f 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 LE500,000 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
L500,000 was afterwards increased to L800,000; 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.

The event was foreshadowed. On the 5th of December the Egyptian Council
of Ministers, presided over by the Khedive in person, decided on their
own initiative to despatch an official letter expressing in warm t