Nr. 8730. GROSSBRITANNIEN. Botsch, in Wien. Min. des Ausw. an den engl. Foreign Office, September 29, 1884. der ägyptischen Regierung*). [B. IV. 39.] Gross Sir, I have received and laid before the Queen your Eycellency's des- Nr. 8730. patch of the 20th instant, reporting your conversation with Count Kálnoky as britannien. to the temporary suspension by the Egyptian Government of the payments to 29.Sept. 1884. the Caisse de la Dette Publique from the revenues of the assigned provinces. Her Majesty's Government have read with regret your Excellency's account of Count Kálnoky's criticisms on the step taken by the Egyptian Government, and on the considerations which you were instructed to place before his Excellency in regard to it. They understand Count Kálnoky to take objection rather to the manner of action than to the measure itself. As regards the latter point, indeed, they do not see, that there are just grounds for serious complaint, nor has it been suggested what practicable alternative lay open to the Egyptian Government. It cannot be denied, that the position is one of grave emergency. It is admitted on all sides, that the first duty of the Khedive and his Ministers in the interests of the country, and equally of its creditors, is to provide for the necessary expenses of administration. A suspension of the sinking fund on the loans was accepted by France, and tacitly acquiesced in by all the Governments represented at the recent Conference as a necessary element of the several schemes for the restoration of the financial equilibrium, and it is to be observed that, while such a suspension doubtless departs from the strict letter of the angagement, the inconvenience of that departure falls in great measure on the Government and the country indebted, as entailing a postponement of the time when they will be freed from the burden of debt. || With regard to the observations made by Count Kálnoky as to the payment of the tribute to the Sultan, which forms only a portion of the charges to be met, it must not be forgotten that a suspension of these payments would be a contravention of the Firman under which the Khedive holds his authority, and that an infringement of the conditions laid down in that instrument might entail complications far more detrimental to Egypt, and to the interests of her creditors, than a temporary cessation of the sinking fund for redemption of debt. || As regards the question of form, it is right to bear in mind the necessity for immediate action. To have obtained the previous consent of all the Powers parties to the Law of Liquidation, or even of the Great Powers, would have entailed much delay. It was not to be expected that all would have given a prompt and ready assent. Count Kálnoky himself gives no assurance as to what other Powers would have done had they *) Durch Circular vom 1. October 1884 wurde diese Depesche allen englischen Legationen bei den am Liquidationsgesetz interessirten Mächten als Richtschnur bei etwaigen Besprechungen mitgetheilt. Anm. d. Red. britannien. Nr. 8730. been consulted. This he could not be called upon to do; but he does not Gross- even say, that Austria would, if previously approached, have given her consent, 29.Sept. 1884. but that if all the other Powers hat agreed he would not himself have been inclined to raise a difficulty. In the meanwhile some action would have become necessary, and to have resorted to the course proposed in the face of objections and hesitations would have been more offensive to the objecting Powers than the mode of procedure actually adopted. || Her Majesty's Government have always been willing and anxious to recognize the interest of Austria-Hungary and of the other Powers in Egypt. They have given proof of that desire on numerous occasions during the recent course of events; but while they recognize the existence of rights, they feel sure that his Excellency will acknowledge that such rights are not separable from obligations with regard to the welfare of that country, and in the peculiar position in which circumstances have placed Great Britain towards Egypt, and in view of the sacrifices and responsibilities which this country has incurred, they think they have some title to expect of the Austro-Hungarian Government, as that of an allied and friendly Power whose objects are in consonance with their own, to assist them in their efforts to place Egypt in a sound political and financial condition. || They trust, that on these grounds Count Kálnoky may find it possible to instruct the Austro-Hungarian Representative in Egypt to give his assistance to Lord Northbrook and Sir E. Baring in the difficult circumstances in which they are called upon to advise the Khedive and the Egyptian Government. I