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the Act of 1870 had been framed upon | Majesty's Government to appoint a

fair and just principles.

Question put.

Commission to deal with the Egyptian Debt had not been carried out. The general feeling of the country, if he

The House divided:-Ayes 119; Noes (Sir George Campbell) apprehended it 46: Majority 73.

Bill read the third time, and passed.

SUPPLY.-COMMITTEE. Order for Committee read. Motion made, and Question proposed, "That Mr. Speaker do now leave the Chair."

EGYPT-MR. CAVE'S MISSIONEGYPTIAN FINANCE.-RESOLUTION.

SIR GEORGE CAMPBELL rose to call attention to Mr. Cave's Mission to Egypt, and to move,

"That it is inexpedient that the British Government should take any part to facilitate loan transactions to the Khedive of Egypt."

He said that the Motion was now somewhat out of date, because the evils which it was intended to guard against had not come off in a direct form. He had kept the Motion on the Paper to bring it forward that day, rather with the view of giving the right hon. Gentleman the Member for Shoreham an opportunity of giving some information to the House on his important Mission, than with any other object. The Session bade fair to end as it began, with discussions regarding the Suez Canal and the affairs of Egypt. He would not refer to the Suez Canal, except to say it was evident that the great and glorious results which the Press and the public seemed to anticipate from that purchase had not been realized. He was bound to say also that the evils, the risk of which had been incurred had not so far developed themselves, but that, as often happened in such cases, neither the good nor the evil was so great as had been anticipated. He would confine his observations to the Mission of the right hon. Gentleman and the state of Egyptian finances, of which his Report was the subject. At one time there was very great reason to fear that Her Majesty's Government might meddle with the finances of Egypt, and he, for one, thought it undesirable and inexpedient to do so; but he was very glad to find that the intention of Her

were

rightly, was that too large a political character had been given to the right hon. Gentleman's Mission, and that too large a staff accompanied him to do what might very well have been done by a clever and experienced financial clerk. He went to ascertain the exact state of the finances of Egypt, and not to produce any great political or financial effect upon that country. He hoped the right hon. Gentleman would take the opportunity of giving the House some information with regard to the Report which had been presented to Parliament, and especially in regard to the sources of the information contained in the Report, and to the state of the Egyptian Revenue, especially the effect of the imposition of the Moukabala and the probable effect of the cessation of the Moukabala. He should be glad to hear the right hon. Gentleman justify his sanguine view of Egyptian finances, and to know that the reports of these finances founded on clear and undoubted evidence. Until he (Sir George Campbell) heard full explanations on those points he must continue to regard the right hon. Gentleman's Report as too sanguine. If it should prove that the right hon. Gentleman had been too sanguine, that would be, he apprehended, a great evil, because the result had been to bolster up unduly the credit of Egypt-a result which the Khedive, a shrewd and sagacious man, no doubt desired. At first the Khedive did not like the Mission, but finding it was inevitable, he determined to utilize it to the utmost for the benefit of Egyptian credit, to supply it with facts of a sanguine and roseate hue, and thus to favour a financial scheme, which, if it had succeeded, would have induced the people of these countries to lend their moneys. He (Sir George Campbell) was glad that scheme for the conversion of the Egyptian Debt had not succeeded; for he was very apprehensive that if it had succeeded, all the people who lent their money would have said, and said with some justice, that they were induced to do so by the Report of the right hon. Gentleman the Member for Shoreham. He had expressed in the Resolution on the Paper, that it was

better they should not interfere to try and patch up Egyptian finance, for he did not believe in patching up the finances of foreign countries for the benefit of the widow, and the orphan, and the poor clergyman, and the half-pay officer. He was aware that it was argued that for the benefit of the poor people who held these old Egyptian loans, these foreign loans should be patched up. He pitied those poor people very much; but if we were to adopt this mode of assisting them, a great many other people might similarly get into difficulties. He believed the first loss was the best, and that it was not wise to prop up the credit of any foreign State that might be in a rotten or tottering condition. He thought, too, that the very sanguine reports of the Revenues of Egypt would lead to great harm; and it might lead the Khedive to think it necessary to justify the estimate by screwing more money out of those under his control. He found that the land revenue of Egypt was already ten times the highest revenue which we obtained from the people of India. It was above the average rent per acre of the land of England, and, if additional taxation was imposed upon the down-trodden cultivators of Egypt, the result would be one we should not be justified in aiding and abetting. He found from the figures that the land revenue of Egypt was £4,300,000, and that on account of the operation of what was called the Moukabala that revenue had been reduced by about £1,600,000. He also found that about £1,500,000 of the Moukabala had been treated as an asset, whereas it was in reality only a capitalization of the Revenue. There would be, according to his figures, a loss of £3,200,000 of the revenue on account of the cessation of the Moukabala. He wanted to know where these figures came from, and on what it was that the right hon. Gentleman based his sanguine estimate of the finances of Egypt on the cessation of the Moukabala payments? If a new land tax was, as he gathered, to be imposed in substitution for the Moukabala, great injustice was likely to be done. He would be glad if the right hon. Member for Shoreham removed that impression. There were other items of revenue of which he should like explanations. In other parts of Europe an octroi was supposed to be a local tax which could not legitimately be

