Printed papers on the political situation and military policy in Egypt [‎52r] (103/176)

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239. The absence of Egyptian capital invested in Egyptian industries is as
noticeable as ever, and until the Egyptians can show their confidence in their own
industries by subscribing the necessary capital for the development of their own
industrial concerns, they cannot be surprised that the principal industries of the
country are still in the hands of the Europeans.
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38. Mines and Quarries Department.
Mines.
240. The approximate value of raw materials mined during the year was
£E. 1,296,862, being a decrease of £E. 58,538 on the value of the output of the
preceding year.
241. With the exception of petroleum the mining industry suffered from the
effect of the world-wide trade depression and the consequent difficulty in finding
buyers of the produce. This has been particularly marked in the case of phosphate,
most of the shipments of which, in 1921, consisted of forward contracts made the
previous year : 122,024 tons of phospate rock were, however, mined during the year.
242. The manganese mines started the year well with good prices, but the
demand soon fell off and only revived towards the close of the year. The production
of manganese iron ore in 1921 was 55,065 tons as compared with 77,562 tons in the
preceding year.
243. In the case of petroleum, prospecting by actual drilling has been more
active during 1921 than at any time since 1912. The areas thus being tested are
chiefly situated in hitherto untried localities. The production of crude petroleum
was 182,668 metric tons, an increase of 34,718 tons on the output of 1920.
244. The Government continued geological and drilling prospecting operations
on both sides of the Gulf of Suez and has proceeded with the erection of a small
refinery which is expected to be put into operation this year.
245. The mining industry in Egypt gave direct employment in 1921 to
7,368 Egyptians and 523 foreigners
Quarries.
246. The quarrying industry continues to expand to meet the demand for stone
created by irrigation works and the gradual resumption of building. During the
year 1,252 quarry licences were issued compared with 900 in 1920. A considerable
demand also exists for the raw materials required for the manufacture of plaster,
cements, drainage pipes, and pottery, and has been met by increased production
39. Department of Supplies.
247. The food situation in the early spring of 1921 was perplexing. In place
of the heavy and continuous demand throughout the winter months for Government
flour (75 per cent, wheaten and 25 per cent, corn flour), anticipated so confidently
by the Department, the actual sales had shrunk to small dimensions. It was not
easy to determine the cause of the decline. The production of the 1919-20 wheat
crop was far below the standard of Egyptian consumption in pre-war years, but no
whisper of shortage had been heard; indeed, the market, at periods, was overloaded
with supplies of Egyptian wheat. It appears probable that abnormally large stocks,
had been carried over from the 1918-19 harvest, and had swelled the production
of the following year. Such stocks now are known to have been held by cornfactors
and cultivators, influenced by the belief that the price of wheat during the last
half of the year 1920 would exceed that of the first six months. Speculators had
some ground for their confidence, for alarming rumours in the early summer of
1920 were current in Europe that the wheat supply of the world was short; and
when one great wheat exporting country hastily stopped further shipments abroad,
the Egyptian wheat holder was encouraged to continue his policy of holding up
stocks.
248. But the rapid, and severe, fall in cotton values at the close of the year
compelled all local traders to realise stocks. Cornfactors and cultivators were not
exempted from this universal necessity; the local market was flooded with cheap
wheat; and the Department of Supplies was left without customers. The
Department met the position by reducing its prices as wheat parities weakened,
but the continued excess of supply of local wheat over demand frustrated its efforts
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