EGYPT. 



they disapprove the proposed arrangement. 

 A contract was concluded with the Imperial 

 Ottoman Bank, providing for gradual yearly 

 advances on general revenue not specially set 

 apart with the exclusive object of insuring the 

 future punctual payment of the tribute to the 

 Porte, and generally facilitating the adminis- 

 trative part of the budget. An arrangement 

 amicably settling the claims of the Paris Syn- 

 dicate was concluded in February. An Inter- 

 national Committee of Liquidation was ap- 

 pointed with the concurrence of the great 

 powers, and the assent of the Khedive given 

 in March, for the purpose of effecting by mu- 

 tual concessions a final settlement of the Egyp- 

 tian financial situation binding on all parties. 

 The committee was organized to consist of 

 representatives of the English, French, Italian, 

 Austrian, German, and Egyptian Governments, 

 with Sir Elvers Wilson, English, as President. 

 As defined by a decree of the Khedive, its 

 duty was, after examining the whole financial 

 situation of Egypt, and hearing the observa- 

 tions of the parties interested, to draft a law 

 of liquidation between Egypt and its creditors, 

 and also between the Daira Sanieh and the 

 Daira Khassa and their creditors. The condi- 

 tions of the issue of the domain loan were 

 excluded from its deliberations. The commit- 

 tee was directed to work upon the basis fur- 

 nished by the report of the committee of in- 

 quiry, and to sit for three months after the 

 presentation of its own report in order to 

 watch, in concert with the English and French 

 Comptrollers - General, the execution of the 

 decisions arrived at. The law of liquidation 

 would be binding on all concerned. The sit- 

 tings of the committee would be attended by 

 representatives of the international tribunals. 

 The (Ive Governments represented in the com- 

 mittee having declared their acceptance of the 

 law of liquidation, would collectively request 

 the adhesion of the other powers represented 

 on the international tribunals. The commis- 

 sion completed its labors on the 16th of July, 

 and the law which it had prepared for the 

 liquidation of the Egyptian debt was immedi- 

 ately signed by the Khedive nnd officially pro- 

 mulgated. It consists of ninety-nine articles, 

 and is divided into five sections concerning re- 

 spectively the consolidated debt, the Daira 

 Sanieh, the non-consolidated or floating debt, 

 and the general provisions. The interest on 

 the unified deht was fixed at four per cent., to 

 be paid from the revenues specially set apart 

 for the service of the unified debt namely, 

 the customs revenue and the revenue from the 

 provinces of Menoulieh, Garbieb, Behera, and 

 Siout and the coupon of the unified debt was 

 guaranteed by the Egyptian Government on 

 the general resources of the country. Any 

 surplus from the revenue set apart for the ser- 

 vice of the unified debt was directed to be ap- 

 plied to open-market purchases. The Daira 

 Sanieh was declared to be a state domain un- 

 der the Egyptian Government and the English 



and French Comptrollers-General, the latter 

 officers having their powers extended; and 

 was continued as a five per cent, stock, with a 

 Government guarantee of four per cent. ; and 

 provision was made for the payment of the 

 old claims of the Daira Sanieh against the 

 Egyptian Government and of the next coupon. 

 An indemnity was allowed to the creditors of 

 the Moukabalah tax. The floating debt Avaa 

 allotted thirty to forty per cent, in cash, the 

 remainder in new privileged bonds, and the 

 short loans were directed to be converted into 

 unified stock, about two millions nominal. The 

 privileges of the railway preference loan were 

 maintained as under the Goschen-Joubert de- 

 cree of the 18th of November, 1876. A new 

 issue of 5,744,000 was authorized, to be in all 

 respects identical with the existing preference 

 stock, the interest of which should date from 

 the 15th of April, 1880. The preference stock 

 was i-ecured on the revenues of the railways 

 and telegraphs, and was made also a first 

 charge on the revenues specially set apart for 

 the service of the unified debt, and the revenue 

 of the harbor of Alexandria. The commission 

 had also before it the case of the claim of 

 Halim Pasha, whose pension had been reduced 

 by a decree of the Khedive from 60,000 to 

 15,000 a year. The Pasha's application for a 

 restoration of his full pension was rejected, 

 the decree of the Khedive was confirmed, and 

 the pension was definitely fixed at 15,000. 

 Halim Pasha was, however, admitted as a 

 creditor of the floating delt in the amount of 

 150,000. 



The adhesion of the United States and of 

 Russia was given to the decision of the com- 

 mission when it was made known. 



The annual report of the directors of the 

 Daira Sanieh, published in August, stated that 

 in virtue of the law of liquidation that Remain 

 entered upon a new phase. The European 

 system of public accounts would be introduced 

 in order to facilitate the task of the directors 

 in protecting the interests of the Daira bond- 

 holders. The Daira Sanieh was now for the 

 first time free from debt ; and its revenue un- 

 doubtedly admitted of a considerable increase, 

 which was principally dependent upon the 

 carrying out of administrative reforms. The 

 abolition of the Moukabalah tax, however, in- 

 volved an increase of the taxation payable by 

 the Daira to the amount of 93,000 Egyptian, 

 so that for the future the same revenue would 

 be required to give a return of five per cent, 

 which formerly yielded six per cent. 



The amount encashed for the public debt up 

 to the end of September was 1,320,000 for 

 the unified debt, and 278,000 for the privi- 

 leged debt. According to the statement of the 

 caisse made at that time, the revenues spe- 

 cially set apart for the service of the unified 

 debt would be required to complete the coupon 

 of the preference loan falling due on the 15th 

 of October; but after the payment of the cou- 

 pon of the unified loan on the 1st of Novem- 



