According to the Parliamentary White Paper [Cd. 7,325] the administrative accounts of the Company for the year ending March 31, 1913, showed that the Customs receipts and native tax for Southern Rhodesia amounted to 769,978l. and the expenditure 889l. in excess of that sum. The revenue of Northern Rhodesia was 126,336l., and expenditure 178,044l. The total deficit was therefore 52,597l. The annual meeting of the Company was deferred pending the decision of the Government as to the Charter and was held on December 17. The report referred with satisfaction to the action of the Government and the prospect of a decision by the Judicial Committee of the Privy Council as to the ownership of the unalienated lands. The accounts for the year ending March 31, 1914, showed a credit balance of 102,271l. as compared with 85,882l. the previous year. The Southern Rhodesia administrative account showed a surplus revenue of 17,125l. The administrative accounts for Northern Rhodesia showed a deficit of 48,177l. The Directors were of opinion that steady progress was being made in building up a stable and growing revenue. The total receipts from land from all sources were 134,700l., "likely to be largely increased in future years." The mineral estate yielded 63,041l., and the total gross income, exclusive of administrative revenue but inclusive of net receipts from land, amounted to 422,532l. While it was impossible to predict what the effects of the war might be the Directors thought that the disturbance of the Company's operations in certain directions and the shrinkage of the capital value of its investments were not likely to do more than "retard the fulfilment of their hopes."
The total gold production of Rhodesia in 1914 was of the value of 3,580,207l., as against 2,903,267l. in 1913.
II. EGYPT AND THE SUDAN.
At the outbreak of the war the Khedive Abbas Hilmi was at Constantinople, the guest of the Sultan, and Lord Kitchener was home on leave in England. Up to that time the affairs of Egypt had followed a normal course. The Khedive did not return to Cairo. Such information as was permitted to reach England indicated that agents of enemy Powers were engaged in intrigue against us in Egypt, and that emissaries of Turkey were also actively hostile. No news was forthcoming of military changes. There was an ominous silence, broken by occasional messages of reassurance as to the friendly attitude of the Egyptian people. With the advent of Turkey among the combatant Powers at the end of October a new situation arose which had swift and dramatic results. Martial law was proclaimed at Cairo and wholesale arrests of Turkish agents were made. It appeared that Germans and Austrians had been interned and the crews of enemy vessels at Alexandria deported to Malta. Egyptians of dangerous tendencies had also been restrained. On November 2 Lieut.-General Sir John Maxwell assembled at the British Agency a number of Bedouin Sheikhs and informed them that Germany had been successful in inducing the men in power at Constantinople to quarrel with the Allies. "The Government," he is reported to have added, "has therefore convoked the Arab notables, enjoining them that their duty is to remain calm and enjoy the peace and tranquillity on Egyptian soil which the British forces ensure. If the Government finds it necessary to appeal to their devotion to serve the country the Government is fully confident of their reply to its appeal." The notables assured Sir John of their loyalty. By this time it had become known that British Territorial regiments and Indian and Australian troops were in the country, and were being reinforced, and it also appeared that a Turkish Army had entered Egyptian territory in the Sinai Peninsula. British patrols were in touch with advance parties of the enemy thirty miles east of the Suez Canal in December, and nothing further was reported by the close of the year. On December 2 the censorship permitted an official statement that Australian and New Zealand contingents "had disembarked in Egypt to assist in the defence of that country and to complete their training there. When their training is completed they will go direct to the front to fight with other British troops in Europe." These arrivals increased the forces in Egypt by about 20,000, but how many troops we had in the country was not discovered.
