London, Aug. 8.
The establishment of a commission, with powers to purchase Egyptian cotton crop, was announced yesterday in the House of Commons by Mr. R. A. Butler, Under Secretary of State for Foreign Affairs.
He declared that anxiety has been growing for some time in Egypt regarding the disposal of the 1940 cotton crop, the picking of which is about to begin.
Owing to a great reduction in the demand due to war conditions, and the difficulties of export, the danger was imminent that the bulk would be}, left unsold in. the hands of the cultivators, which would be an economic disaster of the first magnitude.
Following representations by the Egyptian to the British Government, the latter accordingly decided to respond by setting up a commission to purchase the cotton, on which the Egyptian Government was being asked to nominate its representative.
This commission would be prepared to purchase, before April 30, 1941, all lint and cotton derived from the 1940
Egyptian crop, or as much as was fered to them, and all mercantile
seed. scion seed, as distinct from sowing The British Government would bear the whole of any nett loss which might arise from the transaction as a whole, but they would share equally with the Egyptian Government any nett profits which might accrue on the understanding that such profits as may be returned to the Egyptian Government wider this arrangement, be used by that Government for the relief of cultivators in a manner to be agreed on between the two Governments.
Asked if the Egyptian Government, as an ally, was ce-operating to the fullest extent in this matter, Mr. Butler replied, amid cheers; "We take that for granted.""—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.