Egyptian Parliament Discusses Egypt-palestine Railway Profits

(Jewish Telegraphic Agency Mail Service)

The question of the Egypt-Palestine Railway came up this week in the Chamber of Deputies. Mohamed Zaghlul Pasha who raised the question, asked that since the greater part of the railway between Kantara and Palestine is built on Egyptian soil, since the railway equipment belongs to Egypt and the direction of the line is in the hands of the Palestine Government, 1. “Has any agreement been reached between the two Governments concerning the railroad? 2. What part of the profits of the railroad has the Egyptian Government received? 3. If the Government does not receive any part of the profits has it received compensation for its land and equipment? 4. What is the stock worth and what has the Government done about obtaining compensation?”

The Minister of Transport in his reply said that the line between Rafa and Kantara was built at the expense of the British War Ministry and not of the Egyptian Government. During the war the Egyptian Government loaned some cars and locomotives to the British military government. In 1920 the British Government paid the Egyptian Railway Administration for the use of the equipment and the wear and tear of the stock, in cash and in adjustment of the Egyptian expenditures in the World War. It has also built, at its own expense, some lines west of the Suez Canal which it handed over to the Egyptian Government.

There exists no agreement between Egypt and the Palestine Government. Moreover, in 1920 it was proposed that the Egyptian Government take over the line between Kantara and Rafa. This it reiused to do because it feared that the expenditure would exceed the income. The Palestine Government likewise refused and the line consequently remained in the hands of the British Government.

Subsequently the Palestine Government undertook to direct the line. It follows, therefore, that the Egyptian Government can have no part in the profits of the railroads the Minister declared.