Correspondence with A J Balfour, Sir R Wingate, Lord Allenby, Lord Milner and others on Egypt [‎2r] (3/300)

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Lord Curzon*^
[This Docnment is the Property of His Britannic Majesty’s Government.]
CONFIDENTIAL.
ORANDUM ON BRITISH DESIDERATA IN EGYPT. "
U,
I .—Judicial and Capitulatory.
THE main British desiderata in Egypt are contained in Chapter VII of the
document entitled “ Sketch of a draft Treaty of Peace between Turkey and the Allied
Goverri]nents. ,, As this paper deals with the matter most concisely, and as it is
undesirable to allow discussion on Egypt to be unduly protracted, these desiderata are
here reproduced in full.
“1. The High Contracting Parties recognise the protectorate over Egypt
declared by Great Britain on the 18th December, 1914. They also take note of
the fact that the suzerainty of His Imperial Majesty the Sultan over that country
is terminated.
“ A Realising that the regime of the Capitulations in Egypt is no longer
consistent with the progress and development of the country, the High Contracting
Parties agree to renounce all rights of extra-territoriality in Egypt. Great Britain
undertakes that in all matters of jurisdiction any rights, privileges, or immunities
conferred by the Egyptian Government on British subjects shall be enjoyed in
equal measure by the subjects and citizens of the High Contracting Parties.
“3. The Imperial Ottoman Government renourfces all claim to the tribute
formerly paid by Egypt.
“ Great Britain undertakes to relieve Turkey of all liability in respect of the
Turkish loans secured on the Egyptian tribute. These loans are : —
“ The guaranteed loan of 1855.
“ The loan of 1894 representing the converted loans of 1854 and 1871.
“ The loan of 1891 representing the converted loan of 1877.
“ The sums which the Khedives of Egypt have from time to time undertaken
to pay over to the houses by whom these loans were issued will be applied as
heretofore to the interest and the sinking funds of the loans of 1894 and 1891
until the final extinction of those loans. The Government of Egypt will also
continue to apply the sum hitherto paid towards the interest on the guaranteed
loan of 1855. Upon the extinction of these loans of 1894, 1891, and 1855 all
liability on the part of the Egyptian Government arising out of the tribute
formerly paid by Egypt to Turkey will cease.
“ The payment of the interest upon the loan of 1855 having been guaranteed
by the Governments of Great Britain and France, the High Contracting Parties
take note that the Government of His Britannic Majesty agrees to indemnify
the Government of the French Republic against the payment of any sums in
respect of such interest, and thereby relieves that Government of all liability
under its guarantee.
“ 4. To safeguard the position of the holders of loans issued by the Egyptian
Government, Great Britain declares that, in the event of any default by the
Government of Egypt in the payment of the annuity of the Guaranteed Debt,
or of the interest on the Privileged or Unified Debts, she will take the
measures necessary to restore financial equilibrium in Egypt, and to protect the
interests of the bondholders of the Egyptian Public Debt.
“ 5. The Commission of the Egyptian Public Debt being no longer required
for the protection of the holders of Egyptian debt in view of the declaration
made by His Britannic Majesty’s Government in the preceding article, the High
Contracting Parties agree to the repeal, or to the modification to such extent
as the Egyptian Government may think desirable, of the decree issued by His
Highness the Khedive on the 28th November, 1904.
“ 6. The Government of His Britannic Majesty agree in view of the altered
political status of Egypt to relieve the Governments of Germany, Austria, France,
Italy, Rusoia, and Turkey of any liability under the obligations which the
Governments of those countries contracted in respect of the interest and sinking
fund on the loan of 9,000,000L raised by the Egyptian Government in 1885
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