and the supreme military and civil command is vested in a governor-general, who is appointed by the khedive on the recommendation The Anglo-Egyptian Sudan. of the British government, and who cannot be removed without the British government’s consent. Neither consular jurisdiction, nor that of the mixed tribunals, was permitted, the Sudan being made absolutely free of the international fetters which bound Egypt. Sir Reginald Wingate, the sirdar of the Egyptian army (in which post he succeeded Lord Kitchener at the close of 1899) was named governor-general, and in the work of regeneration of the country, the officials, British, Egyptian and Sudanese, had the cordial co-operation of the majority of the inhabitants.
The growing prosperity of Egypt in the opening years of the 20th century was very marked, and is reflected in the annual reports on the country supplied to the British foreign office by Lord Cromer. Thus, in 1901 he was able to Egypt’s growing prosperity. declare that “the foundations on which the well-being and material prosperity of a civilized community should rest have been laid. . . . The institution of slavery is virtually defunct. The corvée has been practically abolished. Law and order everywhere reign supreme. The curbash is no longer employed as an instrument of government.” So little danger to internal peace was apprehended that during this year Arabi Pasha, who had been in exile in Ceylon since 1882, was permitted to return to Egypt. This happy condition had been brought about largely as the result of giving fiscal reform, accompanied by substantial relief to the taxpayers, the first place in the government’s programme, and with the abolition of octroi duties in 1902 disappeared the last of the main defects in the fiscal system as existing at the time of the British occupation. In these conditions the machinery of government, despite its many imperfections and anomalies, worked smoothly. Land increased in value as irrigation schemes were completed, and European capital was increasingly eager to find employment in the country. The bulk of the fellahin enjoyed a material prosperity to which they had been strangers for centuries. In the midst of this return of plenty Lord Cromer (in his report for 1903) sounded a note of warning:—
As regards moral progress (he wrote), all that can be said is that it must necessarily be slower than advance in a material direction. I hope and believe, however, that some progress is being made. In any case the machinery which will admit of progress has been created. The schoolmaster is abroad. . . . Every possible facility and every encouragement are afforded for the Egyptians to advance along the path of moral improvement. More than this no government can do. It remains for the Egyptians to take advantage of the opportunities offered to them.”
The facilities enjoyed by the British and Egyptian governments for securing the material if not the moral development of Egypt were greatly enlarged in 1904, as the result of the understanding then come to between France The Anglo-French understanding of 1904. and Great Britain. The natural irritation in France arising from the British occupation of the Nile valley, and the non-fulfilment of the pledge to withdraw the British garrison from Egypt, which had grown less acute with the passing of years, flamed out afresh at the time of the Fashoda crisis, while the Anglo-Boer war of 1899-1902 led to another access of irritation against England. During 1903 a great change came over public opinion on both sides of the Channel, with the result that the statesmen of both countries were enabled to complete negotiations settling many points in dispute between the two nations. On the 8th of April 1904 a declaration was signed by the representatives of France and Great Britain which virtually recognized the dominant position of France in Morocco and of Britain in Egypt. The chief provisions concerning Egypt were:—
“His Britannic Majesty’s government declare that they have no intention of altering the political status of Egypt.
“The government of the French Republic, for their part, declare that they will not obstruct the action of Great Britain in that country by asking that a limit of time be fixed for the British occupation, or in any other manner.
“His Britannic Majesty’s government, for their part, will respect the rights which France, in virtue of treaties, conventions and usage, enjoys in Egypt.”
Similar declarations and engagements were made by Germany, Austria and Italy. Annexed to the Anglo-French agreement was the text of a proposed khedivial decree altering the relations between Egypt and the foreign bondholders. With the consent of the powers this decree (promulgated on the 28th of November 1904) came into operation on the 1st of January 1905. The combined effect of the declaration and the khedivial decree was great. The first-named put an end to an anomalous situation and gave a practically valid sanction to the presence of Britain in Egypt, removing all ground for the reproach that Great Britain was not respecting its international obligations. In effect it was a European recognition that Britain was the protecting power in Egypt. It put a period to a question which had long embittered the relations between England and France, and locally it caused the cessation of the systematic opposition of the French agents in Cairo to everything tending to strengthen the British position—however beneficial to Egypt the particular scheme opposed might be. Scarcely less important were the results of the khedivial decree. By it Egypt achieved in effect financial independence. The power of the Caisse de la Dette, which had virtually controlled the execution of the international agreements concerning the finances, was swept away, together with almost all the other financial fetters binding Egypt. The Railway and Port of Alexandria Board ceased to exist. For the first time since 1875 Egypt was free to control her own revenue. In return she pledged the greater part of the land tax to the service of the debt. The functions of the Caisse were restricted to the receipt of the funds necessary for this service. It was entirely deprived of its former power to interfere in the machinery of government. Moreover, some £10,000,000, being accumulated surpluses in the hands of the Caisse after meeting the charges of the debt, were handed over to the Egyptian treasury. The Egyptian government was henceforth free to take full advantage of the financial prosperity of the country.
In one respect the Anglo-French agreement made no alteration—it left untouched the extra-territoriality enjoyed by Europeans in Egypt in virtue of the treaties with Turkey, i.e. the system of Capitulations. One of the anomalies Evils of the Capitulations. under that system had, it is true, been got rid of, for, as has been stated, consular jurisdiction in civil matters had been replaced in 1876 by that of the Mixed Tribunals. In criminal cases, however, foreign consuls still exercised jurisdiction, but the main evil of the Capitulations régime was the absence of any proper machinery for enacting laws applicable to the whole of the inhabitants of Egypt. No change could be made in any law applicable to Europeans without the unanimous consent of fifteen foreign powers—a state of affairs wholly incompatible with the condition of Egypt in the 20th century, “an oriental country which has assimilated a very considerable portion of European civilization and which is mainly governed by European methods.” It was, however, far easier to acknowledge that the Capitulations régime was defective and had outlived its time than to devise a remedy and get all the nations interested to accept it. The solution favoured by Lord Cromer (vide Blue-books, Egypt No. 1 (1906), pp. 1-8, and Egypt No. 1 (1907), pp. 10-26) was the creation of a council—distinct from the existing native legislative council and assembly—composed of Europeans, which should have the power to pass legislation which when promulgated by the Egyptian government, with the assent of the British government, would bind all foreigners resident in Egypt. Every reservation for the benefit of British subjects should enure for the benefit of subjects of other powers. The jurisdiction exercised by consuls in civil and criminal affairs Lord Cromer proposed should cease pari passu with the provision by the Egyptian government, under the powers conferred by the treaty required to set up the new council, of courts having competence to deal with such matters, various safeguards being introduced to prevent injustice in criminal cases. As to civil cases the proposal was to make permanent the Mixed Tribunals, hitherto appointed for quinquennial periods (so that if not reappointed consular jurisdiction in civil cases would revive).
