The reorganization of the gendarmerie and police was at the same time proceeded with. In a despatch, dated the 1st January, 1883, Lord Dufferin said on the subject of the gendarmerie that, "in consequence of the proximity of the desert and the necessity of controlling the wild Arab tribes which infest its borders, it was desirable that this arm of the service should be in a great measure a mounted force, and impressed with a semi-military character. At the same time, for economical and other reasons, it should be also trained to discharge the civil duties of a rural police. Under certain aspects, therefore, it would possess the characteristics and qualifications of mounted infantry, and under others those of simple constabulary." The administration of the gendarmerie, to the number of 4,400 men, was to be placed under the Minister of the Interior, and its chief was to be General Baker, with the title of Inspector-General. Lord Dufferin in the same despatch dealt with the question of the reorganization of the Urban Police, and whilst pointing out the errors committed in the past, showed how they might be avoided in the future. Lord Dufferin next took in hand the question of the reform of Egyptian institutions generally. On the 6th of February, his Lordship made his report in the form of a lengthy despatch to Lord Granville, in which he dealt with the occupation of Egypt, and the responsibilities thereby devolving on England; the establishment of a Legislative Council, and a Chamber of Notables elected by the people; the Tribunals, canalization and irrigation, the cadastral survey of Egypt, the indebtedness of the fellah, the assessment of the land revenue, agricultural taxes, national education and the Soudan, as to which last his Lordship observed that some persons were inclined to advise Egypt to withdraw altogether from the Soudan and her other acquisitions in that region; but she could hardly be expected to acquiesce in such a policy. Possessing the lower ranges of the Nile, she was naturally inclined to claim dominion along its entire course; and when it was remembered that the territories in question, if properly developed, were capable of producing inexhaustible supplies of sugar and cotton, we could not be surprised at her unwillingness to abandon them. Unhappily, Egyptian administration in the Soudan had been almost uniformly unfortunate. The success of the present Mahdi in raising the tribes and in extending his influence over great tracts of country, was a sufficient proof of the Government's inability either to reconcile the inhabitants to its rule, or to maintain order. The consequences had been most disastrous. Within a year and a half the Egyptians lost something like 9,000 men, while it was estimated that 40,000 of their opponents had perished. His Lordship stated that, in the expectation that the fresh efforts then about to be made would result in the restoration of tranquillity, a plan should be carefully considered