VZCZCXYZ0000
RR RUEHWEB

DE RUEHEG #1208 1800905
ZNR UUUUU ZZH
R 290905Z JUN 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 2994
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS CAIRO 001208 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD EAGR PGOV PREL EG RS
SUBJECT:  EGYPT'S ECONOMY:  JUNE 29 PRESS ROUND-UP 
 
¶1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
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Egypt, Russia Agree to Expand Economic Ties 
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¶2. (U) As part of an Egypt-Russia strategic pact agreed upon last 
week with Russian President Dmitry Medvedev, Egyptian President 
Hosni Mubarak voiced support for boosting commercial ties and 
bilateral trade between the two countries. Egypt is already Russia's 
largest trading partner in Africa, with bilateral trade reaching 
US$4.1 billion in 2008. The Egyptian Minister of Trade and Industry, 
Rachid Mohamed Rachid, stated that Egypt is also interested in 
benefiting from Russian engineering expertise and expanding 
cooperation in the renewable energy, water, agricultural, and 
construction sectors. (CI-Capital, 6/24/2009) 
 
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Egypt Bolsters Wheat Import Controls 
------------------------------------ 
 
¶3. (U) Minister of Trade and Industry Rachid announced new import 
control measures aimed at improving inspection and quality control 
of imported wheat. The measures include doubling the financial 
sureties deposited by international cargo inspection firms and 
imposing penalties on those firms if they fail to ensure adherence 
to Egyptian wheat standards. Penalized firms would stand to lose the 
deposited surety and be barred from doing business with Egypt's 
wheat-buying authority, the General Authority for Supply Commodities 
(GASC). However, the usual process of tendering for wheat by the 
GASC would continue unchanged, Rachid said. Incoming wheat 
shipments, especially from Russia, have recently been found to 
include impurities and insects, which prompted the Government of 
Egypt (GOE) to return the wheat and to tighten regulations. (Ahram, 
6/24/2009) 
 
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Cairo Signs LE3.3 Billion in New Metro Line Contracts 
--------------------------------------------- -------- 
 
¶4. (U) The GOE finalized contracts worth a reported LE3.3 billion 
(US$589 million) with three consortia of French and Egyptian 
companies to construct the second phase of a new metro line for 
Greater Cairo.  Minister of Transportation Mohamed Mansour said that 
the construction on the second phase is expected to begin July 1. 
When completed in 2013, the new line, Cairo's third, will stretch 
33km and cover 29 stations from Heliopolis and Cairo International 
Airport in northeast Cairo to the Mohandiseen and Imbaba 
neighborhoods in the northwest part of the city. (All Newspapers, 
6/21/2009) 
 
 
SCOBEY