No. 345.
Mr. Farman to Mr. Fish.
Cairo , December 8, 1876. (Received December 29.)
Sir: I have the honor to transmit herewith duplicate copies of a decree of His Highness the Khédive, dated November 18, 1876. This decree was made pursuant to and in accordance with the agreement made between the English and French holders of Egyptian bonds, through their agents, Messrs. Goschen & Joubert, and the Egyptian Government.
The principal provisions of the decree are:
- 1st.
- It separates the private debts of the Khedive, called the debts of the Baira, from those of the Egyptian Government.
- 2d.
- It re-establishes the Moukabalah, with the modification that the reduction of taxes promised is not to take effect until the year 1886.
- 3d.
- It pledges the receipts of the Moukabalah, to the payment of the bonds of 1864, 1865, 1867.
- 4th.
- It establishes a special administration for the railroads of Egypt and the port of Alexandria, to consist of five persons, of whom two are to be English, one French, and two native.
- 5th.
- It pledges the revenues of the railroads and the port of Alexandria to the amount of £17,000,000 for the payment of the principal and interest of a series of privileged bonds, giving the preference to those of 1862, 1868, and 1873.
- 6th.
- In the decree of May 7, 1876, what was called the “unified debt” amounted to £91,000,000. By the deduction of the Daïra debts, £8,815,431, the £17,000,000 secured by the revenues of the railroad and [Page 620] the port of Alexandria, the amount of the bonds of 1864, 1865, and 1867, which are to be paid by the proceeds of the Moukabalah, and certain other items amounting to £4,135,930, for the payment of which provision is made, the “unified debt” is reduced to £59,000,000. This is made payable in sixty-five years, and is to bear interest at the rate of 7 per cent, per annum, one-seventh of which interest is, however, to be applied until the year 1886 to the purchase for cancellation of the bonds constituting the debt, unless the amount shall be sooner reduced to £40,000,000.
- 7th.
- The decree also provides for the appointment of two comptrollers-general, one English and the other French; one to have the supervision of the collection of all the revenues of the State, and the other to act as an adviser of the minister of finance, as well as perform other duties. The English and French governments are to be requested to name persons to be appointed by the Khedive to these places.
- 8th.
- The commission of the public debt created by the decree of May 2, 1876, is to be continued until the whole debt is paid, and one Englishman is to be appointed upon it, and the English Government is to be officially requested to nominate a person for such appointment. The English and French Governments are also each to be requested to nominate the persons to be appointed from their respective countries as members of the special administration of the railroads and the port of Alexandria.
The decree is generally received with satisfaction, and it is thought to be the best ‘that could be done under all the embarrassments of the financial situation.
Unless prevented by some of the difficulties mentioned in my dispatch No. 77, of November 27, the Egyptian Government will hereafter be able to pay the interest on its public debt and gradually reduce the amount of the principal.
I am, &c.,
United States Agent and Consul-General.