A period of official silence and strict censorship of news was broken by a Foreign Office announcement in London, through the censorship, that in view of the state of war arising out of the action of Turkey "Egypt is placed under the protection of His Majesty and will henceforth constitute a Protectorate. The suzerainty of Turkey over Egypt is thus terminated and His Majesty's Government will adopt all measures necessary for the defence of Egypt and the protection of its inhabitants and interests." Lieut.-Colonel Sir Arthur Henry McMahon was appointed High Commissioner. Next day there was a further announcement that, in view of the action of Abbas Hilmi, "lately Khedive of Egypt," who had adhered to the King's enemies, His Majesty's Government had seen fit to depose him from the Khediviate and had offered that high dignity, with the title of Sultan of Egypt, to his Highness Prince Hussein Kamel Pasha, eldest living Prince of the family of Mehemet Ali. The Foreign Office also announced that the French Republic having recognised the British Protectorate over Egypt, His Majesty's Government gave notice of adherence to the Franco-Moroccan Treaty of March 30, 1912. The Foreign Office published simultaneously a letter addressed to the new Sultan by the Acting High Commissioner, dated Cairo, December 19. It was a review of the circumstances preceding the outbreak of war with Turkey, and the consequent changes in the status of Egypt. The letter drew Prince Hussein's attention to the fact that there were two parties in the Turkish Cabinet—a moderate and reforming party who welcomed the assurances of His Majesty and his Allies that neither in Egypt nor elsewhere would the war in Europe be used as a pretext for any action injurious to Ottoman interests, and "a band of unscrupulous military adventurers" who looked to find in a war of aggression waged in concert with His Majesty's enemies, "means of retrieving the disasters, military, financial, and economic into which they had already plunged their country." His Majesty and his Allies, in spite of repeated violation of their rights, had abstained from retaliatory action until the crossing of the Egyptian frontier and the unprovoked attack on Russian ports by Turkish naval forces under German officers. His Majesty's Government possessed ample evidence that since the outbreak of the war with Germany Abbas Hilmi Pasha, the late Khedive, had definitely thrown in his lot with His Majesty's enemies. The rights of the Sultan and the Khedive over the Egyptian Executive were therefore forfeited to His Majesty, whose Government, through the General Officer commanding the Forces, "accepted exclusive responsibility for the defence of Egypt during the present war. It remains to lay down the form of the future Government of the country, freed from all rights of Suzerainty or other rights heretofore claimed by the Ottoman Government." For thirty years His Majesty's Government had regarded themselves as trustees for the inhabitants of Egypt, and they now decided that Great Britain could best fulfil the responsibilities incurred by the formal declaration of a British Protectorate and by the government of the country under such a Protectorate by a Prince of the Khedivial family. "By reason of your age and experience," the letter proceeded, "you have been chosen as the Prince of the family of Mehemet Ali most worthy to occupy the Khedivial position with the title and style of the Sultan of Egypt.... With Ottoman Suzerainty there will disappear the restrictions heretofore placed by Ottoman firmans upon the numbers and organisation of Your Highness's Army.... As regards foreign relations His Majesty's Government deem it most consistent with the new responsibilities assumed by Great Britain that the relations between Your Highness's Government and the Representatives of Foreign Powers should be henceforth conducted through His Majesty's representative at Cairo." With regard to the system of treaties known as the Capitulations, "revision may most conveniently be postponed until the end of the present war." It was the intention of His Majesty's Government to remain faithful, in internal administration, to the policy of reform and economic progress and to associate the governed in the task of government in such measure as the enlightenment of public opinion permitted. They were convinced that the clearer definition of Great Britain's position in the country would accelerate progress towards self-government. Religious convictions would be scrupulously respected; "nor need I affirm," added Sir Arthur McMahon, "that in declaring Egypt free from any duty of obedience to those who have usurped political power at Constantinople, His Majesty's Government are animated by no hostility towards the Khalifate. The past history of Egypt shows indeed that the loyalty of Egyptian Mohammedans towards the Khalifate is independent of any political bonds between Egypt and Constantinople." His Majesty's Government relied with confidence upon the loyalty, good sense, and self-restraint of Egyptian subjects to facilitate the task of the General Officer commanding the forces, who is "entrusted with the maintenance of internal order and with the prevention of the rendering of aid to the enemy."
His Majesty appointed Prince Hussein honorary Knight Grand Cross of the Order of the Bath and also of the Order of St. Michael and St. George, and sent to him the following message:—
On the occasion when your Highness enters upon your high office I desire to convey to your Highness the expression of my most sincere friendship and the assurance of my unfailing support in safeguarding the integrity of Egypt and in securing her future well-being and prosperity.
Your Highness has been called upon to undertake the responsibilities of your high office at a grave crisis in the national life of Egypt, and I feel convinced that you will be able, with the co-operation of your Ministers and the Protectorate of Great Britain, successfully to overcome all the influences which are seeking to destroy the independence of Egypt and the wealth, liberty, and happiness of its people.
George R. AND I.