EGYPTIAN COTTON CROP

Otago Daily Times, Issue 24372, 9 August 1940, Page 6

EGYPTIAN COTTON CROP

QUESTION OF DISPOSAL PURCHASE BY BRITAIN (British Official Wireless) RUGBY, Aug. 7. The Under-secretary for Foreign Affairs,'Mr R. A. Butler, in a statement in the House of Commons said that anxiety for some time had been growing in Egypt regarding the disposal of the 1940 cotton crop, the picking of which was about to ;be begun. Owing to the great reduction in the demand due to war conditions and export difficulties, the danger was imminent that the bulk of the crop would be left unsold in the cultivators' hands. The Egyptian ; Government had represented to Britain that its financial,resources did mot enable it to deal with the pror blems without assistance. Egypt s dependence on the sale of cotton was such that failure to lift the crop would be a disaster of the first magnitude, depriving millions of small cultivators of thejr means of sustenance. The British Government accordingly had decided to respond to this appeal from its ally by setting up a commission to purchase the cotton. The Egyptian Government was being askei to nominate a representative on the commission, which would be prepared to purchase before April 30. 1941, all lint cotton derived from the 1940 Egyptian crop, or as much as was offered to it, and all mercantile cotton seed —as distinct from growing seed. The British Government would bear the whole of any net loss which might arise from the transaction as a whole, but would nevertheless share equally with the Egyptian Government any net - profits that might accrue, on the understanding that such profits as might be returned to the Egyptian Government under the arrangement be used for the relief of cultivators in a manner to be agreed on by the two Governments.