Egypt as a sovereign power had already humbly begged to be allowed to devote part of the surplus of her own revenues to her own objects.  A greater humiliation remained.  The Commissioners of France and Russia, who had been out-voted, brought an action against their colleagues on the grounds that the grant was ultra vires; and against the Egyptian Government for the return of the money thus wrongly obtained.  Other actions were brought at French instigation by various people purporting to represent the bondholders, who declared that their interests were threatened.  The case was tried before the Mixed Tribunals, an institution which exists in Egypt superior to and independent of the sovereign rights of that country.

On the part of the Egyptian Government and the four Commissioners it was contended that the Mixed Tribunals had no competency to try the case; that the attacking parties had no right of action; that the Egyptian Government had, in applying, done all that the law of liquidation required; and that the act of sovereignty was complete as soon as the Caisse, which was the legal representative of the bondholding interest, had pronounced its decision.

The argument was a strong one; but had it been ten times as strong, the result would have been the same.  The Mixed Tribunals, an international institution, delivered its judgment on strictly political grounds, the judges taking their orders from the different countries they represented.  It was solemnly pronounced that war expenses were not ‘extraordinary expenses.’  The proximate destruction of the Khalifa’s power was treated quite as a matter of everyday occurrence.  A state of war was apparently regarded as usual in Egypt.  On this wise and sensible ground the Egyptian Government were condemned to pay back EP500,000, together with interest and costs.  After a momentary hesitation as to whether the hour had not come to join issue on the whole subject of the financial restrictions of Egypt, it was decided to bow to this iniquitous decision.  The money had now to be refunded.  It had already been spent.  More than that, other sums were needed for the carrying on of the war.  The army was by then occupying Dongola, and was in actual expectation of a Dervish counter-attack, and it was evident that the military operations could not be suspended or arrested.  It was impossible to stop; yet without money it seemed impossible to go on; and, besides, it appeared that Egypt would be unable to repay the EP500,000 which she had been granted, and of which she was now deprived.

Such was the painful and difficult situation which a friendly nation, in the utmost exercise of her wit and the extreme compass of her legal rights, had succeeded in producing in a country for whose welfare she had always professed an exaggerated regard.  Such was the effect of French diplomacy.  But there is a Nemesis that waits on international malpractices, however cunning.  Now, as before and since, the