am, &c. Granville. Nr. 8731. britannien. Nr. 8731. GROSSBRITANNIEN. (Extract.) den engl. Min. des Ausw. Die deutsche Regierung beharrt auf ihrem ablehnenden Standpunkt. [B. IV. 52.] (Received October 6.) Berlin, October 4, 1884, I showed Dr. Busch to-day, confidentially, the Memorandum on the preGross- sent financial situation in Egypt, to which frequent reference was made in the 4. Oct. 1884. extract from Lord Northbrook's Report, which I was instructed to communicate to the German Government. || His Excellency read it with attention, and thanked me for allowing him to see it, admitting that the figures contained in it seemed fully to substantiate Lord Northbrook's review of the present financial position of the Egyptian Government. "But," added his Excellency, "all this is quite beside the real and main question on which we unfortunately appear to differ." || It was absolutely necessary, that the Egyptian Government should be restrained from creating so dangerous a precedent, or that an instrument secured by a solemm international agreement should in regard to one of its essential provisions be set aside by the unilateral action of one only of the Governments parties to it. I took this opportunity of urging all the arguments used in britannien. your Lordship's despatsch to Sir A. Paget of the 28th September, inclosed for Nr. 8731. my information and guidance in your Lordship's despatch of the 1st instant. GrossDr. Busch, however, still maintained that none of these arguments appeared 4. Oct. 1884. to him to touch the main point of the question; namely, the danger of the precedent which had been created, a danger not confined to Egypt alone, but affecting the whole question of the peace of the East, which was secured by similar international instruments, and he repeated to me his previous contention (reported in my despatch of the 24th ultimo), that any admissions made in the Conference at London could not be made use of to justify the Egyptian Government in assuming the consent of the Powers to a suspension of the payment of the assigned revenues to the Caisse of the Public Debt, as that Conference had notoriously separated without coming to any agreement whatever in regard to an alteration of the Law of Liquidation. || I then said, that admitting that the protesting Powers were justified in taking every step in their power to safeguard their own rights and those of the bondholders, and to prevent the possibility of the present act of the Egyptian Government serving in the future as a precedent for setting aside other international engagements, I trusted, that the action which they contemplated would not go further, and that Her Majesty's Government might count on allied and friendly Powers, whose objects were in consonance with their own, to assist, and not to thwart them in their efforts to place Egypt in a sound political and financial condition, and to raise no unnecessary difficulties in the way of measures which might seem requisite, in order to escape from the most pressing difficulties of the moment. || In conclusion, I reminded his Excellency that I had been instructed to inform him that Lord Northbrook's Report on the general financial situation in Egypt was expected early in November, and I added, as a purely personal opinion, that it might be premature to draw any conclusions until such further information had been acquired. Nr. 8732. GROSSBRITANNIEN. Min. des Ausw. an den engl. Foreign Office, November 17, 1884, My Lord, In the course of conversation with the French Ambassador this afternoon, I remarked that his Excellency had asked me some days ago whether Her Majesty's Government were going to make any proposals with regard to Egyptian finance. || M. Waddington said that the inquiry had been merely personal to himself. || I said that he had also expressed a hope that we might come to some agreement on the subject, and I added that, as he was aware, we had given proofs before the Conference of being desirous of an arrangement with the French Government, and even of a preliminary arrange Nr. 8732. Grossbritannien. 