ECONOMY OF EGYPT

Press, Volume XCIV, Issue 28158, 22 December 1956, Page 11

ECONOMY OF EGYPT

Allied Sanctions Take Effect

(Rec. 8 p.m.) LONDON. Dec. 21. Another question mark to Egypt’s ability to continue paying her way for any length of time has been added by three developments, says “The Times.”

First. China has placed a further 20.000.000 Swiss francs at the disposal of Egypt in Switzerland—the second credit of this type arranged by China in recent months.

Second, there is an unconfirmed report that Egypt may soon approach the International Monetary Fund for a further drawing of 15.000.000 dollars in addition to the same sum drawn at the end of September. Third is a reported purchase by Egypt of several tons of gold in Switzerland.

“The Times” adds that in general it is believed that Egypt’s total gold and foreign exchange holdings have not declined greatly in recent months, but this hardly means her financial position is not precarious. It can be assumed that because of the blocking of reserves by Britain, France and America, they have only about 180,000.000 dollars, which is equivalent to little more than four months’ imports at the level maintained earlier in the year.

The blocking of the canal has immediately cut out the receipt of canal dues. Russia has recently been supplying quantities of wheat and oil, but without continuous aid of this kind Egypt's long-term prospects remain fairly bleak, says “The Times.”

The First Lord of the Admiralty (Lord Hailsham) said that on technical grounds he did not see the slightest objection to “civilianising” the Suez fleet and putting it under the United Nations’ flag. He said: ‘‘We have always been prepared to work under the United Nations' flag, and I think that brings no dishonour in any way—no more than it brought dishonour on our troops fighting in Korea.” It was announced in New York that the United Nations canal clearance headquarters will move from Cairo to Ismailia next Wednesday, Plans were ready for a start on the operation “immediately after evacuation day.”

A statement received from an information officer in Cairo said General Raymond Wheeler and his entire staff would move into quarters at Ismailia provided by the Egyptian authorities, and that only a small liaison group would be left in Cairo.

General Wheeler conferred today with Dr. Mahmoud Yunes. the Egyptian director of the Suez Canal Authority. about starting the clearance job. the statement said. A further statement said that MajorGeneral E. L. M. Burns, the United Nations emergency force commander, had announced at El Ballah that the Jugoslav contingent was about 46 miles east of the Suez Canal, following the Israeli withdrawal in the Sinai Peninsula along the northern road east of El Kantara.

This unit was described as one of three Jugoslav contingents in the area, advancing on northern, central, and southern routes. The condition of the roads was still slowing the advance on the central road east of Ismailia, and on the southern road east of Suez. Genera] Burns said. The airport at Port Said was officially handed over today by the AngloFrench command to United Nations control. _ In Cairo, the Egyptian Government todav reaffirmed its decision to make Port Said into a “free harbour’”—a duty-free commercial zone exempt from customs and other duties. The Minister of Commerce (Mohammed Abu Nosseir) also announced that an annual trade fair will be held in future in Port Said opening on October 29. “the date of the treacherous attack.” and ending on December 17. The Minister said: “The trade of Port Said will be brisker than ever. The free zone project will contribute to the flourishing economic life not only of the city, but of the whole country.”