Herzl was asked to submit a written expose. Then he asked for permission to have Leopold J. Greenberg go to Egypt and confer with Lord Cromer. Lord Lansdowne said that he would arrange for such a meeting. Greenberg discussed the matter with Lord Cromer in Cairo. There were objections raised by both Lord Cromer and the Egyptian Prime Minister on the ground that an attempted Jewish economy, undertaken in 1891-2 in the region of ancient Midian, had been a pitiful failure. There had been political complications and border disputes with Turkey.
A definitive reply was received by Herzl on December 18, 1902 written on behalf of Lord Lansdowne by Sir T.H. Sanderson, permanent Undersecretary. Lord Lansdowne had heard from Lord Cromer, who favored the sending of a small commission to the Sinai Peninsula to report on conditions and prospects, but Lord Cromer feared that no sanguine hopes of success should be entertained, but if the report of the Commission turned out favorable, the Egyptian Government would certainly offer liberal terms for Jewish colonization.
On the other hand, however, the Zionists should understand that they would be expected to meet the cost of a defense corps and to guarantee the administration. In Lord Cromer's opinion, the most important question was that of the rights which Herzl expected for the projected settlement. He wrote: "In your letter of the 12th ult. you remark that you will become great and promising by the granting of this right of colonization. Your letter does not make clear what is to be understood by these words, and what kind of rights the colonists will expect."
Lord Lansdowne also touched on the question of the new citizenship of the settlers. Herzl had believed that he would have only Englishmen to deal with, since England had become more and more the master of Egypt. It was apparent, however, that the Egyptian Government also played an important part in the discussions.
Lord Cromer confirmed that the Egyptian Government would make it an essential condition that the new settlers become Turkish subjects bound by Egyptian law, but while the British occupation continued the settlers would always be certain of fair treatment.
Herzl was satisfied with this letter and described it as a historic document. The British Government had recognized Herzl as the Zionist leader, and the movement represented by him as a negotiating party. He already saw the "Egyptian province of Judea" under a Jewish Governor, with its own defense corps under Anglo-Egyptian officers.
As a result of the English negotiations, Lord Rothschild seemed to be won over by Herzl. The old banker, who had refused two years before to meet the Zionist leader, now visited him in his hotel. The next task before Herzl was the organization of the Commission. The Commission was composed of the South African engineer, Kessler; the Chief Inspector of the Egyptian Survey Department, Humphreys; Col. Goldsmith was to report on the land; and Dr. Soskin was to study agricultural possibilities. Oscar Marmorek was to investigate building and housing problems and act as General Secretary. Dr. Hillel Jaffe of the Jaffe Hospital was to deal with the problems of climate and hygiene.
The Commission met with great difficulties. There was opposition by the Turks. There was misunderstandings between Herzl and Greenberg. Herzl himself went to Egypt in order to bring the negotiations to a conclusion and to straighten out difficulties. His intervention in no way improved the situation. Lord Cromer had become very cool toward him. He received the general report of the Commission, which observed that "under existing conditions the land is quite unsuitable for settlers from European countries, but if sufficient irrigation were introduced, the agricultural, hygienic and climatic conditions are such that part of the land, which is at present wilderness, could support a considerable population."
An application for the concession was made by Herzl on the advice of Lord Cromer, having as his legal representative a Belgian lawyer of high standing. The Egyptian Government did not receive with favor the outline of the concession. Herzl was received on April 23rd by Chamberlain, who had just returned from his African journey. Chamberlain listened to the report given by Herzl on the work of the Commission. Both regarded the report as unfavorable. Then Chamberlain made this remark:
"On my travels I saw a country for you, Uganda. On the coast it is hot, but in the interior the climate is excellent for Europeans. You can plant cotton and sugar. I thought to myself, that is just the country for Dr. Herzl. But he must have Palestine, and will move only into its vicinity."