RESTRICTED GENERAL AGREEMENT ON L/111 TARIFFS AND TRADE 25 August 1953 Limited Distribution Original: English

ITALY - SPECIAL CUSTOMS TREATMENT FOR LIBYAN PRODUCTS First Report (1953) by the Government of Libya

1. In accordance with the Decision of the CONTRACTING PARTIES of 9 October 1952; I have now the pleasure of submitting to you on behalf of my Government a report on the economic progress made and expected which would permit Libya to participate in international trade on a normal competit- ive basis. In order to helpthe CONTRACTING PARTIES judge the progress that has been made in this direction since their Decision was taken, the attached comparative tables have been drawn up showing the quantities and values of Libyan products exported to Italy covered by the waiver, during the first six months of 1952 and 1953. 2, Before considering these figures and in order not to attach too much importance to them, it should be borne in mind that several factors have an influence on then which nay distort the picture from year to year, and tend to nullify during any one specific year the benefits which should have accrued from the various schemes which have or are being put into force, 80 that the waiver may be raised as soon as possible. As the CONTRACTING PARTIES are aware, Libya is primarily an agricultural country, subject to wide variations in its elimatic conditions. Although irrigation is used in the coastal belt, the greater part of the country is dependent on rainfall and the latter varies not only from region to region, but also greatly in quantity and timing from year to year. Also the hot dry wind coming from the South known as the "Ghibli" can, in a few days, turn a prospective bountiful orop to nothing. The last two years are typical examples of these unfortunate conditions, During the autumn and winter of 1951/52, rainfall was not only plentiful, but it came at the right time. Likewise, during the intervals without rain, the weather was sunny and warm so that by February everything indicated bumper cereal, citrus and olive crops. Then came the "Ghibli" which raged for almost a week with temperatures of 110° F. When it had stopped, the cereal crop had been reduced to less than an average one, citrus fruit's were, almost eliminated and the olive crop was so reduced that Libya was obliged to import groundnut oil to meet edible oil require- ments. For 1952/53, the cycle was almost exactly the contrary. No rain fell until December, so that pasture was extremely poor and the lambs were dying in large numbers. Then came three months of almost continuous rain which, although net in the Jebel area, permitted late swings of cereals which L/111 Page 2 have given only a below average crop, which of course 18 better than complete disaster. However, the rainfall was at the right time for citrus and olives so that both crops should be excellent this year. 3. When considering the various schemes which have been, or are being, put into being to help Libya's economic progress, it must be borne in mind that the standard of general education in Libya is low, even for the Middle East. Also local specialists in farming, etc., etc., are practically non- existent. Because of this Libya has been obliged to start almost from scratch, so, that progress must, of necessity be extremely slow, although she is taking full advantage of foreign help offered by the United Nations, Point Pour Aid and general aid from sympathetic external sources. This aid is centralized in the United Nations Technical Assistance Mission to Libyas the Libyan American Technical Assistance Agreement (L.A.T.A.S.), and the Libyan Public Development and Stabilization Agency, to which the United Kingdom makes the largest monetary contribution. Although these three bodies are completely separate with their own specific schemes, their activities are co-ordinated through the Economic Planning Committee, set up for this purpose by the Libyan Government and whose meetings are attended by represen- tatives from all three institutions, as well by high ranking Iibyan officials. This is the background to Libyats efforts.

4. The various schemes that have been drawn up can be divided into three categories: Long term, medium term, and short term (capable of showing immediate results). The following are the most important schemes listed under these categories:

A - LONG TERM: (10 to 20 years before substantial results should be obtained). (i) Education: (a) General (b) Agricultural training (c) Arts and crafts. (ïi) Health Improvements (iii) Natural Resources Programmes (iv) Soil and Water Conservation Programmes (v) Forestry Developnent Programme. B -MEDIUM TERM: (5 to 10 years) (i) Harbours and Ports Improvement Programmes (ii) Sheep Breeding and Range Management L/111 Page 3

(iii) Artesian Well Development Programme (iv) Improvement of Trees (fruit) (v) General Agricultural Development Scheme.

C - SHORT TERM: (possibility of immediate results) (i) Date Processing and Packing (ii) Preparation of Rides and Skins (iii) Marketing of Agricultural Produce.