taken as a source of general revenue, and if the estimate of the net profit of the Egyptian railways was correct, they must be the most profitable railways in the world. He had the greatest doubts of the possibility of, and therefore of the expediency of attempting to, veneer these old Oriental Governments with the gloss of modern civilization. They had a strength and vigour of their own; but his experience was that the result of any attempt to civilize and modernize them was to destroy their old vitality without imparting a new one. This was more specially the case when you put them into the hands of City financiers and tried to vitalize them with money from the City; there could not be a more speedy, more effectual road to ruin for these States than their putting themselves into the hands of persons in the City. Whereas the Predecessors of the Khedive had executed considerable works of public importance, and yet had incurred only a small Debt, the impression derived from the Papers was that the Khedive had incurred large debts and done little work with the money. We had not only aided him in great financial schemes and industrial enterprizes, but our money had also aided and abetted him in great political projects. He was an exceedingly ambitious man, and he had conceived the project of establishing a great Empire in Africa, which he thought would be better in the hands of still more civilized Powers. As the result of the loan from this country, he had established a large Army, which had not only been employed for great conquest or attempted conquest in Abyssinia, but 15,000 or 20,000 black troops in Egypt had been sent to assist in crushing the Christians of Turkey, a course of proceeding which to him (Sir George Campbell) seemed to be a serious thing to be done with the money of this country. Further, a Mahomedan Power must be a very great difficulty in the way of our efforts to put down the Slave Trade, and the evidence was strong that in the Red Sea, under the Turkish and Egyptian flags, a very large slave trade was carried on. Considering the doubtful character of the enterprizes which the Ruler of Egypt undertook, at all events, there was every reason why at present the Rulers of this country should not bolster up the credit of the Potentate of Egypt; that he should settle as best he

could with the financiers with whom he | at the time. No doubt, such a Mission might deal, without being patted on the to an independent Power was perhaps back in official Reports to our own Go- unprecedented, and it was a very delicate vernment, or having his credit bolstered and difficult duty to carry out our inup by any other indirect means. Having structions so as to avoid giving offence made these observations, perhaps he on the one hand and to attain our object would best consult the opinion of the of obtaining accurate information on the House by not moving his Resolution, other. I hope we have performed that and by simply calling his attention to duty with tolerable success. I am sure the subject, in the hope that he would the Khedive will admit that we were not elicit some statement from the right wanting in the respect due to his high hon. Gentleman the Member for position; and I must say that His Shoreham. Highness treated us with every con

MR. STEPHEN CAVE, who was re-sideration, and seemed most desirous of ceived with cheers, said: I rise in accordance with the hon. Member's invitation, and because I imagine the House will expect me to say a few words before the Session closes; otherwise I should much prefer remaining silent. I agree with him that his Motion is now somewhat out of date. I feel that the interest which formerly attached to my Mission has well nigh died away, and that the affairs of Egypt have naturally been thrown into the shade by more urgent and important events in the East. I should not, therefore, be justified in repeating what is said in my Report, or detaining the House over the varying fortunes of the Egyptian Mission. My Report has long been before the country. All that we said and did in Egypt, and a good deal more, has been duly chronicled and commented upon. Still less is it my business to defend the policy of sending the Mission to Cairo. That will be done by others. But whatever differences of opinion there may have been in England on that point, I believe there was little doubt in other countries. I believe, moreover, that without it-without the exposure of the perilous state of the finances of Egypt which resulted from our inquiries-her Ruler would, like so many others in similar difficulties, have gone on shutting his eyes to the danger of the course he was pursuing, and the end would have been more hopelessly disastrous than the present crisis. The hon. Member charges me with unduly bolstering up the credit of Egypt. That may be his opinion, but that was not the opinion of the Khedive. He complained that the Mission, far from assisting him to borrow, closed the Money Market against him; and, if that were so, it may turn out that this was the best thing that could have happened, though his difficulties may have been aggravated

