The Act of Concession for the construction of the Suez Canal was granted by the Viceroy, Said Pacha, to M. de Lesseps on the 30th of November 1854, and was followed, on the 5th of January 1856, by a second Act, to which were annexed the Articles of Association of a company for working the concession. The charter thus granted to the Suez Canal Company gave it a ninety-nine years’ lease (counting from the date of opening), to dig and work—
1. A maritime canal from sea to sea, with a northern port on the Mediterranean, and an inland port at Lake Timsah.
2. A fresh-water canal from Cairo to Lake Timsah, with branches north and south supplying the two canal seaports.
For the carrying out of this undertaking the Government of Egypt granted the company:—
1. The lands necessary for the company’s buildings, offices, and works on the canal, gratuitously, and free from taxation.
2. The lands, not private property, brought under cultivation by the construction of the fresh-water canal, gratuitously, and free from taxation for ten years.
3. The right to charge landowners for the use of the water of the fresh-water canal, which, on the other hand, it was bound to supply.
4. All mines found on the company’s lands, and the right to extract from all State mines and quarries, free of cost, royalty, or tax, the stone, plaster, or other materials required for the construction of the canal and ports.
5. Freedom from duties on its imports.
It was provided that the canal and works were to be finished, save for unavoidable delays, within six years. Native labour was to be employed to the extent of four-fifths of the whole, a special convention settling the terms on which the Government supplied or authorised such labour. The tolls were fixed at 10 frs. per “ton of capacity” (an expression which gave rise to difficulties subsequently), and 10 frs. for each passenger.