VZCZCXYZ0011
RR RUEHWEB

DE RUEHEG #1957 2871412
ZNR UUUUU ZZH
R 141412Z OCT 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 3884
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS CAIRO 001957 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD EAGR EPET PGOV EG
SUBJECT: EGYPT'S ECONOMY: OCTOBER 14 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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High Court Considers Case on Gas Exports to Israel 
--------------------------------------------- ----- 
 
¶2. (U) Egypt's Supreme Administrative Court began hearing arguments 
in a case on natural gas exports to Israel. Retired Ambassador 
Ibrahim Youssri, who heads a group called the Popular Campaign to 
Stop Gas Exports to Israel, is asking the court to overturn a lower 
court ruling that allowed gas exports to Israel to proceed. During 
the session, the judge asked government lawyers to present all of 
the original documents related to the case, including the contract 
with East Mediterranean Gas (EMG). In addition, the judge asked 
Ambassador Youssri to specify whether his complaint centers on the 
allegedly below-market prices of the exports, or on the principle 
that gas should not be exported to Israel at all.  The case will 
resume hearings on November 7(Al Shorouk, 10/4/2009). 
 
------------------------------------- 
Inflation Rises to 10.7% in September 
------------------------------------- 
 
¶3. (U) According to the data released by the government statistics 
agency, the Central Agency for Public Mobilization and Statistics 
(CAPMAS), annual urban headline inflation increased to 10.7% in 
September 2009, from 9% in August 2009. The overall rise in 
inflation was largely driven by an annualized 17.4% increase in food 
prices, owing to increased consumption during the month of Ramadan 
(Al Alam Al Youm, 10/11/2009). 
 
--------------------------------------------- -- 
Egypt Threatens to Regulate the Sugar Industry 
--------------------------------------------- -- 
 
¶4. (U) The Ministry of Trade and Industry is expected to issue a 
decree in the coming week to regulate the sugar industry, following 
the unprecedented rise in local prices. Sources at the ministry 
accused traders of storing large quantities of sugar to sell later 
at higher prices. Accordingly, the ministry is considering issuing a 
decree to prevent sugar companies from supplying traders with 
quantities exceeding those which traders can sell, to prevent 
stockpiling and market manipulation. The decree also aims at 
increasing the government's supervisory authority in the trading and 
distribution of sugar in local markets. The threat of greater 
regulation follows the GOE's suspension of tariffs on imported sugar 
this summer, a move also intended to increase local supply (Al Masry 
Al Youm, 10/4/2009). 
 
SCOBEY