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25366--31-1-906

"The Egyptian Question," by M. Charles de Freycinet, Member of the French Academy, published last week by MM. Calmann Levy, is a work which might have been entitled "How the French lost Egypt." M. de Freycinet, the French statesman who has held office more frequently and longer than any of his contemporaries, is particularly well fitted to speak with authority on this question. In his capacity as Foreign Minister he was called upon to study it deeply and in July, 1882, he resigned office, after the Chamber by an overwhelming majority had rejected his proposal to vote a credit of 9,410,000 francs destined to enable France to defend the Suez Canal, and to insure uninterrupted and safe navigation through that international waterway while the English were occupied in putting down Arabi Pasha's insurrection.

At that time Prince Bismarck was still all-powerful at Berlin, and the decision of the French Parliament was based on the apprehension that even limited intervention might lead farther and entail European complications, for which the young Republic was ill prepared. When questioned by the committee of the House, M. de Freycinet himself refused to assume the responsibility of counselling intervention in Egypt. That vote sounded the knell of the Anglo-French condominium, but M. de Freycinet does not pretend that the British Government sought that result.

On the contrary, the ex-Minister is at considerable pains to explain in his book that the British Government was very desirous to obtain the co-operation of France. However, he adds, "At the present time, when France is re-generated, when she has reconstituted her army and her finances, when she has acquired a powerful ally on the Continent, and when she possesses precious friendships ; to-day, when the dominating and threatening policy of M. de Bismarck has descended with him into the tomb, and when the hegemony of Germany has given way before a just equilibrium of force, we have difficulty in understanding the susceptibilities of public opinion in 1882."

M. de Freycinet then explains in the clearest possible language the various phases of the Egyptian Question after the crushing of Arabi's rebellion down to the signature of the recent Anglo-French accord, signed on April 8, 1904. The object he had in view in writing this most able work, which constitutes the history of the Egyptin Question from the French point of view from Bonaparte's expedition to Egypt to the present moment, is to demonstrate that if the condominium of England and France is dead and can never be resurrected, nothing has happened and nothing has been done by France or Europe, to counter on Great Britain's permanent possession of Egypt.

"It is," he says, "the invariable principle of Europe that Egypt must not belong to any of the great Powers. Its possession insures such advantages that the equilibrium of the States is disturbed by it. In the hands of one single Power Egypt constitutes a threat for the interests of all others." M. de Freycinet explains the attitude of Germany in the Egyptian Question by showing it could have been inspired by no other reason than the desire to perpetuate a cause of misunderstanding between France and Great Britain. However that may be, it is certain that from 1882 until last year it was France which constantly headed the opposition to the continued presence of the English in Egypt, and sought by all means to hamper the action of Great Britain in the valley of the Nile, to say nothing of the attempt made by Major, now Colonel, Marchand to enter the country so to say bt the back door. M. de Freycinet is evidently proud that France has thus "raised her voice in favor of right. She alone has prevented a sort of prescription being established, and has not permitted the silence of all to be interpreted as a definitive acquiescence."

Towards the end of this interesting volume, M. de Freycinet speaks out very clearly. He affirms that "if the Powers have done nothing to interrupt the English occupation of Egypt, they have, fortunately, done nothing to confirm it. The presence of the British troops is not more legitimate to-day than it was twenty years ago. The 'exceptional and transitory' position of Great Britain (to employ the words used by Lord Salisbury) is from the point of view of right in no way modified. The convention of April 8, 1904, has changed nothing. France has prohibited herself from taking an initiative, and that is all. To-day England is no more than she was yesterday either the sovereign of Egypt or its protector, or invested with a mandate from the Sultan. The treaties of 1856 and 1878 are still in force. Europe can raise the question and demand a solution in conformity with right."

