Britain has lent Egypt GBP5 million sterling to be spent on British equipment for Egyptian development projects.
GV Economics Ministry, Cairo
SV Sir Richard Beaumont and party arriving
CU Sign 'Ministry of Economy'
SV INTERIOR..Sir Richard greater by Mr. Merzaban - walk to seats
CU Portrait President Sadat
CU PAN..from Union Jack to Beaumont and Merzaban signing
SV Esaumont and Merzaban rise and shakes hands
Initials ES. 1640 ES. 1700
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Background: Britain has lent Egypt GBP5 million sterling to be spent on British equipment for Egyptian development projects. The loan, which will be repaid over 25 years at two per cent interest, follows discussions by Sir Alec Douglas-Home, the British Foreign Secretary, when he visited Cairo in September 1971. The loan documents were signed in Cairo on Tuesday (5 September) by the British Ambassador, Sir Richard Beaumont, and the Egyptian Economic Mistier, Mr Mohamed Merzaban.
Britain has also recently announced credits totalling GBP28 million sterling for Egypt, and observers see the moves as both a reflection of improved relations between Cairo and London and a reflection of Egypt's new campaign for more aid from Western Europe.
SYNOPSIS: The Economic Ministry in Cairo was the scene of unimportant meeting on Tuesday.
The British Ambassador, Sir Richard Beaumont arrived to sign an agreement for Britain to lend Egypt five million pounds. It will be paid back over twenty-five year at two per cent interest.
Mr. Mohamed Marzaban, the Egyptian Economics Mistier, met Sir Richard to sign the agreement, which followed a visit last year by Britain's Foreign Minister, Sir Also Douglas-Home, to Egypt's President Sadat.
The agreement is seen as a reflection of Egypt's campaign to seek more aid from Western Europe, and also of improved relations between cairo and London. The money will be used by Egypt to buy British equipment for special development projects. Britain has also arranged loans totalling twenty-eight million pounds for further Egyptian purchasing. Projects which will benefit immediately include the expansion of a juste and kenaf sack manufacturing plant at Belbeis, in Sharkia Province, and the establishment of a cotton ginning plant at Tala, in the Minufia Province. This will mark the beginning of the Egyptian Government's programme for rehabilitating the country's cotton industry.