The River War: An Account of the Reconquest of the SudanChurchill, Winston
History
The River War: An Account of the Reconquest of the Sudan
Churchill, Winston
Sudan -- History -- 1881-1899
About half the revenue of Egypt is devoted to the development and
government of the country, and the other half to the payment of the
interest on the debt and other external charges; and, with a view
to preventing in the future the extravagance of the past, the London
Convention in 1885 prescribed that the annual expenditure of Egypt shall
not exceed a certain sum. When the expenditure exceeds this amount,
for every pound that is spent on the government or development of Egypt
another pound must be paid to the Commissioners of the Debt; so that,
after the limit is reached, for every pound that is required to promote
Egyptian interests two pounds must be raised by taxation from an already
heavily taxed community. But the working of this law was found to be so
severe that, like all laws which exceed the human conception of justice,
it has been somewhat modified. By an arrangement which was effected in
1888, the Caisse de la Dette are empowered, instead of devoting their
surplus pound to the sinking fund, to pay it into a general
reserve fund, from which the Commissioners may make grants to meet
'extraordinary expenses'; those expenses, that is to say, which may be
considered 'once for all'(capital) expenditure and not ordinary annual
charges.
The Dongola expedition was begun, as has been said, without reference
to the immediate internal condition of Egypt. The moment was a good one,
but not the best. It was obviously impossible for Egypt to provide for
the extraordinary expenses of the military operations out of revenue.
The Ministry of Finance therefore appealed to the Caisse de la Dette
for a grant from the general reserve fund. Here was an obvious case of
'extraordinary expenses.' The Egyptian Government asked for £E500,000.
The Caisse met in council. Six Commissioners--representing England,
France, Russia, Germany, Austria, and Italy--duly discussed the
application. Four Commissioners considered that the grant should be
made. Two Commissioners, those representing France and Russia, voted
against it. The majority decided. The grant was made. The money was
handed to the Egyptian Government and devoted to the prosecution of the
war.
Egypt as a sovereign power had already humbly begged to be allowed to
devote part of the surplus of her own revenues to her own objects. A
greater humiliation remained. The Commissioners of France and Russia,
who had been out-voted, brought an action against their colleagues on
the grounds that the grant was ultra vires; and against the Egyptian
Government for the return of the money thus wrongly obtained. Other
actions were brought at French instigation by various people purporting
to represent the bondholders, who declared that their interests
were threatened. The case was tried before the Mixed Tribunals, an
institution which exists in Egypt superior to and independent of the
sovereign rights of that country.
Public-domain text, read in full here on John Shaqi.
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