M. de Freycinet does not know what Europe will do, but he says that, notwithstanding contrary appearances, he has "no doubt that at some moment in history Egypt will cease to be under British domination. Egypt will either revert to the Sultan or be neutralised with a guarantee of the European concert." The French ex-Prime Minister cannot say how that will be accomplished, but he is inclined to think that it may be with the consent of Great Britain. It would not, however, he thinks, be likely that

Travellers who use the Brindisi route to and from Egypt, will regret to learn that the Italian Government at the eleventh hour has decided not to avail itself of the option of taking over the Southern railways. It will be remembered that this option remained open till May 20. Much disappointment will be felt in the South of Italy, but the decision is financially prudent. It was understood that this route would be greatly improved by the Government.

The Southern railways –– the geographical term is somewhat of a misnomer, for a portion of the lines are in Northern Italy –– consist of the long piece of rail from Bologna, down the Adriatic coast to Otranto, 550 miles in length, of which 475 miles are traversed by the weekly Indian mail and are therefore of special interest to British travellers ; of the line across the peninsula from Foggia to Naples, 123 miles of railway, comprising between them 669 miles. This makes a total mileage of 1,342 miles for the whole of the Southern lines.

Herrr Bassermann, the National Liberal leader, was the chief speaker at the Party's Congress which was held last week in Dresden. His references to foreign politics were characterised by a strong anti-English bias. He accused England of seeking to sow dissension between Germany and France in Morocco, and observed that it was the chief aim of British policy to incite European Powers to quarrel among themselves. In Eastern Asia, England, said Herr Bassermann, was behaving in a very curious manner as the ally of Japan. The Fleet was winding its way through French ports, and England contented herself with paper protests. The argument employed by Herr Bassermann that England is playing false to France in Morocco, and to Japan in the Far East, may now be encountered every day in the German Press, which is doing its best to get up the cry of "Perfide Albion" in Paris.

Professor Mendeleyeff, the world-renowned Russian chemist, has declared to a member of the staff of the "Petersburgskaya Gazeta" that the political movement in the Russian seminaries is being fostered and fed by Germany : "Such a movement can be only to Germany's advantage, for the whole of Germany understands very well that Russia is the only impediment in the way of Germany's further development. It is to Germany's interest to weaken Russia by internal disorders. If German diplomacy is apparently on Russia's side, then that may be construed as a sign that German diplomacy is aware that Russia will emerge from its difficulties with comparatively little damage. This is my personal opinion with regard to Germany, and you can print it, if you wish ; it is all the same to me." Professor Mendeleyeff occupies such a high position in scientific circles at home and abroad that his remarks are all the more striking.

Largest 1st class and most comfortable Hotel in Alexandria. Facing the sea. Central position. Under English management.

1-1-904

In the Chancery Division on Thursday last, Mr. Justice Joyce had before the action of Brown v. Haig and Oxley, by which the plaintiff asked to have an account taken of certain mining concessions granted by the Egyptian Government. –– Mr. Warmington, K.C., and Mr. Terrell appeared for the plaintiff ; Mr. Neville, K.C., and Mr. Rankin for Mr. Oxley; and Mr. Younger, K.C., and Mr. Ashton for Mr. Haig.

Mr. Warmington, in opening the case, said the parties were jointly entitled to the concessions. The matter was before his Lordship on a motion for the appointment of a receiver and manager, and the defendants said that accounts had been offered and given. As a matter of fact, no account had been given except was contained on a sheet of note paper, and that was no account at all. In the result, under pressure it was consented that an account should be taken by a gentleman to be named by the paries, and, failing agreement, by an accountant to be named by the Court. A gentleman had been appointed in his Lordship's chambers, and his report showed that no account had been delivered, because there were no materials for it. The report also showed that certain of the transactions justified not only the action being brought, but that the suspicion which the plaintiff had that everything had not been quite straight.

His Lordship : Of course, I am not going to take an account in Court.

Mr. Warmington : No, but my client is entitled to have an account. I should like to facilitate matters, and if the defendants will adopt the account of the gentleman appointed in your Lordship's chambers and will file the ordinary affidavit, I shall know how to deal with it.

His Lordship: I should have thought that all the questions would arise on that account.

