An amusing instance of the native way of looking at such matters occurred in connection with the making of the Reservoir. A certain sum was allotted for the compensation of those who would be flooded out of house and home. Some of the Assouan people saw their chance. It does not take much to build a native house. In a short time the Government inspectors had the pleasure of being shown a number of brand-new buildings on the foreshore, with the whitewash still wet upon them. Great was the disappointment of these ingenious speculators. In another case a man was building a boat; he was repeatedly warned to move his work, but would not. Only when the water began actually to rise did he become seriously alarmed, and sent down a letter of remonstrance. Again the position was explained to him; but again he advanced his request that the gates might be opened, accompanied with a hint that he might be willing to make some small acknowledgment of his obligation. Realizing at last the futility of his demand, he exclaimed in despair, ‘What is the use of your Dam if you cannot let the water out to save my boat?’ The two great principles of British policy in Egypt have been irrigation and low taxation. Irrigation is the vital necessity to Egypt. Other departments of Government, however urgent their claims might be, have had to wait and to be starved until the reproductive works could be established and set going. Every penny that could be spared had to be cast upon the waters. At the same time we found the people overburdened with taxation on account of the Public Debt, and also bound hand and foot in the meshes of the usurer. We could not, however powerful we might be, hope to hold securely a country with 11,000,000 of population, unless we have something else than mere force to look to. To the Egyptians we are aliens by race and religion, we have no ties of custom or intermarriage; we have nothing but their material interests to appeal to. If we can make them prosperous, if they can save money without fear of confiscation, if we can secure to them the fruits of their labour, we have done a great deal to strengthen the basis of our rule.