Chapter Two On Economic Matters (10) The Economic Situation of the Country In my previous report (pages 28-36) on the economic situation of Egypt, I concluded that "prosperity and wealth are firmly established in Egypt." I still hold this opinion, and I am pleased that one of the most trusted authorities on these matters has reached a similar conclusion after an independent examination of the issues. Monsieur Edmond Théry, an "economist European," stated in his November publication that "Egypt's prosperity is based on very solid foundations, as it is the fruit of well-conceived reforms that can systematically double the value of what the people earn." This is the same situation observed in the Argentine Republic ten years ago, but it is more pronounced in Egypt because it is more densely populated, the cost of capital is lower, and the soil and climate conditions are incomparably more favorable for continuous cultivation than in Argentina.

The value of agricultural land continues to increase steadily. The degree of this increase is evident from the following facts: Last year, the Domains Administration sold 19,013 feddans at auction, with each plot measuring approximately 17 feddans. This land was previously valued in the Domains magazine a few years ago at £E 34 per feddan, and the average selling price was £E 48.7. The number of bidders was 515, all Egyptians except for five. This is further evidence that land is not being transferred to foreign hands through installments.

I have been informed that this land may yield its buyers a return of 4.1% to 4.4% on the prices they paid. From these figures, it can be inferred that the value of land has almost reached its peak. However, many authorities believe there is still room for further increase, assuming that cotton prices do not fall significantly and permanently.

(1) See Chapter 14 on "Land Distribution." (2) See other notes on this subject in Chapter 24 under the title "Trade and Customs."