Mr. Warmington agreed. The history of the case began at the beginning of 1901, but before that time the plaintiff and Mr. Oxley had for two or three years been associated together for the purpose of obtaining concessions for mining property in Australia and Egypt. Matters between plaintiff and the Egyptian Government proceeded extraordinarily well, and the former obtained seven concessions. The Government, however, thought that was too many to be vested in one set of person, and four concessions were relinquished. Each summer the plaintiff came to England to communicate with Oxley, and they arranged for the dispostion of the concessions for their joint benefit. At the end of 1900, it occurred to the plaintiff and Oxley, who was a company promoter and financier, that it would be well for a third person to go to Egypt to obtain some additional concessions, including those which plaintiff had been obliged to surrender. Mr. Haig was the person selected to perform that office, and he came to Egypt in January, 1901. One of the companies controlled by Oxley was the British and Colonial Agency, Ltd., and he thought he could utilise the company for the purpose of the concessions obtained by Haig. The name of the company was then changed to the Egyptian Sudan Minerals, Ltd. Mr. Haig was a gentleman of education and a collegiate friend of some of the officials, and in March the Government granted him a concession. The plaintiff desired that the concession should go into the name of Haig, it being part of the arrangement that plaintiff's and Oxley's names should not be mentioned to the Government.

His Lordship asked what was the dispute between the parties.

Mr. Warmington said the concession having been granted, parts of it were sold in consideration of £6,000 in one case, £500 in another, and 40,000 shares in a company were to be allotted to Haig for a third part. The purchasing company was Egyptian Sudan Minerals, Ltd., and in order to show that there were no profits in connections with the shares, Haig set up that the shares were subject to an option which he gave to Oxley of purchasing them in blocks of 4,000 at 4s. each for the first block, rising to 12s. per share for the last block. That was a transaction which had no legal validity. Defendants suggested that the plaintiff should be content with the 4s. and not with the price that was actually obtained for the shares from outsiders. They also suggested that certain advertising expenses should be borne by the plaintiff, although the expenses were incurred after the sale.

Mr. Younger said the plaintiff was entitled as and when the concessions had been sold and realised to receive one-third of the net profits. Until the transaction was concluded the plaintiff had no rights at all except to see the accounts relating to the transactions and have an account such as had been given to him. His client's position was that there had been no profits realised, but at present a large loss had been sustained. Under these circumstances he contended that the action was misconceived and premature.

Mr. Neville said the important question was whether this was a mere partnership at will or not. If by giving the plaintiff one-third of the profits was to give him a right to sell, the result would be disastrous. His contention was that it was a joint adventure, and the plaintiff's rights did not arise until the conclusion of the adventure.

Mr. Warmington contended that the plaintiff was entitled to participate in the management, and he was entitled to an account, profits or no profits. He, of course, did not ask for profits until there were some, and if a deficit were shown plaintiff would contribute to it.

After some discussion, the parties agreed, without prejudice to any question, the plaintiff admitting he was bound to contribute one equal third of the expenses, that an account should be taken by an official referee of all dealings and transactions between the plaintiff and defendants in connection with the shares mentioned in a letter of the 13th September 1901. Further consideration and costs were reserved, the official referee's account to be conclusive with regard to the figures.

Established 1825.

Accumulated Funds £11,300,000

Bonus Year, 1905.

The next division of profits will be made amongst participating Policies in existence at 15th November 1905.

All With Profit Policies effected on or before that date will be entitled to share in the Division.

The Company have already declared Bonus Additions to Policies to the amount of more than Seven Million Sterling.

Head Office for Egypt: Sharia Kasr-el-Nil, Cairo.

B. Nathan & Cl, Chief Agents for Alexandria.

A. V. Thomson, Secretary for Egypt.

When Lord Cromer's report was published the Sudan accounts for 1904 had not yet been closed. His Lordship approximately estimated the anticipated results as giving L.E. 576,000 revenue and L.E. 629,000 expediture, thus leaving a deficit of L.E. 53,000. The accounts have now been closed, and the total revenue is L.E. 576,013 and expenditure 628,931. The original estimates placed the deficit at L.E. 194,000, revenue L.E. 469,000, and expenditure L.E. 663,000, so the financial result, of the past year must be considered extremely gratifying.