giving us all the information we could desire. Whether this information would have been so readily afforded to the "clever clerk" whom the hon. Member would have substituted for my Mission may be doubted. It has been suggested by the hon. Member that all our information was merely second-hand, and that we were obliged to take what was set before us without asking any questions. That, of course, is in the main true, though not entirely so. We did test what we had opportunities of testing; but, of course, we could hardly be expected in two months to unravel the intricacies and audit the accounts-kept in Arabic-of the Finance Minister. We might have been deceived, no doubt. Still, we had this to rely upon, that though we might easily have been deceived, yet that a person who wished to deceive us would hardly have asked for an experienced English financier to remain in his employment for five or ten years, to whom all the accounts of the Government were to be submitted, and by whom the statement furnished to us would, of course, be examined. The result, however, has exceeded my expectations. I fully expected that many errors would be detected and exposed, and was prepared to be satisfied if the truth at length came out amid the conflict of statements. But what has happened? The Report has been before the public for four months. It has been translated into every civilized language, and as far as I know, beyond some very minor details chiefly arising from accidental errors of transcription the detection of which shows the care with which the Report has been scrutinized-it has been accepted as accurate, and has formed the basis of every negotiation which has up to this time been carried on.

The dif

ference between the French computation | rangements may be made in future, I and the figures in my Report, I have am convinced that such a control must already explained, in answer to a Ques- form part of them; and one of the tion in the House, to be due to circum- worst features in the Decrees which have stances which have taken place since my been issued in favour of the French Report was written. I at one time scheme is the absence of any security hoped that the plan indicated in that for the independence and permanence of Report-not of assisting the Khedive to the Control Department. I think I am borrow, as the hon. Member for the Kirk-bound to say a few words, and they caldy Boroughs (Sir George Campbell) imagines, but of preventing his borrowing more- -would have been carried into effect by capitalists in this country. We had good reason for expecting this; but unfortunately our expectations were not realized, and the matter was afterwards complicated by the extreme pretensions of the French holders of Treasury Bonds, to whom the necessities of the Khedive, driven as it were into a corner, obliged him to yield. For this I am in no way responsible. Indeed, I told the Khedive plainly, and placed it on record, that the acceptance of any plan which did not provide for the full payment of his creditors was really an act of bankruptcy, and was incompatible with the expenditure which he was still carrying on. I believed that his liabilities might have been met then. I believe they may be met even now, though of course it is much more difficult. The total indebtedness is far larger than when my Report was written, and the Khedive is most unfortunately again involved, this time probably against his will, and in consequence of the obligations he is under to the Porte, in the waste of war. I am naturally sorry that my own labours did not bear fruit more speedily and more conspicuously, but I hope that they may yet be carried to a successful issue by more fortunate and abler hands. This one merit I may, without presumption, claim for my scheme-namely, that it kept steadily in view the equitable demands of creditors on the one hand, and on the other the relief of the taxpayer-for whom the hon. Member expresses very natural sympathy-from burdens too heavy for him to bear. It was in order to further both these objects that I laid much stress upon a complete control over both the collection and the appropriation of the revenue, to be vested in the Control Department presided over by the financial agent whom the Khedive was anxious to obtain from this country. This is the key of the whole position. Whatever ar

shall be very few, on the character of the Khedive, who has sometimes been spoken of in very hard, and in some instances, I think, very unjustifiable terms by a portion of the public Press. The Khedive has been even compared to the late Sultan, but no two characters could be more unlike. The Sultan's fall was preceded by his abdication of the functions and duties of a Sovereign. His vast expenditure was mainly upon unworthy favourites, upon luxury, and debauchery. The Khedive, on the contrary, is the most intelligent and laborious man in his dominions. In his Cabinet early and late, there is hardly any public business with which he is not familiar. He allows himself scarcely any rest or relaxation. His Highness told me once that nothing was so delightful to him as a few weeks' repose at Minieh amid his private estates, but that he had not been able to go there for three years. Profuse in hospitality, proud of entertaining the princely visitors now not unfrequent in Egypt in a princely way, he is frugal and simple in his personal habits. He is, however, obliged to work with the instruments which custom and tradition have handed down to him, to employ officials whom he cannot trust, and whose object is to enrich themselves as rapidly as possible, and to insure against their uncertain tenure of office by plundering the Exchequer. Consequently he endeavours, as many others have done, to manage everything himself, which Rulers of far greater bodily activity would entirely fail to do; and though his knowledge of detail is extraordinary, it is difficult for him to see what it is everybody's interest to conceal. I was once told in Egypt by an eminent official, that the difficulty of educating Arab children lay in the fact that they had no conscience, their only motives being fear and the hope of gain. Probably in consequence of being aware of something of the same kind in others than children, His Highness is too prone to throw him

