In the first place, it would have been premature even to think of the question until the long struggle against bankruptcy had been fought and won, and also until, by the conclusion of the Anglo-French Agreement in 1904, the acute international tension which heretofore existed had been relaxed.

In the second place, the idea of what constituted autonomy entertained by those Egyptians who were most in a position to make their voices heard, as also by some of their English sympathisers, differed widely from that entertained by myself and others who were well acquainted with the circumstances of the country, and on whom the responsibility of devising and executing any plan for granting autonomy would naturally devolve. We were, in fact, the poles asunder. The Egyptian idea was that the native Egyptians should rule Egypt. They therefore urged that greatly increased powers should be given to the Legislative Council and Assembly originally instituted by Lord Dufferin. The counter-idea was not based on any alleged incapacity of the Egyptians to govern themselves—a point which, for the purposes of my present argument, it is unnecessary to discuss. Neither was it based on any disinclination gradually to extend the powers of Egyptians in dealing with purely native Egyptian questions.[68] I, and others who shared my views, considered that those who cried "Egypt for the Egyptians" on the house-tops had gone off on an entirely wrong scent because, even had they attained their ends, nothing approaching to Egyptian autonomy would have been realised. The Capitulations would still have barred the way to all important legislation and to the removal of those defects in the administration of which the Egyptians most complained. When the prominent part played by resident Europeans in the political and social life of Egypt is considered, it is indeed little short of ridiculous to speak of Egyptian autonomy if at the same time a system is preserved under which no important law can be made applicable to an Englishman, a Frenchman, or a German, without its detailed provisions having received the consent, not only of the King of England, the President of the French Republic, and the German Emperor, but also that of the President of the United States, the King of Denmark, and every other ruling Potentate in Europe. We therefore held that the only possible method by which the evils of extreme personal government could be averted, and by which the country could be provided with a workable legislative machine, was to include in the term "Egyptians" all the dwellers in Egypt, and to devise some plan by which the European and Egyptian elements of society would be fused together to such an extent at all events as to render them capable of cooperating in legislative effort. It may perhaps be hoped that by taking a first step in this direction some more thorough fusion may possibly follow in the future.

As I have already mentioned, it would have been premature to deal with this question prior to 1904, for any serious modification of the régime of the Capitulations could not be considered as within the domain of practical politics so long as all the Powers, and more especially France and England, were pulling different ways. But directly that agreement was signed I resolved to take the question up, all the more so because what was then known as the Secret Agreement, but which has since that time been published, contained the following very important clause:

In the event of their (His Britannic Majesty's Government) considering it desirable to introduce in Egypt reforms tending to assimilate the Egyptian legislative system to that in force in other civilised countries, the Government of the French Republic will not refuse to entertain any such proposals, on the understanding that His Britannic Majesty's Government will agree to entertain the suggestions that the Government of the French Republic may have to make to them with a view of introducing similar reforms in Morocco.

I was under no delusion as to the formidable nature of the obstacles which stood in the way of reform. Moreover, I held very strongly that even if it had been possible, by diplomatic negotiations with the other Powers, to come to some arrangement which would be binding on the Europeans resident in Egypt, and to force it on them without their consent being obtained, it was most undesirable to adopt anything approaching to this procedure. The European colonists in Egypt, although of course numerically far inferior to the native population, represent a large portion of the wealth, and a still larger portion of the intelligence and energy in the country. Moreover, although the word "privilege" always rather grates on the ear in this democratic age, it is none the less true that in the past the misgovernment of Egypt has afforded excellent reasons why even those Europeans who are most favourably disposed towards native aspirations should demur to any sacrifice of their capitulary rights. My view, therefore, was that the Europeans should not be coerced but persuaded. It had to be proved to them that, under the changed condition of affairs, the Capitulations were not only unnecessary but absolutely detrimental to their own interests. Personally, I was very fully convinced of the truth of this statement, neither was it difficult to convince those who, being behind the scenes of government, were in a position to judge of the extent to which the Capitulations clogged progress in many very important directions. But it was more difficult to convince the general public, many of whom entertained very erroneous ideas as to the extent and nature of the proposed reforms, and could see nothing but the fact that it was intended to deprive them of certain privileges which they then possessed. It cannot be too distinctly understood that there never was—neither do I suppose there is now—the smallest intention of "abolishing the Capitulations," if by that term is meant a complete abrogation of all those safeguards against arbitrary proceedings on the part of the Government which the Capitulations are intended to prevent. Capitulations or no Capitulations, the European charged with a criminal offence must be tried either by European judges or an European jury. All matters connected with the personal status of any European must be judged by the laws in force in his own country. Adequate safeguards must be contrived to guard against any abuse of power on the part of the police. Whatever reforms are introduced into the Mixed Tribunals must be confined to comparatively minor points, and must not touch fundamental principles. In fact, the Capitulations have not to be abolished, but to be modified. An eminent French jurist, M. Gabriel Louis Jaray, in discussing the Egyptian situation a few years ago, wrote:

On peut considérer comme admis qu'une simple occupation ou un protectorat de fait, reconnu par les Puissances Européennes, suffit pour mettre à néant les Capitulations, quand la réorganisation du pays est suffisante pour donner aux Européens pleine garantie de bonne juridiction.

I contend that the reorganisation of Egypt is now sufficiently advanced to admit of the guarantees for the good administration of justice, which M. Jaray very rightly claimed, being afforded to all Europeans without having recourse to the clumsy methods of the Capitulations in their present form.

In the last two reports which I wrote before I left Egypt I developed these and some cognate arguments at considerable length. But from the first moment of taking up the question I never thought that it would fall to my lot to bring the campaign against the Capitulations to a conclusion. The question was eminently one as to which it was undesirable to force the pace. Time was required in order to let public opinion mature. I therefore contented myself with indicating the defects of the present system and the general direction which reform should take, leaving it to those younger than myself to carry on the work when advancing years obliged me to retire. I may add that the manner in which my proposals were received and discussed by the European public in Egypt afforded good reason for supposing that the obstacles to be overcome before any serious reforms could be effected, though formidable, were by no means insuperable. After my departure in 1907, events occurred which rendered it impossible that the subject should at once come under the consideration of the Government, but in 1911 Lord Kitchener was able to report that the legislative powers of the Court of Appeal sitting at Alexandria had been somewhat increased. Sir Malcolm M'Ilwraith, the Judicial Adviser of the Egyptian Government, in commenting on this change, says:

The new scheme, while assuredly a progressive step, and in notable advance of the previous state of affairs ... can hardly be regarded, in its ensemble, as more than a temporary makeshift, and a more or less satisfactory palliative of the legislative impotence under which the Government has suffered for so long.