15 - 21 November 2001
Issue No.560
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Al-Ahram Weekly Online 15 - 21 November 2001 Issue No.560 |
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Al-Ahram:
A Diwan of contemporary life (416)
Egypt's "white gold" was the focus of an international conference on cotton held in Cairo in 1927. The crop was the country's agrarian bread and butter commodity and the conference served to clarify the positions of Egyptian cotton producers and weaving importers from Europe and the US. But tension was high throughout the deliberations because of the grievances voiced by the International Textile Federation against the price and quality of the crop and the tense relationship between cotton producers and textile manufacturers. From Al-Ahram, Professor Yunan Labib Rizk* covers the so-called cotton war
Agrarian gold mine
Cotton cultivation was introduced to Egypt in 1821 during the rule of the father of the modern state, Mohamed Ali. In the 1860s it stood in the forefront of Egypt's cash crops after cotton prices skyrocketed on international markets due to the American civil war and the blockade imposed by the north on the cotton- exporting states of the south. The following figures illustrate just how rapidly the cotton industry in Egypt has boomed. In 1860 there were no cotton exports. With the beginning of the US civil war the following year, Egypt exported 596,000 qantars (one qantar = 50 kilogrammes) and the following year 721,000 qantars. Then, in 1863, 1864 and 1865, exports soared to 1,182,000, 1,719,000, and 2,140,000 qantars respectively. During the American civil war (1861-1865) the price of Egyptian cotton increased by nearly 50 per cent. Little wonder then that Egyptians began to refer to this crop as their "white gold."
Although cotton prices dropped following the civil war, after the occupation of Egypt in 1882, British authorities pursued all possible avenues to sustain and expand cotton cultivation. After all, the fine textiles produced by Britain's Lancashire weaving plants depended upon the various types of high-quality cotton from Egypt. It was thus that from that day on cotton came to embody the spirit of Egypt's agrarian economy.
On 29 January 1927, on the occasion of the opening of an international conference on cotton in Cairo, Al-Ahram published "The Commercial History of Cotton in Egypt," by Amin Yahya Pasha. Even specialists in the economic history of Egypt found the study a source of interesting and useful information, making it worth presenting to Al-Ahram readers three-quarters of a century later.
At the time of Yahya's article, it was unclear whether cotton was cultivated in Egypt before the era of Mohamed Ali. Evidence indicates that it was, Yahya wrote, but on a very limited scale. Scientists accompanying the French expedition to Egypt (1798- 1801) discovered some cotton crops and recorded that it was cultivated in the form of bushes every eight to 10 years, or annually as stalks. The scientists noted that the cotton farming which had existed took place primarily in the Delta but farmers found it so unprofitable that they stopped cultivating it. It was thanks to Mohamed Ali that it was reintroduced and promoted to become "a crop of significance," wrote Yahya, adding that the founder of modern Egypt had brought over a team of French agronomists, promoted advancements in irrigation and offered tax exemptions to farmers who cultivated the new crop. Mohamed Ali's policies rapidly bore fruit. Yahya writes: "Within a short time, cultivation of this crop spread throughout Egypt and became a font of wealth that fundamentally changed the economy of the country and set the people on the path of progress. The name of Mohamed Ali will always be linked to this historic development."
The cultivation of cotton was introduced to Egypt in 1821 by Mohamed Ali, top left. Other big names in the industry included from the bottom right clockwise, Abu-Fath, Nahhas, Abaza, Fahmi Greiss and Yahya
At first, under Mohamed Ali, farmers left cotton bushes to stand for periods of up to 10 years. However, the agrarian economist writes, "Farmers soon realised it was preferable to uproot the bushes every three years because of the diminishing yield they produced after that period." The first type of cotton to be grown extensively in Egypt was Al-Ashmouni, which "came to fulfil all practical purposes in Egypt from the day it appeared up until the present." He continues, "Originating in the Delta, this type of cotton is white and its fibers are relatively short. Its cultivation quickly spread to Upper Egypt and it was the cream of the crop, so to speak, until 1888."
