No. 645.
Mr. Farman to Mr. Evarts.
June 22, 1880. (Received July 14.)
Sir: I have the honor to inclose herewith a copy of a dispatch, dated the 18th instant, which I have received from Mustapha Pasha Fehmi, minister of foreign affairs, asking the “adhesion” of the Government of the United States to the decisions of the commission of liquidation.
The work of the commission is nearly completed, and it is desired to give the force of law to its decisions immediately on their promulgation, in order to enable the government to pay its floating-debt creditors and to stop the accumulation of interest upon this class of debts, which, at the rate now paid, amounts to a considerable sum each day. It is claimed that, in order to give validity to these decisions, the assent of all the powers who took part in the formation of the new tribunals is necessary.
The minister informs me that all of the powers except the United States, Russia, and Greece, have already given such assent. As to the United States, his excellency has received information that the government at Washington, on an application made on the part of certain European powers for its “adhesion” to the decisions of the commission, was kindly disposed, but declined to act except on a direct application of the Government of Egypt.
Although the commission of liquidation was not originally formed as [Page 1016] it should have been, it seems that the better influences have prevailed in its councils, and that its conclusions are, in the main, satisfactory.
The interest on the unified debt is to be reduced to 4 per cent., while that of the privileged is to remain at 5. About 30 per cent. is to be paid down on the floating debt, and the balance in privileged bonds at par. These bonds are now worth 88 and a fraction, so that those who wish to realize immediately will lose only about 8 per cent. Considering the rate of interest they have received this will be a small sacrifice, and will be willingly sustained. A certain amount is to be set aside annually to pay an annuity to those who have paid the mokabalah.
While justice will not be strictly done as between the native and the foreigner, it will be more nearly so than I had expected, and the latter will most certainly have nothing of which to complain. It is the inhabitants of the country, the native creditors and the tax-payers, who will suffer the most, and it is very doubtful in my mind whether, with all their other burdens, they can possibly pay the amount of interest that has been agreed upon.
Under all the circumstances I, however, think it better for the country and its creditors that the decisions of the commission be adopted, and I do not see that any injury can result therefrom to any American interest. In fact our interests have been exceptionally well taken care of in advance.
I informed you by my dispatch of yesterday, No. 411, of the telegram I had sent relating to the subject no winder consideration. I sent this telegram not only as requested by the minister in his dispatch, but in accordance with his personal solicitation, as well as that of Riaz Pasha, the minister of finance and of the interior, and president of the council of ministers.
On the receipt of this dispatch, if you have not already done so, I would request that you send me a telegram giving such instructions as you deem advisable.
I have, &c.,