Manawatu Evening Standard. WEDNESDAY, SEPT. 13, 1933. EGYPT’S PREMIER.

Manawatu Standard, Volume LIII, Issue 245, 13 September 1933, Page 6

Manawatu Evening Standard. WEDNESDAY, SEPT. 13, 1933. EGYPT’S PREMIER.

The return of tlie Egyptian Prime Minister to Cairo rather unexpectedly after a holiday on the Continent gave rise to rumours of his impending resignation. These were not entirely without foundation, but, persuaded by the King, Sidky Pasha has consented to remain in office with his Cabinet unchanged. King Euad is not at all popular with the Wafdists, the members of the Nationalist Party, and the Prime Minister’s resignation would have been their triumph. That Egypt has appeared so seldom in the news for several months past may be ascribed to the Ministry of Sidky Pasha. It is a “one man” Cabinet, but his strength has meant tranquillity for a country that has passed through. periods of turbulent political unrest in the past decade. Unfortunately, * however, Sidky Pasha has in recent months been a very sick man. His visit to Europe was primarily to regain his physical strength, which finally could not withstand the demands of his office. It had, however, another implication which transcended in importance at the moment the country’s politics. This related to the dispute regarding the payment of the Egyptian debt, which the Prime Minister discussed with representatives of the French Government while in Paris. Egypt is committed under an agreement made in 1876 to' discharge foreign obligations incurred by its profligate rulers in the preceding 20 years. For forty years its currency had been linked with sterling, and Great Britain’s departure from the gold standard compelled Egypt to take similar action. The question then arose as to whether the debt obligations should be met in gold or in Egyptian currency. Opinion in Egypt itself is unanimous, and there was a storm of protest when a Mixed Court in January held that payment should be made in gold. Against that decision the country has appealed, and it is worthy of mention that the British Government and London financial interests generally support the contention that a demand for payment in gold is impolitic. Compliance with the terms of the Court’s decree means the addition of nearly 50 per cent, to Egypt’s annual debt charges. The viewpoint of British financial circles is that it would be unwise to embarrass a State, which has loyally fulfilled its financial obligations for more than a generation, for the benefit of bondholders in countries which reduced their debts by depreciating their currencies. The French Government naturally desires to protect the interests of the French bondholders, but it was considered a hopeful sign that it was prepared to hear Sidky Pasha on behalf of his country’s claims. Italy is also an interested party whose decision will be influenced by the conclusion of the French bondholders, whose Government maintains that nothing can be done without their consent. It is believed, nevertheless, that British opinion on the matter has not been without some effect in France. King Fuad and the Egyptian Parliament v r ere therefore keenly interested to learn the ans Aver that Sidky Pasha has brought from Paris, for, as stated, the matter is of greater importance at the moment than others in the political sphere.