Then, a new type was introduced. Al-Mit Afifi, as it was known, was found to be much more valuable due to the length, fineness, strength and silky smoothness of its fibers, and it soon nudged Al-Ashmouni from its position of prominence. However, after some 20 years, the Al-Mit Afifi variety began to decline, at first losing the qualities for which it had become famous and, then blooming too late, thereby becoming exposed to the devastation of the cotton worm. "It was, therefore, necessary to find a variety that would mature before the cotton worm appeared."
The author made the interesting observation that most landowners who embarked on the cultivation of new varieties of cotton were of Greek origin. Although he did not go on to explain this phenomenon, it is common knowledge that Greeks were among the first large agrarian landholders in Egypt, being the first to benefit from Mohamed Ali's policy of selling off tracts of state-owned reclaimed land. Since the Al-Ab'aadiyat, as these estates were called, were relatively extensive, the new owners had land to spare for experimental agriculture. It also appears that the Greeks were more willing to venture into new yields than the Turkish aristocracy, who did not reside on their estates to begin with, and the rising landowning class of Egyptian mayors and village elders who lacked the famous Greek spirit of initiative.
The spread of cotton cultivation was not only linked to the redistribution of landownership, but also to extensive irrigation projects that made it possible to multiply the overall area of cultivable land -- and land given over to cotton cultivation in particular. If Mohamed Ali initiated ambitious irrigation projects, the spirit continued through the reign of Khedive Ismail and under the British occupation, thereby, as Yahya writes, "dotting the country with a vast network of irrigation and drainage canals that have virtually neared completion. Today all efforts are focused on enhancing these systems."
Following his review of the development of cotton cultivation, Yahya embarked on a detailed and relatively technical discussion of the progress of the Egyptian cotton trade. According to Yahya, two major developments marked this period. The first was in 1821 when the price of Egyptian cotton was put on the Liverpool stock exchange. The second was in 1861 when the cotton future market opened in Alexandria. With regard to the latter he writes, "This was the first stock exchange in the world for cotton contracts. Alexandria also has a major commodities market in Mina Al-Basal. The future stock exchange is supervised by the commodities exchange commission in Alexandria which consists of representatives of brokers and exporters."
Yahya's article was the subject of one of the lectures at the international cotton conference held in Cairo in early 1927. The conference, intended to serve as a forum for dialogue between Egyptian cotton producers and weaving importers from Europe and the US, opened on 25 January. Al-Ahram's correspondent described the inaugural ceremonies as follows: "At noon, First Chamberlain Ahmed Mohamed Hassanein, entered the royal box in the Opera House and announced in French 'His Majesty the King!' All present in the Opera House rose as the king entered. He acknowledged the audience with a salute and proclaimed in French the opening of the conference. Seated with the king was the prime minister. Palace officials were seated in the adjacent box, Speaker of the House Saad Zaghlul in the next box and other cabinet members occupied the rest."
The minister of agriculture, Barakat Pasha, delivered the inaugural address, in which he stated the measures the government had adopted to promote cotton cultivation. These included the passage of legislation to regulate the sowing of seeds and prevent the import of contaminated seeds to ensure the selection of the best quality seeds and to keep the different varieties separate before they were distributed to farmers. The government had also decided to reduce the amount of acreage given over to cotton cultivation to one-third of holdings countrywide, while taking all possible steps to improve and expand drainage systems according to the latest technology.
It was clear from the conference agenda, however, that its primary purpose was not to explore ways to improve Egypt's "white gold," but rather to address the grievances of the International Textile Federation, which was headed by the chairman of the British Cotton Weavers Federation and director of one of Britain's largest textile plants. Representing Egyptian cotton producers were large agrarian landholders, prominent cotton merchants and a number of senior Egyptian and foreign officials at the Ministry of Agriculture.
That the Egyptians were eager to reassure the International Textile Federation delegates is apparent from the papers delivered by Egyptian cotton producers following the opening address. The tenor of these papers, which were published in Al- Ahram, suggests that the Egyptian side hoped to forestall the federation members' complaints.
The first speaker, Victor Mosseri, presented a paper on new research on ways to improve Egyptian cotton and the selection of seeds. He first addressed developments with regard to seed screening, which included selecting out seeds taken from plants not more than five or six years old. However, the thrust of his paper pertained to the declining prices of cotton due to surplus yields, which had forced the government to reduce the acreage under cotton cultivation although this was undesirable. He said, "The drop in prices, in fact, is due to the abundant cotton yield in the US. Therefore, the more appropriate way to counter declining prices is to reduce production costs, not land area allocated to cotton cultivation." He also faulted the agrarian system in Egypt for the lack of agricultural unions, livestock insurance schemes and financial loan agencies.
