very astuteness of the French Ministers and agents was to strike a terrible blow at French interests and French influence in Egypt.  At this period France still exercised a considerable force on Egyptian politics.  One Egyptian party, the weaker, but still by no means insignificant, looked towards her for support.  The news of the French success cheered their hearts and raised their spirits.  Orientals appreciate results.  The result was a distinct reverse to the British.  The conclusion to the native mind was obvious.  Great Britain had been weighed in the European balances and found wanting.  In all Eastern countries a large proportion of the population fluctuates uncertainly, eager only to be on the winning side.  All this volume of agitation and opinion began to glide and flow towards the stronger Power, and when the Egyptian Government found their appeal from the decision of the Court of First Instance of the Mixed Tribunals to the International Court of Appeal at Alexandria quashed, and the original decision confirmed, the defeat of the British was no less complete than the triumph of the French.

But meanwhile the Consul-General acted.  On the 2nd of December he telegraphed to Lord Salisbury, reporting the judgment of the Court of Appeal and asking that he might be ’authorised to state directly that her Majesty’s Government will be prepared to advance the money on conditions to be hereafter arranged.’  The reply was prompt, though guarded.  ’You are authorised,’ said Lord Salisbury, ’by the Chancellor of the Exchequer to state that though of course the primary liability for the payment of the EP500,000 rests with the Egyptian Government, her Majesty’s Government will hold themselves prepared to advance, on conditions to be decided hereafter, such a sum as they feel satisfied that the Egyptian Treasury is powerless to provide.’ [The original EP500,000 was afterwards increased to EP800,000; which sum was paid by the British Exchequer to the Egyptian Government, at first as a loan, and later as a gift.] This obvious development does not seem to have been foreseen by the French diplomatists, and when, on the 3rd of December, it was rumoured in Cairo that Great Britain was prepared to pay the money, a great feeling of astonishment and of uncertainty was created.  But the chances of the French interference proving effective still seemed good.  It was believed that the English Government would not be in a position to make an advance to the Egyptian Government until funds had been voted by Parliament for the purpose.  It was also thought that Egypt would be utterly unable to find the money immediately.  In the meantime the position was humiliating.  France conceived herself mistress of the situation.  A complete disillusionment, however, awaited the French Government.  The taxes in Egypt, as in other countries, are not collected evenly over the whole year.  During some months there is a large cash balance in the Exchequer.  In others the money drains in slowly.  It happened at this period of the year, after the cotton crop had been gathered, that a considerable balance had accumulated in the Treasury, and on the guarantee of the English Government being received, to the effect that they would ultimately assist Egypt with regard to the expenses of the expedition, Lord Cromer determined to repay the money at once.