bondholders were inclined to be far less reasonable than the English, neither did there apparently exist any body of public opinion in France, which could act as a check on any extreme views advanced by the foreign creditors of Egypt.

Both M. de Blignières and myself saw from an early date that the financial arrangements of 1876 would have to be modified, but we also held that an arbitrary reduction in the rate of interest would be unjust to the bondholders and of doubtful benefit to the taxpayers. Before we could approve of any fresh financial combination, it was evident that more light would have to be thrown on the situation. Under these circumstances, the idea of holding a General Inquiry into the financial condition of the country, which was originated about this time, took root, and obtained some support amongst the more moderate of those who were interested in the solvency of the Egyptian Government. "But," Lord Vivian reported, "the bondholders ask that any inquiry into the financial position should be impartial and exhaustive, leaving nothing behind it uninvestigated in the shape of debt, nor any pretext for further resettlement. On these conditions, they are prepared to make such a fair sacrifice of interest as may be found absolutely necessary."

It would have been wise on the part of the Khedive if, at this moment, he had on his own initiative invited a full inquiry into the financial situation of Egypt. But he was not disposed to do so. He hoped to obtain an arbitrary reduction in the rate of interest on the debt without any inquiry. Eventually, the Commissioners of the Debt took the initiative. In a letter addressed to the Minister of Finance on January 9, 1878, they dwelt on the gravity of the situation and suggested an inquiry. The Khedive replied at length, declin

ing to institute a general inquiry into the financial situation, but stating that he was willing to appoint a Commission whose sole duty it would be to ascertain the true amount of the Egyptian revenue. The Commissioners of the Debt were invited to take part in this inquiry.

A partial inquiry of this sort would have been worse than useless. The Commissioners of the Debt, therefore, addressed a further letter to the Egyptian Government, in which they again urged the necessity of a full inquiry, and declined to take part in any inquiry of a partial nature.

No attention was paid to this remonstrance, and, on January 27, 1878, a Khedivial Decree was issued instituting a Commission of Inquiry into the revenue only. A further Decree was to be issued nominating the Commissioners.

The issue of this Decree caused an explosion of European public opinion in Egypt. A meeting was held at Alexandria at which the more extreme of those who advocated the claims of the foreign creditors expressed themselves in terms condemnatory of any inquiry, as they considered that the Egyptian Government could meet all its engagements. A petition was sent to the representatives of the Powers, but it was couched in language so insulting to the Egyptian Government that Lord Vivian refused to notice it.

The Khedive did not, however, immediately abandon the idea of instituting a partial inquiry. The main difficulty was to find any qualified persons to conduct it. General (then Colonel) Gordon was at that time returning from the Soudan. The idea occurred to the Khedive that his services might be utilised. His high character, the weight that his name carried with the British public, and his known sympathy with the sufferings of the Egyptian people, all pointed him out as

a useful instrument; whilst his inexperience in financial questions would, it was thought, lead him to accept the accuracy of any facts and figures which were laid before him by the Egyptian Government. Lord Vivian pointed out that "Colonel Gordon, with all his eminent qualities and abilities, had no experience in finance." The Khedive, however, held to his idea. General Gordon was invited to conduct a financial inquiry, and was at first inclined to accept the invitation. M. de Lesseps was also asked to serve on the proposed Commission, and intimated his willingness to do so. The negotiation with General Gordon, however, soon broke down, and he left Egypt.1

It is unnecessary to describe in detail the tedious negotiations which then ensued. The British Government consistently supported "a full and complete inquiry" into the financial situation as the only possible solution of existing difficulties. The German, Austrian, and Italian Governments also supported the proposal. So also did the French Government, although as it became daily more and more clear that the result of any impartial inquiry must be that the rate of interest on the debt would be reduced, their support was rather lukewarm.

After long and wearisome discussions over the scope of the inquiry and the persons to whom it should be entrusted, the Khedive eventually yielded. On March 15, I was able to write to Lord Goschen : At last I really think that, after five months of incessant labour, the inquiry is settled." On

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1 These proceedings have formed the subject of much misrepresentation. The account of them given in Sir William Butler's Charles George Gordon (pp. 138-139) is incorrect. The sole reason why the negotiation broke down was that it was evident to every one concerned, including General Gordon himself, that he was not fitted to conduct any financial inquiry. He wrote at the time that he felt sure that he was only to be a figurehead."-Colonel Gordon in Central Africa,

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p. 310.

April 4, 1878, a Khedivial Decree was issued appointing a Commission with the most extended powers of inquiry. M. Ferdinand de Lesseps lent the weight of his name to the Commission. He was appointed President, but did not take any active part in the proceedings, and left Egypt on May 9. Sir Rivers Wilson and Riaz Pasha were named Vice-Presidents. The four Commissioners of the Debt were appointed members. A capable Frenchman, M. Liron d'Airolles, was chosen to act as Secretary.

Some opposition had been offered, especially by the French, to the nomination of any Egyptian to be a member of the Commission. It was feared, with some reason, that no Egyptian would be sufficiently independent to express views which might be displeasing to the Khedive. These fears proved groundless. At a time when any show of independent opinion on the part of an Egyptian was accompanied with a good deal of personal risk, Riaz Pasha displayed a high degree of moral courage. His presence on the Commission was of material help to his colleagues, whose confidence he fully deserved and obtained.

CHAPTER IV

THE NUBAR-WILSON MINISTRY

APRIL 1878-NOVEMBER 1878

Difficulty of the task assigned to the Commission of Inquiry-Chérif Pasha declines to appear as a witness-Defects in the system of administration-The floating debt-The Rouznameh Loan-Loans from the Wakf and Beit-el-Mal Administrations-Ultimate reforms proposed by the Commissioners-Immediate reforms necessaryEnforcement of Ministerial responsibility-The Khedive's Civil List Cession to the State of the Khedivial properties - The Khedive accepts the proposals of the Commissioners-Nubar Pasha forms a Ministry-Sir Rivers Wilson and M. de Blignières named Ministers Loan authorised on the security of the Khedivial

estates.

THE Egyptian Verres1 was at last, therefore, obliged to render an account of his stewardship to a body of men who were determined to arrive at the truth. The Commissioners, however, soon found that, in the confusion which then existed, the mere discovery of the accurate facts of the situation was a task which presented no inconsiderable difficulties, whilst the abuses which had grown up in the Egyptian administrative system were so general and so deep-rooted as to defy the application of any remedy which would be effectual

1 There is certainly a somewhat close analogy between Verres and Ismail Pasha; e.g. "Hoc praetore Siculi neque suas leges, neque nostra senatusconsulta, neque communia jura tenuerunt . . . Nulla res. nisi ad nutum istius judicata est; nulla res tam patria cujusquam atque avita fuit quae non ab eo imperio istius abjudicaretur. Innumerabiles pecuniae ex aratorum bonis novo nefarioque instituto coactae," etc. Cicero, In C. Verrem, Actio Prima, iv. et v.