"The distribution of cotton seeds" was the title of the next paper, delivered by Alfonse Greiss Bek, who complained that small cotton producers were unable to obtain the new seeds necessary for a healthier cotton crop because they could only obtain them from local merchants on credit. As a result, "The quality of Egyptian cotton has been affected and the complaints of textile manufactures have increased." Greiss was the director of the Agricultural Department at the Ministry of Agriculture and was thus in a position to inform his audience of the steps the government had taken to change the situation. Since 1911, he said, the government had assumed the responsibility of distributing seeds, a policy that began experimentally in Al-Sharqiya Province and was so successful that it soon was applied to other provincial directorates and led, 10 years later, to the creation of the Department of Agricultural Research for the purpose of increasing seed production. Now, he continued, "The ministry purchases seeds directly from the ginneries and monitors the varieties that are sold to farmers on credit."
The director of the Parasitic Department in the Ministry of Agriculture, Tawfiq Fahmi, delivered a paper on the cotton withering disease. A fungus which infects long-staple cotton varieties was first discovered by Mosseri in 1902, Fahmi said. "Unfortunately, it is widespread in the areas that are most suited to agriculture in the Delta and has become so severe in some parts that many cotton farmers have had to abandon long-staple cotton for short-staple varieties which are resistant to this fungus."
Symptoms of the disease begin to show up on the leaves when plants are two to three months old and between 30 and 35 centimetres tall, after which the fungus begins to spread to other plants. "If nothing is done to combat this parasite it will put Egypt, as a long-staple cotton producer, into a very difficult position." Fahmi's branch of the ministry had discovered some long- staple strains that were resistant to the parasite and began to breed them on experimental farms. Even after agronomists exposed these strains to heavy doses of the fungi, plants thrived and now formed "a centre for producing seeds of long-staple cotton plants resistant to the disease."
Youssef Nahhas, a prominent cotton producer, hoped to allay the fears of some participants, declaring that cotton producers and textile manufacturers were not, as some claim, enemies. "The fact is that if the problems that prevent their cooperation are resolved, they become natural allies whose interests can best be served through cooperation." Nahhas continued: "After all, both are producers, one of the primary material and the other of the manufactured product. The only disputes that would understandably arise, therefore, are those between producers, on the one hand and, on the other, consumers who want to get hold of their products as cheaply as they can."
Nahhas appealed to the representatives of textile manufacturers to consider the question of cotton prices "free of preconceived notions that have prevailed in recent times." When they approach the issue with an open mind "they will realise it is in their interests to lend assistance to Egyptian cotton producers," he concluded.
The representatives of the textile manufacturers were not receptive to such conciliatory language. They had come to Egypt with specific demands and intended to have them met. As a result, tensions ran high between the primary material producers and the manufactured product producers during the entire conference, in the addresses delivered by the representatives of the latter, in the discussions that took place in the conference hall and in the press.
On 29 January, Mr Howarth, the director of the British Society for Soft Cotton Spinning, addressed the various factors involved in the weaving of Egypt's prized long-staple Sakalarides cotton. He complained of the high cost of this variety, particularly when compared to the prices of American raw cotton. "Adding to the costs of weaving this variety of cotton," he said, "is its high moisture content."
The next to speak that day was Mr Wagner, a member of the Weavers Committee, who reiterated Howarth's grievance concerning the price. Moreover, Wagner added, the problem affects all types of Egyptian cotton, such as Al-Ashmouni and Al- Zagoura, which produce a much tighter weave than American and West African varieties. This factor, too, "makes it necessary that merchants and producers take all possible steps to keep the prices of these cottons lower than their competitors."
The third speaker, again British, aired the complaint of Lancashire spinners that a large portion of Egyptian cotton goes to waste because of humidity and bad spinning. "These problems can be easily avoided with greater vigilance on the part of cotton producers, thereby benefiting both parties," he said.
