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supplied to the Abyssinians from French and Russian sources complicated the situation.

The Triple Alliance was concerned. The third partner had been weakened.

The balance might be restored if Great Britain would make some open sign of sympathy.

 

Moreover, the expectations of the Egyptian military authorities were soon fulfilled. The Dervishes threatened Kassala as soon as the news of Adowa reached them, and indeed there were signs of increased activity in Omdurman itself. In these circumstances the British Government determined to assist Italy by making a demonstration on the Wady Halfa frontier.

They turned to Egypt. It had always been recognised that the recovery of the lost provinces was a natural and legitimate aspiration. ‘The doubtful point was to decide the time when the military and financial resources of the country were sufficiently developed to justify an assumption of the offensive.’ [LORD CROMER’S REPORTS: EGYPT, No. 2, 1896.] From a purely Egyptian point of view the best possible moment had not yet arrived.

A few more years of recuperation were needed. The country would fight the Soudan campaigns more easily if first refreshed by the great reservoirs which were projected. For more than two years both projects had been pressed upon the Government of his Highness the Khedive—or, to write definitely, upon Lord Cromer. At regular intervals Sir Herbert Kitchener and Sir William Garstin would successively visit the British Agency (it would be treason to call it ‘Government House’)—the one to urge the case for a war, the other to plead for a reservoir. The reservoir had won. Only a few weeks before the advance to Dongola was ordered Garstin met Kitchener returning from the Agency. The engineer inquired the result of the General’s interview. ‘I’m beaten,’ said Kitchener abruptly; ‘you’ve got your dam’—and Garstin went on his way rejoicing.

 

The decision of the British Government came therefore as a complete surprise to the Cairene authorities. The season of the year was unfavourable to military operations. The hot weather was at hand. The Nile was low. Lord Cromer’s report, which had been published in the early days of March, had in no way foreshadowed the event. The frontier was tranquil.

With the exception of a small raid on a village in the Wady Halfa district and an insignificant incursion into the Tokar Delta the Dervish forces had during the year maintained ‘a strictly defensive attitude.’ [EGYPT, No. 1, 1896.] Lord Cromer, however, realised that while the case for the reservoirs would always claim attention, the reconquest of the Soudan might not receive the support of a Liberal Government. The increasing possibility of French intrigues upon the Upper Nile had also to be considered. All politics are series of compromises and bargains, and while the historian may easily mark what would have been the best possible moment for any great undertaking, a good moment must content the administrator. Those who guarded the interests of Egypt could hardly consent to an empty demonstration on the Wady Halfa frontier at her expense, and the original intention of the British Government was at once extended to the reconquest of the Dongola province—a definite and justifiable enterprise which must in any case be the first step towards the recovery of the Soudan.

 

 

It will be convenient, before embarking upon the actual chronicle of the military operations, to explain how the money was obtained to pay for the war. I desire to avoid the intricate though fascinating tangles of Egyptian finance. Yet even when the subject is treated in the most general way the difficulties which harass and impede the British administrators and insult the sovereign power of Egypt—the mischievous interference of a vindictive nation, the galling and almost intolerable financial fetters in which a prosperous country is bound—may arouse in the sympathetic reader a flush of annoyance, or at any rate a smile of pitying wonder.

 

About half the revenue of Egypt is devoted to the development and government of the country, and the other half to the payment of the interest on the debt and other external charges; and, with a view to preventing in the future the extravagance of the past, the London Convention in 1885 prescribed that the annual expenditure of Egypt shall not exceed a certain sum. When the expenditure exceeds this amount, for every pound that is spent on the government or development of Egypt another pound must be paid to the Commissioners of the Debt; so that, after the limit is reached, for every pound that is required to promote Egyptian interests two pounds must be raised by taxation from an already heavily taxed community. But the working of this law was found to be so severe that, like all laws which exceed the human conception of justice, it has been somewhat modified. By an arrangement which was effected in 1888, the Caisse de la Dette are empowered, instead of devoting their surplus pound to the sinking fund, to pay it into a general reserve fund, from which the Commissioners may make grants to meet ‘extraordinary expenses’; those expenses, that is to say, which may be considered ‘once for all’(capital) expenditure and not ordinary annual charges.

 

The Dongola expedition was begun, as has been said, without reference to the immediate internal condition of Egypt. The moment was a good one, but not the best. It was obviously impossible for Egypt to provide for the extraordinary expenses of the military operations out of revenue. The Ministry of Finance therefore appealed to the Caisse de la Dette for a grant from the general reserve fund. Here was an obvious case of ‘extraordinary expenses.’ The Egyptian Government asked for �E500,000.

 

The Caisse met in council. Six Commissioners—representing England, France, Russia, Germany, Austria, and Italy—duly discussed the application. Four Commissioners considered that the grant should be made.

