No. 344.
Sir Edward
Thornton to Mr. Evarts.
Sir: The negotiations which have been long carried on between the governments of Germany, Austria-Hungary, France, Great Britain, and Italy, with a view to bring about the formation of a commission of liquidation for the settlement of the Egyptian debts, have resulted, on the 31st of March last, in the inclosed decree* of the Khedive, and in the signature of the declaration of which the text is likewise inclosed.
The course which those governments have followed in this matter is explained by the very importance of the interests which they have in Egypt; indeed, their subjects own almost the whole of the debt, and it was natural that representatives of the immense majority of the holders of credits should be preferred in the composition of the commission of liquidation.
The two documents which are inclosed will show you what are the attributes of this commission, and the authority with which it will be invested for the greatest benefit of the creditors, whether large or small, whose interests are confided to its prudence. You will observe at the same time that, in order to give it a public testimony of confidence, and to insure the conclusion of the business with which it is charged, the powers who signed the declaration have resolved to give force of law to the decisions which the commission shall have arrived at.
As these decisions, however, should be equally applied to those creditors who may belong to other nationalities, the five cabinets have deemed it expedient to request those powers who have concurred in establishing the legal administration of Egypt, by participating in the establishment of the mixed tribunals, to give their adherence, as they themselves have done, to the work undertaken, with their support, by the Government of the Khedive. Independently of the motives of good understanding and of general order which induce them to take this step, they have considered that, as the very fact of the liquidation [Page 517] cannot fail to bring with it the rescission of the original contracts, it is necessary that the Egyptian tribunals should receive from the governments an authorization to apply as law, with respect to all the parties interested, the result of the labors of the commission of liquidation. The five powers hope that their example will bring with it the assent of those states which are less involved than themselves in the financial difficulties of Egypt, but which, nevertheless, are interested in the regular conduct of affairs in that country.
In directing me to submit to you these considerations, ray government has instructed me to convey to you its desire to obtain the adhesion of the Government of the United States to the above-mentioned joint declaration. It does not doubt that, appreciating the advantages which the proposed liquidation will offer to all interests, the cabinet of Washington will willingly associate itself with an undertaking of which the conditions, having been discussed between the powers who are more particularly affected by the inconveniences of the situation to which it was desired to bring a remedy, present all the guarantees of justice and impartiality which can be desired.
I shall feel obliged if you will be good enough to acquaint me, as soon as it may be in your power, with the views of the Government of the United States upon this subject.
I have, &c.,
- For the text of this decree, see Mr. Farman’s dispatch No. 381, of April 5, 1880, under correspondence with Turkey, post.↩