Chapter Two On Economic Matters (10) The Economic Situation of the Country In my previous report (pages 28-36), I discussed the economic situation of Egypt, and the general conclusion I reached was that "prosperity, wealth, and security in Egypt are on a solid foundation." 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 independently examining the situation. Mr. Edmond Thery stated in the "Economiste Européen" magazine, in its November issue, that "Egypt's prosperity is built on very strong foundations. It is the result of well-conceived reforms that have been systematically implemented, doubling 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 than there, as it is more densely populated, its labor wages are lower, and its soil and climate conditions are incomparably more suitable for continuous agriculture than Argentina's."

The value of agricultural land continues to rise steadily. The degree of its increase is evident from the following facts: Last year, the Domains Department auctioned off 19,013 feddans, with each plot measuring approximately 17 feddans. This land was registered in the Domains ledger, established a few years ago, at a value of 324 Egyptian pounds per feddan. The average price at which it was sold was 748 Egyptian pounds. The number of bidders was 545, all Egyptians except for five. This is further evidence that land is not generally transferring into foreign hands. (1) I have been informed that this land yields its buyers an annual profit of 4 1/3 to 4 percent on the prices they paid. From these figures, it can be inferred that the value of land has nearly reached its peak. However, many trusted sources believe there is still room for further increase, assuming cotton prices do not fall significantly and permanently. (2) (1) See Chapter 14 on "Land Distribution." (2) See other notes on this subject in Chapter 24 under the title "Trade and Customs."