The result, however, is in reality not quite so favorable as would appear at first sight, from a consideration of the figures given above.

In the first place, the revenue of 1904 has been swollen, to the extent of L.E. 41,000, by certain extraordinary receipts, which will not recur in future years. Under these circumstances, the true revenue of the year may be stated as amounting to L.E. 535,000, or L.E. 66,000 in excess of the original estimate.

In the second place, it will be observed that the expenditure (L.E. 621,931), stated in the accounts, is less by L.E. 34,000 than the original estimate (L.E. 663,000). This diminution in expenditure will, of course, go to swell the surplus, and consequently, to increase the Reserve Fund of the Sudan Government. On the other hand, inasmuch as about L.E. 14,000 of this apparent economy does not represent real savings, but is due to the fact that certain liabilities, incurred in 1904, have not yet been met, it is clear that when those liabilities are met, the Reserve Fund will, pro tanto, be reduced.

When, however, due allowance has been made for these considerations, it may confidently be asserted that the financial position of the Sudan shows a very marked improvement as compared to previous years.

A consideration of the following figures, which give the amount of revenue estimated as well as that realised, since the re-occupation of the country took place, will show that the improvement has been progressive. The first figures for each year represent the estimated, the second the realised revenue :

1898 L.E. 8,000 L.E. 35,000 1899 " 51,000 " 126,000 1900 " 158,000 " 156,000 1901 " 187,000 " 242,000 1902 " 224,000 " 270,000 1903 " 428,000 " 462,000 1904 " 469,000 " 576,000

When, shortly after Lord Kitchener's great victory, the revenue of the Sudan was estimated at the modest figure of L.E. 8,000, few persons could have anticipated that, before six years were over, it would have risen to well over half a million. This result has, however, been achieved. Morever, it has been attained concurrently with the adoption of a system of very light taxation. The reports of all the local officials go to show that throughout the country the taxes are now collected with ease.

In Lord Cromer's chapter on Sudan finance there is a passage on the principle of taxation in Oriental countries, which deserves quotation here.

"In deciding what general policy is to be adopted in countries such as Egypt and the Sudan, low taxation should be the keystone of the political arch. It brings general tranquillity in its train. It is an essential preliminary to steady and continuous moral and material improement. It allows, either at once or eventually, of the adoption, without serious danger to the State, of a policy in other matters which is in general conformity with the liberal views and traditions of the British Government and of the British nation. Expenditure on objects, however desirable in themselves, should, I venture to think, be rejected, or at all events postponed, rather than that the principle of maintainin taxes at a low figure should be in any degree infringed. That is the policy which, for more than twenty years, has been adopted in Egypt and for some seven years in the Sudan. I have pointed out in this and in previous years, that Egypt has now passed out of the first stage of development. The maintenance of taxation at a low figure for some considerable period has produced its natural effect. The revenue has largely developed. A commencement is now being made with the execution of the second portion of the programme, namely, that which involves an increase of expenditure in order to carry out various reforms and improvements. It cannot be said that the Sudan has as yet emerged from the first stage, but the foundations of a system of government suitable of the requirements of the country have been laid."

Weissenstein Castle 341 ft. First class private hotel near Windisch-Matrei ; Station, Lienz (reached from Venice or Trieste). Good mountaineering centre. Tennis. Fishing, best June and September. Prospectuses and Photographs, "Egyptian Gazette" office, Cairo.

25365-48°-48

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ATHLETIC GOODS: A VARIED STOCK, INCLUDING Slazenger's Doherty "E.G.M." Demon. AND Ayre's Central Strung Racquets.

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Owing to the increased business in this Department a new Showroom has been fitted up where better attention can be given to Customers.

CLOTHS: The largest Stock in Egypt of Cloths of the best British Manufacture : TROPICAL TWEEDS, FLANNELS, DRILLS, & c., & c

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GENTS' OUTFITTING: The newest Shades in Crepe de Chene Ties. Cellular, Oxford, Zephyr Shirts and Pyjamas in great variety.

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