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28
SECRET
income; the present inability of British pro-
near future, other expansion projects are also
duction to meet Iraqi orders, however, has led
being considered, development of which would
the Iraqi Government to approach IPC with
be under the jurisdiction of the Iraqi Govern-
a demand that a portion of these royalties be
ment. Experts have estimated that, through
paid in foreign exchange other than sterling
the implementation of a large-scale irrigation
and that the Royalty rate (presently quoted
project, Iraq could become a vast food-produc-
at 4 shillings gold per ton) be renegotiated.
ing area and thus contribute to the relief of
e. Foreign Trade.
famine conditions such as those which plague
British influence and Iraq's adherence to
India. It is considered probable that the land
the sterling bloc have inevitably resulted in the
under irrigation could be increased from its
directing of Iraqi foreign trade toward the
present approximately 6 1/2 million to 20 mil-
lion acres.
UK and other sterling countries. For essen-
At the invitation of the Iraqi Government,
tial purchases outside the sterling area, the
UK under the Anglo-Iraqi financial agreement
a group of British experts has been making
of 1945 has allocated approximately $14 mil-
a survey and is now engaged in drawing up
lion annually, which is released through the
a report to recommend a suitable plan for agri-
Exchange Control Board and debited against
cultural development. A project patterned
after the TVA is envisaged wherein an exten-
Iraq's sterling balance.
Iraq's principal exports consist of agricul-
sive irrigation scheme drawing upon the waters
tural products, including cereals (42 percent
of the Tigris and Euphrates would be com-
of total exports in 1946), dates (19 percent),
bined with subsidiary programs directed to-
and wool (10 percent). These are all marketed
ward raising the general standard of living of
through British monopoly arrangements and
the population. For the accomplishment of
yield only sterling. Principal imports are
this plan, the government is willing to pledge
manufactured goods. Accurate figures are
its future oil royalties.
difficult to obtain, but a rough balance of pay-
Other tentative capital development schemes
ments estimate for 1947 indicates that total
covering a four or five-year period include:
construction and extension of railroad lines;
payments of $86 million are only partially
offset by receipts of $74 million (including $9
erection of railway bridges; improvement of
million in oil royalties). This $12 million def-
the port of Basra; completion of certain ir-
icit was financed through the release of part
rigation projects already begun, such as the
of Iraq's sterling credit which had been
Habbaniya Flood Relief Scheme; and water
and electricity services.
blocked by the UK.
It may be predicted that implementation
5. Transjordan.
of Iraq's ambitious projects for internal de-
a. General.
velopment will make foreign credit in the form
The economy of Transjordan is almost en-
of foreign exchange necessary. With the pro-
tirely agricultural and pastoral. There is,
jected increase in oil production, however,
moreover, little prospect of future economic de-
royalties may possibly approach $50 million
velopment, since there are few natural re-
within a few years. Such receipts should more
sources, large desert areas unsuited for exploi-
than suffice to secure any credits extended.
tation, and little capital and skilled labor.
No significant increase in Iraq's trade with
Its principal strategic importance is its po-
the US is looked for until the UK's financial
sition athwart present and projected oil pipe-
position is sufficiently stable to permit the
lines.
resumption of the convertibility of sterling.
b. Agriculture.
The UK's favored commercial position in the
With the exception of rice, sugar, tea, and
country will also continue to hamper any ex-
coffee, which are imported, Transjordan or-
pansion of US trade.
dinarily produces a surplus of foodstuffs.
f. Development Projects.
Principal crops are cereals (wheat, barley, and
Besides the Iraq Petroleum Company's plans
millet), fruits, and vegetables. Sheep and
for a large increase in oil production in the
goats are raised in quantity.
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"ocrText": "28\nSECRET\nincome; the present inability of British pro-\nnear future, other expansion projects are also\nduction to meet Iraqi orders, however, has led\nbeing considered, development of which would\nthe Iraqi Government to approach IPC with\nbe under the jurisdiction of the Iraqi Govern-\na demand that a portion of these royalties be\nment. Experts have estimated that, through\npaid in foreign exchange other than sterling\nthe implementation of a large-scale irrigation\nand that the Royalty rate (presently quoted\nproject, Iraq could become a vast food-produc-\nat 4 shillings gold per ton) be renegotiated.\ning area and thus contribute to the relief of\ne. Foreign Trade.\nfamine conditions such as those which plague\nBritish influence and Iraq's adherence to\nIndia. It is considered probable that the land\nthe sterling bloc have inevitably resulted in the\nunder irrigation could be increased from its\ndirecting of Iraqi foreign trade toward the\npresent approximately 6 1/2 million to 20 mil-\nlion acres.\nUK and other sterling countries. For essen-\nAt the invitation of the Iraqi Government,\ntial purchases outside the sterling area, the\nUK under the Anglo-Iraqi financial agreement\na group of British experts has been making\nof 1945 has allocated approximately $14 mil-\na survey and is now engaged in drawing up\nlion annually, which is released through the\na report to recommend a suitable plan for agri-\nExchange Control Board and debited against\ncultural development. A project patterned\nafter the TVA is envisaged wherein an exten-\nIraq's sterling balance.\nIraq's principal exports consist of agricul-\nsive irrigation scheme drawing upon the waters\ntural products, including cereals (42 percent\nof the Tigris and Euphrates would be com-\nof total exports in 1946), dates (19 percent),\nbined with subsidiary programs directed to-\nand wool (10 percent). These are all marketed\nward raising the general standard of living of\nthrough British monopoly arrangements and\nthe population. For the accomplishment of\nyield only sterling. Principal imports are\nthis plan, the government is willing to pledge\nmanufactured goods. Accurate figures are\nits future oil royalties.\ndifficult to obtain, but a rough balance of pay-\nOther tentative capital development schemes\nments estimate for 1947 indicates that total\ncovering a four or five-year period include:\nconstruction and extension of railroad lines;\npayments of $86 million are only partially\noffset by receipts of $74 million (including $9\nerection of railway bridges; improvement of\nmillion in oil royalties). This $12 million def-\nthe port of Basra; completion of certain ir-\nicit was financed through the release of part\nrigation projects already begun, such as the\nof Iraq's sterling credit which had been\nHabbaniya Flood Relief Scheme; and water\nand electricity services.\nblocked by the UK.\nIt may be predicted that implementation\n5. Transjordan.\nof Iraq's ambitious projects for internal de-\na. General.\nvelopment will make foreign credit in the form\nThe economy of Transjordan is almost en-\nof foreign exchange necessary. With the pro-\ntirely agricultural and pastoral. There is,\njected increase in oil production, however,\nmoreover, little prospect of future economic de-\nroyalties may possibly approach $50 million\nvelopment, since there are few natural re-\nwithin a few years. Such receipts should more\nsources, large desert areas unsuited for exploi-\nthan suffice to secure any credits extended.\ntation, and little capital and skilled labor.\nNo significant increase in Iraq's trade with\nIts principal strategic importance is its po-\nthe US is looked for until the UK's financial\nsition athwart present and projected oil pipe-\nposition is sufficiently stable to permit the\nlines.\nresumption of the convertibility of sterling.\nb. Agriculture.\nThe UK's favored commercial position in the\nWith the exception of rice, sugar, tea, and\ncountry will also continue to hamper any ex-\ncoffee, which are imported, Transjordan or-\npansion of US trade.\ndinarily produces a surplus of foodstuffs.\nf. Development Projects.\nPrincipal crops are cereals (wheat, barley, and\nBesides the Iraq Petroleum Company's plans\nmillet), fruits, and vegetables. Sheep and\nfor a large increase in oil production in the\ngoats are raised in quantity."
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