— 26 The alternative would be compulsory expropriation and redistribution of land, the objections to which would, however, appear to outweigh the advantages. The local cultivator is peculiarly attached to his holding and jealous of his land marks, and the disturbance and discontent which would result from any such policy might jeopardise the scheme for years. On the other hand it has been found possible, by following sakia boundaries, to divide the irrigation unit into " hoshes " of approximately 100 feddans, each served by a module which automatically regulates the water supply and ensures a uniform and known discharge. Distribution of water within the hosh is effected by one honorary sheikh chosen from the leading samads. Liability for the payment of water rate on a fixed area in each sakia is covered by a contract signed by the samad on behalf of himself and his partners. The " sakia " thus becomes the ultimate unit, and all implements, livestock, seed, &c., distributed on credit are issued on the security of sakia ownership.

The Fiscal System.—If, however, the greatest obstacle to extended production remains the absence of a loan fund and the machinery for its administration, the situation is little relieved by the costs of importing agricultural requisites.

The current fiscal system is reflected by a flat customs rate of 8 per cent, on the c.i.f. values of practically all imported goods, and by railway rates which yielded in the year 1913 profits of £E. 152,000 on a total overseas trade of £E. 3,295,000. As no question of the protection of local manufactures has arisen, such a system is admittedly a form of taxation, and its incidence on the instruments of agricultural production and consequently on agricultural development, is of obvious importance. Its effect on the local price of fuel has already been noted.

Import Costs.—It has been urged that the cost of production can best be reduced in the rainless north by the substitution of modern pumps for the sakia, and the result of a first demonstration was sufiiciently encouraging to warrant the recent importation of a second plant to serve an additional area.

The following statement of cost of importation is instructive :