HC Deb 09 April 1883 vol 277 c1826

asked the Under Secretary of State for Foreign Affairs, Whether the new Egyptian Loans will be raised on the general credit of the Egyptian Government, or whether any portion of the revenues hitherto devoted to the Egyptian Administration is to be specially assigned over for the new debt in the same way as half the gross revenues are already assigned for previous debts; whether the arrangements for borrowing and paying away the money are to be made on the sole authority of the Khedive as an absolute prince, and neither the old Chamber of Notables nor the proposed now Councils are to be allowed any voice in the matter; and, whether the now loans are to be secured by any International obligation, or in any other way, the British Government will come under any sort of obligation to compel payment in case of failure?


Sir, it has been repeatedly stated that the British Government are not responsible for the debts of the Egyptian Government. I mentioned on Thursday last that, under Article 37 of the Law of Liquidation, the Egyptian Government had powers to borrow a certain sum on current account. Whether it will be necessary to go beyond the amount, as limited in the Law of Liquidation, in order to meet the expenditure for the Indemnity and the Army of Occupation, is, as I stated, a question now occupying the attention of the Financial Adviser of the Egyptian Government, who is in Europe, on business connected with the above and other financial questions. Under Article 60, chapter 5, of the Draft Egyptian Charter, the General Assembly must be consulted before any loan exceeding £1,000,000 sterling can be raised.