tesmen of both countries were
enabled to complete negotiations settling many points in dispute between
the two nations. On the 8th of April 1904 a declaration was signed by
the representatives of France and Great Britain which virtually
recognized the dominant position of France in Morocco and of Britain in
Egypt. The chief provisions concerning Egypt were:--

"His Britannic Majesty's government declare that they have no
intention of altering the political status of Egypt.

"The government of the French Republic, for their part, declare that
they will not obstruct the action of Great Britain in that country by
asking that a limit of time be fixed for the British occupation, or in
any other manner.

"His Britannic Majesty's government, for their part, will respect the
rights which France, in virtue of treaties, conventions and usage,
enjoys in Egypt."

Similar declarations and engagements were made by Germany, Austria and
Italy. Annexed to the Anglo-French agreement was the text of a proposed
khedivial decree altering the relations between Egypt and the foreign
bondholders. With the consent of the powers this decree (promulgated on
the 28th of November 1904) came into operation on the 1st of January
1905. The combined effect of the declaration and the khedivial decree
was great. The first-named put an end to an anomalous situation and gave
a practically valid sanction to the presence of Britain in Egypt,
removing all ground for the reproach that Great Britain was not
respecting its international obligations. In effect it was a European
recognition that Britain was the protecting power in Egypt. It put a
period to a question which had long embittered the relations between
England and France, and locally it caused the cessation of the
systematic opposition of the French agents in Cairo to everything
tending to strengthen the British position--however beneficial to Egypt
the particular scheme opposed might be. Scarcely less important were the
results of the khedivial decree. By it Egypt achieved in effect
financial independence. The power of the Caisse de la Dette, which had
virtually controlled the execution of the international agreements
concerning the finances, was swept away, together with almost all the
other financial fetters binding Egypt. The Railway and Port of
Alexandria Board ceased to exist. For the first time since 1875 Egypt
was free to control her own revenue. In return she pledged the