Two Commissioners, those representing France and Russia, voted against it.

The majority decided. The grant was made. The money was handed to the Egyptian Government and devoted to the prosecution of the war.

 

Egypt as a sovereign power had already humbly begged to be allowed to devote part of the surplus of her own revenues to her own objects.

A greater humiliation remained. The Commissioners of France and Russia, who had been out-voted, brought an action against their colleagues on the grounds that the grant was ultra vires; and against the Egyptian Government for the return of the money thus wrongly obtained.

Other actions were brought at French instigation by various people purporting to represent the bondholders, who declared that their interests were threatened. The case was tried before the Mixed Tribunals, an institution which exists in Egypt superior to and independent of the sovereign rights of that country.

 

On the part of the Egyptian Government and the four Commissioners it was contended that the Mixed Tribunals had no competency to try the case; that the attacking parties had no right of action; that the Egyptian Government had, in applying, done all that the law of liquidation required; and that the act of sovereignty was complete as soon as the Caisse, which was the legal representative of the bondholding interest, had pronounced its decision.

 

The argument was a strong one; but had it been ten times as strong, the result would have been the same. The Mixed Tribunals, an international institution, delivered its judgment on strictly political grounds, the judges taking their orders from the different countries they represented. It was solemnly pronounced that war expenses were not ‘extraordinary expenses.’ The proximate destruction of the Khalifa’s power was treated quite as a matter of everyday occurrence. A state of war was apparently regarded as usual in Egypt. On this wise and sensible ground the Egyptian Government were condemned to pay back �E500,000, together with interest and costs. After a momentary hesitation as to whether the hour had not come to join issue on the whole subject of the financial restrictions of Egypt, it was decided to bow to this iniquitous decision.

The money had now to be refunded. It had already been spent. More than that, other sums were needed for the carrying on of the war. The army was by then occupying Dongola, and was in actual expectation of a Dervish counter-attack, and it was evident that the military operations could not be suspended or arrested. It was impossible to stop; yet without money it seemed impossible to go on; and, besides, it appeared that Egypt would be unable to repay the �E500,000 which she had been granted, and of which she was now deprived.

 

Such was the painful and difficult situation which a friendly nation, in the utmost exercise of her wit and the extreme compass of her legal rights, had succeeded in producing in a country for whose welfare she had always professed an exaggerated regard. Such was the effect of French diplomacy. But there is a Nemesis that waits on international malpractices, however cunning. Now, as before and since, the very astuteness of the French Ministers and agents was to strike a terrible blow at French interests and French influence in Egypt. At this period France still exercised a considerable force on Egyptian politics. One Egyptian party, the weaker, but still by no means insignificant, looked towards her for support. The news of the French success cheered their hearts and raised their spirits. Orientals appreciate results. The result was a distinct reverse to the British. The conclusion to the native mind was obvious.

Great Britain had been weighed in the European balances and found wanting.

In all Eastern countries a large proportion of the population fluctuates uncertainly, eager only to be on the winning side. All this volume of agitation and opinion began to glide and flow towards the stronger Power, and when the Egyptian Government found their appeal from the decision of the Court of First Instance of the Mixed Tribunals to the International Court of Appeal at Alexandria quashed, and the original decision confirmed, the defeat of the British was no less complete than the triumph of the French.

 

But meanwhile the Consul-General acted. On the 2nd of December he telegraphed to Lord Salisbury, reporting the judgment of the Court of Appeal and asking that he might be ‘authorised to state directly that her Majesty’s Government will be prepared to advance the money on conditions to be hereafter arranged.’ The reply was prompt, though guarded. ‘You are authorised,’ said Lord Salisbury, ‘by the Chancellor of the Exchequer to state that though of course the primary liability for the payment of the �E500,000 rests with the Egyptian Government, her Majesty’s Government will hold themselves prepared to advance, on conditions to be decided hereafter, such a sum as they feel satisfied that the Egyptian Treasury is powerless to provide.’ [The original �500,000 was afterwards increased to �800,000; which sum was paid by the British Exchequer to the Egyptian Government, at first as a loan, and later as a gift.] This obvious development does not seem to have been foreseen by the French diplomatists, and when, on the 3rd of December, it was rumoured in Cairo that Great Britain was prepared to pay the money, a great feeling of astonishment and of uncertainty was created. But the chances of the French interference proving effective still seemed good. It was believed that the English Government would not be in a position to make an advance to the Egyptian Government until funds had been voted by Parliament for the purpose. It was also thought that Egypt would be utterly unable to find the money immediately. In the meantime the position was humiliating. France conceived herself mistress of the situation. A complete disillusionment, however, awaited the French Government. The taxes in Egypt, as in other countries, are not collected evenly over the whole year. During some months there is a large cash balance in the Exchequer. In others the money drains in slowly. It happened

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