مجموعة ١/٥٤(س) "لجنة الشرق الأوسط (الرسمية): إعادة الإعمار" [و‎‎٩] (٩٤٠/٢٢)

(II) Present Financial Posi tion
7 # During the British Occupation there has been an average
annual deficit on external trade of approximately £4^0,000, and
although the total volume of trade has been increased considerably-*,
the deficit for the year 1948* excluding the value of sponges on
which export duty was paid but which were not, in fact, true
'exports, was still in the region of .0400,000.
>
8. Prom the beginning of the British Occupation up to 30th
June,'. 1947, during which period the Administration was confined
within a policy of care and maintenance, the average annual
Budgetary Deficit was approximately £300,000. Since then the
deficit has gradually increased as a result of a more expansive
policy and it is probable that it may reach an amount of
£ 1 , 250,000 for 1950/51.
(ill) Possibilities of Economic Development^
9. During 1946/47 a Working Party was sent to the
Territory by His Majesty*s Government to examine the position and
to make recommendations with a view to a more progressive policy
for rehabilitation and development. Measures recommended included
the establishment of •'agricultural and hill farms research stations,
a survey of water resources, irrigation schemes, importation 01
seeds and implements, recovery of neglected vineyards, the
progressive settlement of Arab farmers with technical guidance
and loan assistance, limited re-afforestation, the extension of
veterinary services, the organisation ot exports, the creation of
a fund £)r loans to local industry and the relief of the destitute
and war distressed. Recommendations were also made for the
expansion of Education and Medical Services, ihe greater x j art
8f these recommendations has already been x^ut into effect and the
cost is reflected in the increasing Budgetary Deficit to which
reference is made above.
10, Although the measures already initiated are for the most
part preliminary to or in themselves ! long-term measures
which may be expected to gather impetus as they are developed,
the stage of survey has not yet been passed and more comxjrehensive
planning must await the result of further surveys which are now
being made. Activities undertaken thereafter will be economic
possibilities conditioned by potential local resources and the
characteristics of the x^Gopl 0 * ^ likely that any major
development in the early stages v/ill be in the agitoul Jural and
pastoral fields but an essential early activity v/ill be the
education and training of the local inhabitants to play a proper
part in the economic life of the country, including the training
of skilled craftsmen and executives for commerce and industry.
The provision of adequate primary services, is, however, an
essential condition of development. Therefor plans have already
boon formulated, or are in the process of being formulated, for
the rehabilitation and expansion of communications, water
supplies (depending to some extent on the result of the Water
Survey), sewage in urban districts, and power.
11. If military exuan'llture-in place, it is
certain to have the effect of stimulating economic activity, and
employment might be found for a limited number of Arab refugees,
(IV) Conclusions
12, It is clear that the economy of the country must
continue to rest mainly on agriculture and pastoral pursuits, as
in other North African Territories, The first requirement is to
ensure an adequate supply of water and an extensive survey
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