17. Nov. 1884. britannien. Nr. 8732. ment with France alone, previous to laying proposals before the other Powers. Gross- But the ultimatum presented by his Excellency at the Conference, and the 17. Nov. 1884. manner in which the French Government had received our last proposal, was not encouraging for us to recommence the attempt at such an understanding. M. Waddington said, that he had no instructions from his Government on the subject. || I said I should be glad to learn whether the French Government continued within the same limits and within the same views, or wether we could approach them with a better prospect of success, to do which would be very agreeable to us. I am, &c. Granville. Nr. 8733. Gross 21. Nov.1884. Nr. 8733. My Lord, GROSSBRITANNIEN. Derselbe an denselben. Frankreich wünscht nicht, sich über die engl. Vorschläge im voraus zu verständigen. [B. V. 7.] Foreign Office, November 21, 1884. The French Ambassador called this afternoon and gave me britannien. an answer to the question which I had put to him on the 17 th instant, as to whether his Government would be disposed to enter into preliminary and confidential discussions on the arrangements to be adopted for the settlement of Egyptian finance. || M. Waddington said, that because it was not a political but only a financial question, the French Government dit not wish to come to any preliminary agreement with Her Majesty's Government on the subject, and preferred that our proposals should be communicated to them at the same time as to other Governments. || I am &c. Granville. Nr. 8734. britannien. 24. Nov. 1884. Nr. 8734. GROSSBRITANNIEN. Min. des Ausw. an die engl. Vertreter in Paris, Berlin, Wien, Rom, St.-Petersburg und Konstantinopel. Vorschläge zur Ordnung der ägyptischen Finanzen. [B. V. 11.] Foreign Office, November 24, 1884. My Lord. Sir, I transmit to your Excellency herewith a Memorandum containing the proposals for the settlement of the finances of Egypt, which Her Majesty's Government desire to lay before the Governments of the Great Powers and the Porte for their consideration and concurrence. || Your Excellency will not, however, take any action in regard to the matter until you receive instructions by telegraph *). || I am, &c. Granville. *) Diese Anweisung erfolgte durch Telegramm vom 28. November 1884 mit dem folgenden Zusatze [B. V. 14.]: You will at the same time address a note to his Excellency, stating that the Me Memorandum. Gross Sufficient 3 per Cent. stock, guaranteed by Her Majesty's Government Nr. 8724. to be issued to provide for the floating debt, irrigation, &c., the liquidation britannien. assets going in aid. We assume, that the net amount of stock will not exceed 24. Nov. 1884. 5,000,0001. || 2. The indemnities to be paid in Privileged stock, 1101. stock for 100 l. cash. || 3. The interest on the new loan to be first charge on the Egyptian revenues. || 4. The Daïra and Domains revenues to be paid to the Bank of England, and the interest on the new loan to be primarily deducted from them; the balance to go to the Egyptian Government. || 5. The administration of the Daïra and Domains lands to be in the hands of the Egyptian Government, under the control of the English Government. The loans for which the lands are security to be treated as follows: (1.) The Domain Loan to be added to the Privileged stock. || (2.) The Daïra Loan to be added to the Unified stock. 6. The proceeds of sales of the Daïra and Domains lands intended to be made to the fellaheen as far as possible to form a sinking fund applicable in the first place to the new loan. When all the loan is paid off the further proceeds of these sales to be applied to pay off other stock. All the sinking funds of the existing debt to be suspended. || 7. The second charge on the Egyptian revenues to be the interest on all the existing debts, less 1/2 per cent. in the case of the Unified (and Daïra) stock, and of the Suez Loan. || 8. The third charge to be the administration expenses, including the Moukabala, 150,000 1. These were defined at the Conference as 4,817,000 1., subject to a pro rata modification as the railway receipts augmented. To this must be added 11,000 1., the net cost of the changes recommended by Lord Northbrook, and a sum of 120,000 1. for the English Army of Occupation. The total charge for administration will thus be 4,948,000 1., which must not be exceeded (except on account of railway expenditure as explained above) without the consent of the English Government, so long as the English occupation lasts. 9. The fourth charge to be the deductions, laid down in paragraph 7, from the interest of the loans, and any charge for the Army of Occupation. beyond the 120,000 1. But the total charge for that army must not exceed 293,0001. || 10. If there should not be sufficient balance to provide the fourth charge, rateable deductions to be made from each of its constituent parts. || 11. If there should be a surplus after paying the fourth charge, any deficit in former years on the interest of the various loans to be the first charge on such surplus, and any balance to be equally divided between a sinking fund morandum contains the proposals which Her Majesty's Government recommend, after careful consideration of the interests of all the parties concerned, and that they trust that it will be favourably received by the Government to which you are accredited. Anm. d. Red. |