Discussions at the conference often became heated. On 26 January, Col Brown charged that every year European manufacturers received large numbers of cotton bales contaminated with "strange substances," causing them huge financial losses. His accusation, which came in response to Nahhas' address, was followed by a cautionary note delivered by a French delegate that Egyptian cotton had become a luxury item. Egyptian cotton "is not an essential commodity that people are forced to buy," he said. "If its price rises beyond an acceptable limit, they will stop buying it and turn to other textiles." Two other British delegates agreed.
Keen to present its readers with both sides of the story, Al- Ahram sent its star reporter, Mahmoud Abul-Fath, to interview some of the most prominent representatives of the European textile manufacturers. Abul-Fath went first to Mr Hollroyd, who expressed his concern over the decision of the Egyptian government to reduce the amount of land under cotton cultivation. He warned that if the government acted upon this decision European textile manufacturers would turn to other countries to purchase their cotton. He suggested that the issue concerned Egyptian farmers more than the producers who were attending the conference and invited his host to "drink to the health of the unbreakable bond between weavers and farmers."
Abul-Fath also interviewed Count Jean de Homtine, vice chairman of the International Cotton Weavers Federation, president of the Belgian Cotton Association and the owner of Belgium's largest textile firm. Despite the niceties in this interview, the count was more direct than his British associate. Weavers and producers were at a difficult crossroads, he said, and they would have to do their best to reach mutually beneficial results. "There are issues in which it may appear that the interests of weavers and producers diverge, but upon closer inspection one finds that there are some areas of agreement."
The Al-Ahram reporter's next interview was with Mr Taylor, the manager of the Liverpool-based Taylor Company and vice president of the British Cotton Association. Taylor was in a different position, as he represented a firm that imported cotton from producers and sold it to weavers. Abul-Fath pointed out in his introduction that many speakers at the conference had charged that such intermediary companies were the major cause of the high prices of Egyptian cotton and should be circumvented. Naturally, Taylor defended the role his company and others like it played.
It did little to help the Egyptian position that most senior officials at the Ministry of Agriculture were British. Perhaps the best illustration of this appeared in Al-Ahram of 1 February under the headline, "An unfortunate incident." At one point in the discussions, on the method of estimating the quantities of Egyptian cotton, Mr Williams, who supervised this operation at the Ministry of Agriculture, stood up to complain that not only was his department understaffed, but the staff members he did have were so indifferent to their jobs that "even if they could handle numbers, they cared little for giving correct figures." The article goes on to report, "Fouad Abaza whispered in Williams' ear, warning him of the danger of what he was saying, but Williams continued in the same vein."
As the conference's lectures and discussions continued, negotiations went on behind the scenes. The negotiating teams consisted of Amin Yahya, Youssef Nahhas, Naguib Shakkur and Fouad Abaza, on behalf of Egyptian producers, and Hollroyd, de Homtine, Howard and Pierce, representing European weavers. The negotiations resulted in a statement that was read out at the end of the conference, registering the grievances of the weavers: the high moisture content in Egyptian cotton, the presence of other substances in the shipments and the admixture of different varieties in a single bale. More important, however, was the resolution to create a joint committee, representing importers from abroad and producers and exporters in Egypt, in order to study all issues that arise concerning Egyptian cotton.
The results of the conference were well received in the British press. The Financial Times believed that the Egyptian side had benefited from the encouragement and advice they received at the conference and it expected "improvements in production and export that will benefit both parties." The Manchester Guardian lauded the decision to create a joint committee as "the greatest action of the conference," adding, "If the members of this committee are selected well, the committee will be of considerable practical value, worth more than dozens of conferences."
Public opinion in Egypt, on the other hand, was wary of the findings of the committee, perceiving it as a form of foreign mandate imposed on their country's "white gold." In order to allay these fears, major cotton producers in Egypt released a number of statements, perhaps the most important of which was that of Fouad Abaza, on 11 March, to the effect that the conference had succeeded in creating a bond of friendship between Egypt and Lancashire, "our major customer." But such assurances made scant difference. Egyptians had learned from experience since the occupation in 1882 to view all agreements with the British with a suspicious eye. To many, therefore, the "cotton war" of 1927 was just another round in the long battle for national sovereignty.
* The author is a professor of history and head of Al-Ahram History Studies Centre.
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