5. Apart from these schemes, the Libyan Government is encouraging the setting up of local industries by according customs relief., etc., in respect of imported machinery to companies and individuals who wish to start new enterprises. Concessions of this nature have been granted to a pharmaceutical factor several olive oil refineries, etc, and plans are at present under study for the setting up of a match factory, a sugar refinery and a refrigera- tion plant, etc, 6. It will be seen from the foregoing that Libya is doing the utmost to obviate the necessity of receiving such special treatment as accorded to her by Italy under the present waiver and although , through no fault of her Own, results so far are not very groat, it is almost certain that results will become satisfactory in the course of the next few years, as the schemes gather momentum. L/111 Page 4

GOODS EXPORTED FROM LIBYA TO ITALY

Period - January to June 1952 and January to June 1953

SUMMARY

Goode admitted to Italian preferential Jan. to June Jan. to June rates of duty 1953 1952 a .. LL LL Tripolitania 90,156 168 212 Cyrenaica 333,496 54-1 991 TOTAL 423,652 7109203

.Goods subject to Italian normal rates of duty Tripolitania 113,957 68,973 Cyrenaica 101,920 14. 4. TOTAL 215,877 144-, 777

Grand Total Tripolitania 204,113 237,185 Cyrenaica 435,416 617,795 TOTAL 639,529 854,980 L/111 Page 5

GOODS EXPORTED FROM LIBYA TO ITALY Goods admitted into Italy at preferential duty Period January to June 1952 and January to June-1953 Jan, to June 1953 Jan. to June 1952 Description or Goods Kgms LLib. Kgms - LLib. Fresh Fish Tripolitania 2,000 184 2,500 143 Cyrenaica '1 Total 2*000 184 2,500 143 Salted Sardines Tripolitania 4 892 340 Cyrenaica 0. Total 4,892 340

Tripolitania 17,180 2,674 3,900 572 Cyrenaica Total 1T, 180 2,674 3,900 572 Salted Intestines Tripolitania 5,818 3,645 1,889 Cyrenaica 28,185 4,732 4,093 1,393 Total 34,003 8,377 3,282 Tomatees Tripolitania 1,500 94 Cyrenaica Total 1,500 94 Dates Tripolitania 21t069 747 11,959 468 Cyrenaica Total 21,069 747 11,959 468 Peanuts Tripolitania 416,847 46s547 2,000 64 Cyrenaica Total 416.847 46,547 2,000 64 Castor Seeds Tripolitania 48,376 6,801 Cyrenaica Total 48,378 L/111 Page 6 Jan. to June 1953 Jan. to June 1952 Description of Goods Kgms LLib. Kgms LLib. Vegetable Oil Tripolitania 172,179 30,575 Cyrenaica Total 172,179 30,575 Caster Oil Tripolitania 34$880 4 883 _ 0

Cyrenaica 0* . * Total 34.880 4^883 Tunny Fish Tripolitania 7,786 519 33,485 8,584 Cyrenaica Total 7,786 519 33.485 8,584 Raw Skins Tripolitania 35,098 5,848 Cyrenaica Total 35.098 5 848 Carpets Tripolitania 53 90 200 81 Cyrenaica -0 Im9 Total 53 200 81 Scrap Metal Tripolitania (Ferrous) 387, 829 23,726 7,351,316 119,894 Cyrenaica (Ferrous) 15,8708744 328.764 " (Non-ferrous) 1,500, io 909533 " (Ferrous) 36.271,625 A49,906 To tal 16,258,573 352,490, 45.123,041 660,333 Leather Manufactures Tripolitania Cyrenaica 214 159 Total 214 159

TOAL GOODS ADMITTED TO PREFERENTIAL DUTY Tripolitania 90,156 168,212 Cyrenaica 333,496 54l1 TOTAL 4239652 710,203 L/111 Page 7

GOODS EXPORTED FROM LIBYA TO ITALY Goode admitted into Italy at normal rates of duty Period January to June 1952 and January to June 1953 Jan, to June 1953 Jan to June 1952 Description of Goods Kgms LLib. Kgms LLib.

