control Board, and appointing as
its members : Messrs. Percy W. Carver {Chairman), Harold Carver and Henry
Baker, members of export houses, B. Hornsby, Sub-Governor of the National Bank,
and J. A. Tarrell, Chief Inspector, Egyptian Customs Administration.
Mr. H. Bridson, Chartered Accountant, was appointed as auditor on behalf of His
Majesty's Government.
55. The last-mentioned proclamation fixed standard prices for seed delivered
in Alexandria as follows :—
Per Ardeb.
P.T.
Fayumi and Upper Egypt, f.a.q. ... ... 100
Afifi, Assili, Nubari and Abbassi, f.a.q. ... ... 92
Sakellarides, f.a.q. ... ... ... ... 85
50. The board was authorised to purchase, directly or through agents, on the
basis of these standard prices; to fix from time to time the f.a.q. standard of the
above qualities; to fix allowances for qualities above and below the standards; to
issue licences to local oil crushers for the purchase of seed, and to purchase, if
necessary, the resultant products.
57. Special provision was made for the allotment of seed for sowing purposes
under the authority of the Ministry of Agriculture, which issued an order to the
effect that cotton seed might only leave a ginnery under the authority of the Ministry
or of the Cotton Seed Control Board.
58. In practice, the purchase and loading of seed for account of the Board
was entrusted to firms of standing in the cotton and cotton seed trade, on a
commission basis, all expenses of reception, storing and shipping being borne by
the board, which allotted among these firms the shipping space provided by
His Majesty’s Government.
59. The board allotted to the local crushing mills, in proportion to their
capacity, licences for the purchase, at the standard prices, of the quantity of seed
reserved to meet the local requirements of oil, reserving to itself the right to purchase
the resultant cake.
60. The fixing of the quantity of seed to be reserved for the Egyptian mills
gave rise to a long discussion. It was at first estimated that 100,000 tons of seed
would amply provide for the oil requirements of the Egyptian market; but, earlv
in the season, it was realised that, owing to falling off in the import of edible fats
and also of mineral oil (resulting in the use of cotton oil as an illuminant),
consumption had risen much above the normal, and. in the event, it was found
necessary to exceed this limit.
61. Another early problem was the disposal of local produced cake. The
British Government anticipated difficulty in providing tonnage for its transport,
while there was no demand for it in Egypt. Happily, the growing scarcity of fuel
in Egypt created a local demand for it, and eventually the Egyptian Government
elected to retain the whole output of the local mills.
62. Other difficulties with which the board had to contend were alternate
congestion of stocks at Alexandria owing to shortage of shipping, and dearth of
supplies owing to congestion on the Egyptian State Railways, transport of seed