Egyptian liabilities, the resources available to meet those liabilities, and the system under which the Government had heretofore been conducted. Ad consilium de republicâ dandum, caput est, nosse rempublicam. This elementary truth had been too much forgotten in dealing with Egyptian affairs. Now that the true facts of the situation were more accurately known, although mistakes might be made in subsidiary matters, it was no longer possible to draw erroneous conclusions as to the main

questions at issue. The Egyptian Treasury was insolvent. The system of government had been as bad as possible. Both the people of Egypt and the creditors of the Egyptian Government were alike interested in the adoption of an improved system. It was futile to attempt to impose fresh burthens on the country. On the contrary, certain

taxes should be abolished.

Even if the Commissioners had done nothing more than bring home the main facts of the situation to all concerned, they would have deserved well both of the Egyptian people and of all who were interested in the prosperity of Egypt.

The report of the Commission of Inquiry was signed on April 8. On the previous day, the Khedive dismissed his European Ministers, and charged Chérif Pasha with the formation of a new Ministry. The situation was thus completely changed. All hopes of introducing a reformed system of administration had for the time to be abandoned; and, without reforms, the scheme proposed by the Commission of Inquiry was incapable of execution. The Commissioners, therefore, tendered their resignations to the Khedive. They were, of course, accepted.

1

The counter project which was prepared by the Khedive in concert with the Chamber of Notables

1 Vide ante, p. 102.

was published on April 23. Little need be said of this plan. It was open to the most serious objections.

In the first place, it was impossible of execution. The revenue for 1879 was estimated at £9,837,000. This was nearly £800,000 in excess of the estimate made by the Commissioners of Inquiry, which was £9,067,000. Even this latter estimate erred on the side of optimism, and it was certain that the collection of such a sum as that named in the scheme of the Chamber of Notables was impossible without resorting to the oppressive methods of the past, and without again sacrificing the future to the present.

In the second place, although both the Khedive and his advisers had rejected the idea of national bankruptcy as dishonourable, the settlement which they proposed did, as a matter of fact, constitute an act of bankruptcy. The interest on the Unified Debt was to be reduced from 6 to 5 per cent, although hopes were held out that payment of interest at a higher rate would be resumed at some later period. In fact, as the Commissioners of Inquiry pointed out in a letter addressed to the Khedive, the scheme "protestait contre toute déclaration de faillite, mais en consacrait la réalité."

These objections would alone have been fatal to the scheme. Moreover, there was one very significant omission in the project. There could be no hope for reforms in Egypt unless a fixed sum were assigned for the private expenditure of the Khedive and his family. The scheme of the Chamber of Notables made no mention of any Civil List. In fact, the basis of the plan was that the Khedive should regain his personal power, and that the upper classes should preserve their privileges intact.

The effect of the change of policy inaugurated

by the Khedive made itself immediately felt. On April 19, Sir Frank Lascelles reported that "Shahin Pasha, the Minister of War, had gone to Behera, probably for the purpose of collecting money; his former position as Inspector-General in Lower Egypt having secured for him an unenviable notoriety as one of the harshest and most successful tax-gatherers in the country."

A few days later, the British Vice-Consul at Zagazig wrote: "You ask how is the new régime working? Worse than before. Three-fourths of the taxes and one-half of the Moukábala are now exacted by means of the usual oppressions. The fellah, having no crop of cotton or grain to realise, is obliged to have recourse to usurers for money, which he gets at some 4 to 5 per cent per month. He has no alternative if he would avoid the 'courbash.' The Zawats' (aristocracy), meanwhile, only pay the Mal' (land-tax proper) at their pleasure, and, therefore, see everything couleur de rose. Omar Pasha Lutfi, InspectorGeneral of Lower Egypt, has been here of late, and has given stringent orders for the collection of money by all possible means."

In a word, all the abuses of the old régime returned immediately the new Ministry came into power.

In the meanwhile, the Commissioners of the Debt were considering what action they should take. Under the changed circumstances of the situation, there was but one course left for them to pursue. They commenced a lawsuit against the Government in the Mixed Tribunals.

For some while previous to these events, I had been wishing to leave Egypt. I had, however, become interested in the work. So long as there appeared any hope of placing Egyptian financial affairs on a sound footing, I hesitated whether to

go or to remain. All hopes of this sort seemed, however, to be dashed to the ground. Under the circumstances, I did not care to remain any longer in the country. I therefore resigned my appointment and left Egypt on May 24, 1879. From that date until I returned as Controller-General after the abdication of Ismail Pasha, I cannot speak from personal experience of what occurred in Egypt. Sir Auckland Colvin was appointed to be Commissioner of the Debt in my place.

CHAPTER VIII

THE FALL OF ISMAIL PASHA

APRIL-JUNE 1879

Embarrassment of the European Powers-Turkey-England-France -Italy-Russia-Germany and Austria-The French and British Governments demand the reinstatement of the European Ministers-The Khedive declines to reinstate them-Question of reestablishing the Control-The German Government protest against the proceedings of the Khedive-The British and French Governments advise abdication-The Khedive appeals to the SultanThe Sultan deposes the Khedive-Inauguration of Prince Tewfik -Ismail Pasha leaves Egypt-Remarks on his reign.

THE action taken by the Khedive in dismissing his European Ministers embarrassed the various Powers who were interested in the affairs of Egypt. Moreover, all the most important Governments in Europe claimed a right to make their voices heard in any general settlement of Egyptian questions. The local difficulties of the situation were great. They were rendered greater by the fact that no serious step could be taken without producing a clash of conflicting international interests.

The Sultan was concerned lest his suzerain rights should be endangered. Turkish policy was, as usual, vacillating and inconsistent. Should not the Khedive be deposed? Nay, did not an opportunity now present itself to realise the pernicious dream which had haunted the minds of Turkish statesmen since the days when Mehemet Ali won by the power of the sword a quasi-independent