Russian unmanufactured tobacco imports have continued to increase since the trade agreement between Russia and Egypt was concluded in 1909. This increase has harmed Turkish tobacco imports, which fell from 3,323,000 kilograms in 1910 to 2,931,000 kilograms in 1911. Imports of Porto-based tobacco continue to rise, as do imports of tobacco from Greece.

Cigarette exports have increased compared to 1910, indicating that superior Egyptian cigarettes are still in demand in countries that impose high duties on such imports. For example, Germany imported 108,000 kilograms last year, compared to 895,000 kilograms the previous year. Exports of cigarettes to the United States and Austria-Hungary have also increased, as these countries impose high duties on such imports.

The new tobacco warehouse in Alexandria has been in use since August. The tobacco currently stored in customs warehouses amounts to 156,300 bales, with 132,060 bales stored in Alexandria. This is 1,700 bales more than the largest quantity previously stored. This increase is likely due to two reasons: (1) traders' lack of confidence in the political situation in Turkey, which has led them to reduce their holdings in that country, and (2) financial stringency in Egypt, which compels lenders to require substantial collateral. If tobacco traders continue to move their goods to Egypt, the government will be forced to expand the warehouses. Last year's report mentioned that the practice of deducting 10 percent from the value of cotton, seeds, and grains before assessing duties has been in place since September 1911. Accordingly, customs declarations will in the future include a statement of export values based on the full tariff. Negotiations with the General Produce Company in Alexandria to change the basis for valuing cotton have led to the establishment of a system that takes into account the proportions of different types of cotton.

In conclusion, I will mention some noteworthy matters regarding Port Said. The wall surrounding the "free zone" in Port Said was built in accordance with Article 5 of the agreement concluded between the Egyptian government and the Suez Canal Company on February 1, 1902. However, the hopes for increased trade in Port Said following the completion of the broad-gauge railway have not been realized. The value of goods and tobacco exports from Port Said in 1903 was EGP 432,000.