Fresh Meat - Tripolitania 22.330 133 Cyrenaica v Total 22< 330 133 Cheese Tripolitania 1,500 450 Cyrenaica . Total 1,500 450 Live Plants Tripolitania 1 600 100 Cyrenaica Total 1,600 100 Fresh Fruits Tripolitania 340 8 8,500 250 Cyrenaica 8 8,- Total 340 8 8"500 250 Wine Tripolitania 2,000 64 Cyrenaica Total 2 000 64 Fresh Vegetables Tripolitania 19,190 600 Cyrenaica Total 19, 190 600 Dried Skins (of sheep and goats) Tripolitania 351,501 55,409 109,398 18,3s92 Cyrenaica 192.233 32,153 152,632 28,339 Total 5433734 87,562 262,030 46,731 Sansa Oil Tripolitania 62, 060 7 ,424 135,534 15,366 Cyrenaica Total 62,060 7,424 135,534 15,366 L/111 Page 8 Jan. to June 1953 Jan. to June 1952 Description of Goods Kgms LLib. LLib. Goat Hair Tripolitania, 13 266 2,436 892 148 Cyrenaica 4,194 747 5.889 1,208 Total 17.460 3,183 6.781 1,356 Orange Peel Tripolitania 2,997 221 Cyrenaica Total 2.997 221 Unwashed Wool Tripolitania 46,510 7,033 10,895 1,638 Cyrenaica 363,174 67, Q91 260,050 37.237 Total 409.684 74.124 270.945 38,875 Camel Hair Tripolitania 653 98 l Cyrenaica e Total 653 98 1 Raw Sponges Tripolitania 3,891 8 256 2,080 61,945 Cyrenaica 943 1i394 98 220 Total 4.834 9 *650 2.178 7,165 Woollen and Cotton Rage 220 Tripolitania 82,834 6,671 34,000 11709 Cyrenaica Total 82,834 6.671, 34.000 1,709 Tartar Tripolitania 6,000 806 Cyrenaica Total 6.000 806 Bitumen Tripolitania 180>o000 900 Cyrenacoa Total 180. QOO 900

Tripolitaila 50,000 7,000 e Cyrenaica Total 50.000 7.000 L/111 Page 9 Jan, to June 1953 Jan. to June 1952 DescriptionofGoods Kgms LLib, Kgms LLib. Plants of Alpha Grass Tripolitania 100 50 Cyrenaica Total 100 50 Italian Hay (imported in 1952 and re-exported in 1953) Tripolitania Cyrenaica 50,000 535 Total 50,000 535 Automobiles Tripolitania 19, e54 6?430 47,460 12,119 Cyrenaica 11,717 5,857 Total 19,054 6,430 59,177 17,976 Manufactures of Common Metal Tripolitania 5,000 1,117 Cyrenaica 1. Total 5,000 1.117 Agricultural Machines and Parts Tripolitania 800 100 Cyrenaica Total 800 100 Machinery Various and Parts

Tripolitania 32,680 3,272 te Cyrenaica .2 Total 32,680 3, 272 Motor Cycles Tripolitania 520 101 400 110 Cyrenaica Total 520 101 400 110 Electrical Apparatus Tripolitania 1, 000 1,100 Cyrenaica Total 1,000 1..1.00 Rubber Manufactures Tripolitania 1,030 100 765 230 Cyrenaica Total 1,030 100 765 230 L/111 Page 10

Jan. to June 1953 Jan. to June 1952 Description of Goods Kgms LLib. Kgms LLib. Manufactures of Wood Tripolitania 160 192 Cyreanica Total 160 192 Films Tripolitania 5,232 7, 930 7,876 Cyrenaica Total 5 202 7.930 7,876 Books Tripolitania 59 35 Cyrenaica Total 59 35 Musical Instruments Tripolitania 150 100 Cyrenaica Total 150 100 Tools Tripolitania Cyrenaica 24,900 1,743 Total 24, 900 1,743 Tyres Tripolitania Cyrenaica 1 680 700 Total 1,680 700 500 Spare Parts Tripolitania Cyrenaica . 10,000 500 Total 10,000 500

TOTAL GOODS SUBJCT TO NOMRAL DUTIES Tripolitania 113,957 68,973 Cyrenaica 101,920 75,804

TOTAL 215 , 877 144,777