About this date the main body of the British troops was withdrawn from Suakim in accordance with the decision of March 25th. They had inflicted defeats on Osman Digna at El Teb, and again at Tamanieb; many Dervishes and not a few English had been killed, but no effect of moment had been produced, and the road to Berber was not opened.

A new complication now arose. Egypt was presented with Europe's total claims for the losses to Europeans in the burnings at Alexandria. They amounted to four millions and a half. How was this demand to be met? Under the Law of Liquidation established in 1880, Egypt could not borrow without the consent of the five Powers who had constituted the Commission of Liquidation. The demand presented to Egypt had to be considered by the one Power which was now de facto supreme in Egypt.

'On April 2nd there was an important Cabinet called on Egyptian finance. It began, of course, on something else. We discussed the future of Suakim; the replies to be given in the House on the next day as to Gordon; and then Childers' views upon Egyptian finance; while we were considering these, there came a letter from Northcote with the questions that he intended to put on the next day' (questions which could only be answered by a full statement of policy on all the points of the Egyptian problem). 'After going back to this, we went on again to finance, and decided to call a conference of the Great Powers to alter the Law of Liquidation. Mr. Gladstone had unwillingly consented to meet the Powers by proposing to reduce the charge for the British army; and he was anxious to get the money for the British taxpayer out of a borrowing operation on the future value of the Canal Shares. Chamberlain and I decided that if he did this the Tories would declare that Mr. Gladstone had become a pensioner on the bounty of Lord Beaconsfield. There was some talk at this Cabinet as to whether we should guarantee the Egyptian debt, to which I was opposed. Chamberlain had at one time been friendly to such an operation, but had now "gone round" on the ground that we could not "carry it against the Tories and the Radicals." "Is there anything else?" said Chamberlain to Mr. Gladstone as the Cabinet was breaking up. "No," said Mr. Gladstone, "we have done our Egyptian business and we are an Egyptian Government."'

II.

From this time forward the 'Egyptian Government' at Westminster had two main subjects of concern—the question of extricating Gordon with the garrisons, and the question of dealing with the international situation, partly diplomatic and partly financial. France, increasingly unfriendly to Great Britain, was above all unfriendly in regard to Egypt: while Bismarck, doing his best to foment this quarrel, was at the same time weakening Great Britain by menaces in Africa and Australasia, and the danger of a Russian advance in Central Asia hung like a thundercloud over the whole situation. [Footnote: Sir Charles wrote to Mr. Brett on November 15th, 1884: 'I told Herbert Bismarck when he was here that it was very silly of his father to get in the way of our Egypt plans, for France would not go to war about them, and therefore, after threatening, he would have to look on and see the things he had threatened against done quietly.']

There were three groups of opinion in the Government in regard to the Soudan. The first was for an expedition which should carry with it the consequence of occupation more or less prolonged. Another was against any expedition and in favour of immediate evacuation. A third section— including Sir Charles Dilke and Mr. Chamberlain—accepted the need of an expedition, but was determined that occupation should not follow. It was incumbent on this last-named group to suggest a positive policy, and Dilke, as will be seen, had his plan ready. There was a further decision to be taken. When once an expedition was in contemplation, the route and the character of the expedition had to be fixed. On this matter also Sir Charles had early formed a resolve, but neither he nor anyone else could pin the Cabinet to a clear course of action.

'At this time' (April 2nd) 'Chamberlain wrote to me of Egypt: "Once more Hartington, and you and I, are at opposite poles. For one, I do not mean to be forced any further in the direction of protectorate."

'Although they would not admit it, the Cabinet were rapidly coming round at this time to an autumn Gordon expedition, and Chamberlain wrote to me: "I believe it will come to this in the end"; while Northbrook was in favour of an expedition. I then made up a list from private information showing that six of us were favourable to an expedition, as against five the other way—several members having made no statement either way. Those for an expedition were Hartington, Northbrook, the Chancellor (Lord Selborne), Derby, Chamberlain, and myself; and those against it, Mr. Gladstone, Lord Granville, Harcourt, Kimberley, and Dodson. On April 21st, Egypt was discussed without decision, though with the note by me: "The majority now begin to see that an October expedition is certain."

'On the 23rd a Cabinet … considered the possibility of reaching Berber…. After the Cabinet of April 23rd, I advocated a naval expedition by the Nile on the ground that the Admiralty were likely to do the thing better than the War Office. [Footnote: A review by Sir Charles in the Athenæum of October 24th, 1908, deals with the Life of Lord Northbrook, by Sir Bernard Mallet, and his allusions to Lord Northbrook's consideration, as early as April, of a 'rescue and retire' expedition by the Nile route for the autumn, 'it being assumed that the boats then ordered could not pass the various cataracts before High Nile.' See Life of Lord Northbrook, pp. 185-186. A review by Sir Charles of March 28th, 1908, in the same paper, of Modern Egypt, by the Earl of Cromer, also deals with Lord Northbrook's pressure for a Nile Expedition in March, 1884.] On April 28th, Berber, Khartoum, and Gordon, on which there was nothing new, but Hartington insisted on a large and important military expedition.'

'On April 29th Baring had now come over about Egypt, and attended a Cabinet to state his views. I saw him privately, and settled with him the details for a possible Nile expedition "small and early." The difficulty was at the sixth cataract. He also broached to me his scheme for a new control by the four Powers already represented on the Caisse de la Dette—namely, England, France, Austria, and Italy, with an English president.'