self into the arms of hardly more | done very little. In reply to this, I need disinterested foreign advisers who press only allude to the Bahr Ibrahim, a upon him schemes of various kinds, navigable irrigation canal 160 miles some good, some crude and ill-considered, long, fertilizing vast tracts of land. He but mostly involving heavy expenditure, speaks also of the Khedive originating an undue proportion of which goes into sugar cultivation, which, he says, is only the pockets of these advisers, who are successful on virgin soil. But I may reoften identical with or closely allied to mind him that Mohamed Ali originated the contractors who carry out the this cultivation, and that the place where works, and the financiers who find sugar pays perhaps best, is the colony the means. Loans at ruinous rates, of which we have heard so much lately, bonds renewed on terms still more the island of Barbadoes, where the soil ruinous, supplementary contracts in is almost as artificial as in Malta. Still, which, for obvious reasons, the Khedive I agree that the cost of these enterprizes is as much at the mercy of the contractor has been enormous; sugar factories unas the English Post Office used to be in finished, with expensive machinery lying respect of the great steamship companies about; irrigation works, with recent when contracts were to be renewed. All inventions, never completed; experiments these have eaten out the resources of the half tried-these represent a waste of country. The Khedive is of a sanguine capital never to be restored. The great disposition, easily impressed with new body of Europeans resident in the ideas, which uncontrolled power and country think only of getting as much impatience of restraint lead him to as possible out of the general plunder, realize without proper deliberation. and of exempting themselves from the Those around him are afraid to tell him taxation to which they ought to conthe truth. It is most rare for him to tribute. A curious specimen of their find his ideas combated or corrected. character and ideas might be seen in a The answer of his highest Ministers complaint from Alexandria, in The Times is usually, "Arda,"-" As you please." of Wednesday last, that high rates of The customs of the country, polygamy, interest could no longer be obtained; the system of adoption, the palaces and that a contract for a thousand quarters great establishments considered neces- of wheat, which used to change hands sary for the various branches of the ruling 30 times, paying 30 brokerages and family, the practice, as old as ancient employing the staffs of 30 merchants, Egypt, of never repairing or finishing was now made direct by the Government the work of another, all contribute to with one exporter, who paid one brokerthe ruinous expenditure. Even Nature age, and then sent it out of the country. appears to encourage this kind of ex- This was regarded as a sign of degenerate travagance. The slowness of the growth times. The great want, and one we of trees in the North seems to attach have endeavoured to impress upon the people to one locality. There is no Khedive and to some extent to supply, chance of making more than one place is that of an official body of high-class in a lifetime. In Egypt, not only is the Europeans, such, for instance, as our growth of trees extraordinarily rapid, public servants in India-a class which but the acacia and sycamore can be the hon. Member who has just spoken transplanted at almost full size. The knows well-men accustomed to deal avenue to the Gezeerah Palace, which with Native races in outlying Provinces, was not in existence a few years ago, and to conduct affairs in which tact, looks as if it had been planted 50 integrity, and decision are required. years. It is only fair, however, to men- Under such men the railways and Custion that the Khedive is the first of his toms duties would produce far more race who has shown an appreciation of than at present. I have alluded to the the antiquities of his country. In Mo- uncertain tenure of office. There seems, hamed Ali's time, the priceless monu- moreover, to be no system of appointments of the past were used as quarries ment. We do not expect a complicated for his bridges and factories. His system of Civil Service Examinations Highness has collected these objects in like our own; but we might suppose a most valuable museum, freely open to that when a man was found fit for his the inspection of travellers. The hon. post, he would retain it. Far from it: Member talks of the Khedive having Ali Pacha, when at the head of the

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