It has been said that for the present Egypt will continue her annual grant to the Soudan of £E390,000 a year. But she will also be called upon to find some large additional sums. The Soudan requires capital, but has no credit of her own on which to borrow. The British taxpayer ought not to be called upon, even if he had not borne his share already, since it is not his interests, but those of Egypt, which are primarily concerned. But Egypt herself is not in a position, owing to international complications, to contract new loans, nor is it at all desirable to impose additional taxation for the purpose. Private enterprise, even if it was possible to employ it, would in the end be too expensive. But the problem is not insoluble, though difficult. Lord Cromer in his last report gives a most admirable summary of the position: ‘I hope and believe that, although the difficulties are considerable, they will not prove insurmountable. A hopeful feature of the future is to be found in the fact, on which I have dwelt at some length in my Egyptian Report, that the programme of fiscal reform in Egypt is now completed. It cannot be doubted that the people of Egypt are now very lightly taxed. Strongly as I should object to any increase of Egyptian taxation for Soudanese purposes, I can see no objection whatever to maintaining such taxes as at present exist, partly with a view to providing the capital necessary for the improvement of the Soudan. Indeed, far from there being any objection, I believe the adoption of such a course to be strictly in accordance with Egyptian interests; for, until capital is spent, the Egyptian Treasury cannot hope that any considerable reduction in the present Soudan deficit will be possible. I am, of course, aware that the purely Egyptian requirements, such as improved justice and police, to which allusion is made in my Egyptian Report, must, in this connection, take precedence of the necessities of the Soudan, great though these latter be. I am, however, not without hope that, if due care and deliberation be exercised, if the projects on which capital is spent be chosen after a thorough examination of their merits and practicability, and if everything in the nature of undue haste and precipitation be avoided, money in fairly adequate quantities may eventually be found both for the improvement of the Egyptian administrative services and for the development of the Soudan. ‘There can be no question as to the direction in which capital expenditure is most required. As I have said in my Egyptian Report, the construction of the Suakin-Berber Railway is absolutely essential to the well-being of the Soudan. I need only add that all the testimony which I received during my recent visit to the Soudan strongly confirmed me in the opinion which I had previously held on this subject.’