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EGYPT 695 payment of the interest being devoted to redemption of the Germany, and Russia—are represented. The functions of capital. A brief period of prosperity followed the passing the Caisse, originally limited to receiving certain assigned of the law of liquidation, but the Arabist rebellion and the revenues on behalf of the bondholders, have since that events which culminated in the British occupation of date become much more important. The exact extent of British •Esypt in September 1882, immediately followed their powers is not capable of accurate definition, nor control. by t*16 disastrous reverses in the Sudan, again would it be possible to lay down limits which would meet plunged the country into financial embarrass- with general acceptance from all parties. The widest ment. A new loan was absolutely necessary to settle interpretation of their functions that has been put forward the Alexandria indemnities and to pay off the liabilities would give them the right to control, on behalf of the arising out of the rebellion and the Sudan war. More- Powers of Europe, the due execution by the Egyptian over, the proportion of the revenue assigned to the Government of almost all the complicated international Government by the law of liquidation was altogether in- agreements regarding the finances of the country. In virtue sufficient for the expenses of administration, so that while of the law of liquidation, their assent, as well as that of the sinking fund was in full operation, the Treasury was the Sultan, is necessary before any new loan can be issued. compelled to borrow on short loans at high rates of interest No portion of the general reserve fund can be used in order to meet its ordinary expenditure. At the initiative without their sanction. All questions are decided by the of the British Government, negotiations were begun with vote of the majority of the members, with the exception of the Great Powers and Turkey, which, after prolonged dis- grants for extraordinary military expenditure, which, by cussions, resulted in the London convention of March 1885. an arrangement concluded with the Powers in November That convention was the last settlement of the liabilities 1899, require unanimity. All assigned revenues are paid Egypt, and, with a few subsequent modifications of directly to the Caisse de la Dette by the collecting departdetail, its dispositions form the organic law under which ments without passing through the Ministry of Finance. Egyptian finance is administered at the present day. After the Caisse de la Dette come the Railway Board It will be convenient here to state, as briefly as possible, and the Commissions of the Daira and Domains, each the exact position of the Egyptian Government in respect consisting of three members—an Englishman, a FrenchFinancial -ts ^nanc^ autonomy, as established by the man, and an Egyptian. The former administers the status. various treaties, conventions, and agreements railways, telegraphs, and port of Alexandria, paying the in force. By the Imperial firman of June net receipts, after deduction of the expenses, fixed for the 1873, the Khedive of Egypt obtained, subject to the pay- railways at 45 per cent, of the gross receipts, into the ment of an annual tribute to Turkey of £696,000, com- Caisse. The Daira and Domains Commissions administer plete fiscal autonomy, including the right to conclude the large estates that are mortgaged to the holders of those commercial conventions and to raise loans. The latter loans. Out of the net profits they pay the annual interest privilege was taken away by the firman appointing charge, and any surplus and the produce of the sales of Tewfik Pasha, and since that time Egypt cannot raise land are employed in paying off the capital. Should the a loan without the previous consent of the Sultan. The net profits in any year be insufficient to meet the coupon, international obligations of Turkey remained, of course, the Egyptian Government is bound to make good the binding upon. Egypt, and amongst them the capitula- difference. Since their creation both these administrations tions, by which certain privileges are conferred upon showed an annual deficit up to 1890. From that date, foreigners resident in the Ottoman dominions. From with the exception of the year 1895, the Daira has yielded a financial point of view the most important of these a surplus; but the Domains continued to be administered privileges—based to a certain extent on the text of the at a considerable loss, which formerly varied between original treaties, but still more on an abusive extension £50,000 and £200,000 a year, down to 1900, in which in practice which had grown up in Egypt—is immunity year there was a surplus for the first time. from all direct taxation without the assent of their reIt is now possible to explain the working of the finanspective governments. The only exception, resulting from cial system prescribed by the London convention. The the Ottoman law under which foreigners are allowed to principle of dividing the revenues of the country acquire and hold real property, is in the case of the land- between the Ministry of Finance and the Caisse Workingtax. At the present time all taxes that were formerly de la Dette was maintained. The revenue assigned to paid by natives and not by foreigners have been abolished the service of the debt remained as before, so that the in Egypt, but the immunity described above constitutes security of the bondholders was in no way diminished. a most serious obstacle to all schemes for redistributing At the same time it was recognized that the non-assigned the burden of taxation in a more equitable manner. The revenue was insufficient to meet the expenses of administrasupervision exercised over the finances of Egypt by the tion. A certain scale of administrative expenditure was, French and British controllers prior to the British occu- therefore, authorized, and the Caisse, after paying in full pation .was abolished in 1883, and replaced by that of the interest on the debt, had to make good out of the a British official called the Financial Adviser. This balance of the assigned revenue any deficit between the functionary is appointed by the Khedive on the recom- authorized expenditure and the non-assigned revenue. If, mendation of the British Government, and has a seat pn after making good any such deficit, a surplus still rethe council of ministers, but without a vote. It has been mained, this surplus was divided equally between the laid down by the British Government that “ no financial Caisse and the Government, the share of tlie former being decision should be taken without his consent,” an interpre- applied to the reduction of the debt, while the Governtation which has never been questioned by the Egyptian ment was free to dispose of its share as it thought best. Government. In addition to the control of the Financial By an arrangement with the Powers, concluded in 1888, Adviser, there exist in Egypt certain commissions or the Caisse’s half-share in the surplus is now paid into a boards, known as. “ Mixed Administrations,” appointed in reserve fund, and the sinking fund is suspended until virtue of international agreements, and having relations of that fund amounts to two millions. The authorized exa more or less ill-defined, but quasi-independent character penditure for administrative purposes was originally fixed with the Egyptian ministry of finance. First and fore- at £E.5,237,000,1 but by subsequent agreement with the most is the Caisse de la Dette, on which, since 1885, the Powers certain other items have been added, so that in six Great Powers—France, Austria, Italy, Great Britain, 1 The Egyptian pound = £1, 0s. 6d.