The Timaru Herald. TUESDAY, JANUARY 24, 1899.

Timaru Herald, Volume LXII, Issue 2917, 24 January 1899, Page 2

The Timaru Herald. TUESDAY, JANUARY 24, 1899.

Shortly after the recent great events m the Soudan — the battle of Omdurman, the hoisting of the British and Egyptian flags at Fashoda, and the reoccupation of Khartoum — Lord Salisbury made a speech m which, m answer to numerous suggestions and anticipations m the British press, he stated plainly that his Government were not prepared to declare an Egyptian Protectorate. Nevertheless, there can be no doubt that the unqualified success of the Sirdar m the Soudan, and the firmness of the British Government over the Fashoda business, have greatly strengthened the hold that Britain has upon Egypt. It is not too much to say that as soon as the extent and completeness of the Sirdar's victories were known, the position of the Egyptian question underwent a great change. The almost unanimous decision of the British nation, expressed m a variety of ways, was that the occupation of Egypt should be permanent. Perhaps that had been understood previously, but it had never been stated m such plain terms as were used after the Fashoda incident and the occupation of Khartoum. The attitude of the British nation — for Conservatives and Liberals were for once m thorough agreement — created a profound impression m France, and her Government saw at once that under the circumstances it was useless to attempt interference unless France was prepared to go to war over the Egyptian question as it had come to be regarded by her neighbours across the channel. A little later on, the cablegrams announced the terms of the AngloEgyptian Convention m regard to the situation brought about by the reconquest of the Soudan. That undertaking had been accomplished by the joint efforts of British and Egyptian troops, and before the Sirdar had commenced his campaign, it was given out that his business was to reconquer for Egypt all the territory over which she had held sway previously to the Mahdi'cs successful rebellion. It seemed, therefore, to outsiders that the intention was that the Soudan when reconquered should become an ordinary Egyptian Province to be governed as the other parts' of the Khedive's dominions are governed. The Convention showed that all such anticipations were incorrect. The government of the reconquered territoryihas been placed' on an entirely different footing. The dominant position of Great Britain is made very clear indeed ; so clear, m fact, that it is certain that the Soudan is under British rule much more fully than are the protected Native States m India. So far as we can see, there is no mention of the Sultan m the Convention. He is not recognised as the suzerain authority. The Convention is with the Khedive, but it is evident that even he will not be , the real ruler of the Soudan. Under forms which, for expediency's sake, point to him as the sovereign, the real authority rests with the British Government. They are the masters, and that is fully recognised by the Powers. It may be said that the British Government occupy substantially the same position throughout the Khedive's dominions. To a large extent that is true, but not altogether so. In the course of last year the well known author and journalist, Mr G. W. Steevens, published an excellent little book entitled "Egypt m 1898." In a chapter relating to the complex government of the country, and the difficulties which it imposes on the Englishmen who have to cany on the work, he says:— I " Egypt is only half or a quarter an

independent country. There are m Egypt, as m Turkey, what are called Capitulations with foreign Powers, and the general effect of these is that Egypt has hardly any jurisdiction whatever over the subjectsof any Power with which she has Capitulations. These include all the Great Powers and most of the small ones. Practically Egypt no authority whatever over forefgners within her gates. She cannot tax them •without the consent of their Governments, though they may make a fortune out of the country; she cannot punish them though they may commit every crime m her calendar. If I were to go out of the hotel now and shoot an Egyptian, and then go into a Frenchman's house, the Egyptian police could not enter the house without the presence of the French Consul, and could not arrest me without the presence of the English Consul ; and by him I should be tried. As Egypt is full of foreigners, many of them the wealthiest men m the country, and many also the most rascally, these Capitulations add a new perplexity to the task of government." Then with regard to the revenue, he explains that Egypt cannot even spend her own money. "In the interests of her creditors, the bondholder?, Europe set up the Caisse de la Dette. On this body sits a representative of each of the six Great Powers. The revenue of Egypt is divided into two nearly equal parts ; one-half goes to the Caisse to pay the interest on the debt, and the other half to pay for the government of Egypt. If the bondholders fall short, the Government has to make it up. But the Government may be as short as it likes ; the bondholders will not help it out of their half of the revenue, unless the Caisse unanimously agrees. As France and Russia are represented on the Caisse, it need hardly be said that it is exceedingly likely not to agree. The complexities of this double budget are endless " As far as we can make out from the cablegrams, this system will not extend to the Soudan. In fact, the Convention creates an entirely new order of things ; anil a Governor - General, appointed by the Khedive, ivith the consent of Great Britain, will have enormous powers. Doubtless there will be a civil as well as a criminal code of law proclaimed for the Soudan, and properly constituted tribunals will be set up. The Powers, with the exception of France and Russia, will offer no opposition to what is being done, and those two Powers will hesitate to engage m a struggle with Britain over the Soudan question. As Britain will practically have a free hand m the newly acquired territories, a complete reformation may be looked for m the course of the next few years.

Last week's Gazette contained the returns of the revenue and expenditure for the third quarter of' the financial year 1898-99. The total of ordinary revenue for the three months was £1,446,582 17s 9d, and the ordinary expenditure .£1,499,961 7s 3d. An additional £100,000 of Treasury Bills have been issued during the quarter. The total of Customs revenue included m the receipts is £510,351 18s Id, against £485,987 19s Id m the corresponding quarter of 1897, an increase of over £24,000 for the period, which more than makes up for the decrease of £6400 which occurred m the September quarter. Railways show a revenue for the three months, omitting shillings and pence, of £346,620, against £321,092 for the December quarter of last year, with an expenditure of £217,356, against £249,796. Thisisan increase of over £25,000 m receipts, with a decrease of over £32,000 m expenditure. Territorial revenue was £44,134, against £47,718 last year. There is nothing this quarter from receipts m aid nor from released sinking funds. The ordinary departmental charges amount to £659,604, against £654,817 for the corresponding period of 1897. Debentures under the Aid to Public Works Act, 1896, Amendment Act, 1897, have been redeemed to the amount of£loo,ooo, explaining the issue of £100,000 new Treasury Bills, and £50,000 has been transferred to the Public Works Fund. The Public Works account show's under receipts the £50,000 transferred" from Consolidated Fund, also £50,000 from 3 per cent, inscribed stock created and £100,000 as temporary advance on security of debentures. The expenditure amounts to £192,182, including £70,304 for railways, £58,137 for roads, and £39,018 for public buildings. The Consols Account shows deposits inscribed to the value of £5735. Transactions m the Conversion Account comprise 3 per cent, stock created to the amount of £5354 m exchange for debentures. The Advances to Settlers Account shows £100,000 borrowed from the Bank of England on security of 3 per cent, inscribed stock m respect of the second issue of £1,500,000 under the Act. This sum is placed to the credit of the Advances to Settlers Office. It is probable that when the accounts are made up at the end of the financial year, the surplus will be much greater than was anticipated by the Colonial Treasurer when he made his Financial Statement.