"and from thence it shall follow the western shore of the

gulph of Akaba and the eastern shore of the gulph of "Suez, as far as Suez."

"3. The annual tribute to be paid to the Sultan by "Mehemet Ali shall be proportioned to the greater or less "amount of territory of which the latter may obtain the "administration, according as he accepts the first or the "second alternative.”

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"5. All the Treaties and all the laws of the Ottoman Empire shall be applicable to Egypt and to the Pachalic "of Acre, such as it has been above defined, in the same "manner as to every other part of the Ottoman Empire. "But the Sultan consents, that on condition of the regular payment of the tribute above mentioned, Mehemet Ali "and his descendants shall collect-in the name of the "Sultan, and as the delegate of his Highness, within the provinces the administration of which shall be confided to "them-the taxes and imposts legally established. It is more"over understood that, in consideration of the receipt of the "aforesaid taxes and imposts, Mehemet Ali and his descen"dants shall defray all the expenses of the civil and military "administration of the said provinces.

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"6. The military and naval forces which may be main"tained by the Pacha of Egypt and Acre, forming part of "the forces of the Ottoman Empire, shall always be con"sidered as maintained for the service of the State" (g).

Recently the Sultan and the Turkish Government were alarmed and offended by what they conceived to be conduct on the part of the Viceroy or Khedive, indicating a claim on his part to be treated as an independent Sovereign. This alarm, it is supposed, was partly founded on the reception of the Viceroy, by the different Courts of Europe, on his visits to them; on his invitation to foreign Powers to be present at the opening of the Suez Canal; on certain steps which he had taken to attract strangers, and to found

(g) Hertslet's Treaties, vol. v. pp. 547-549,

commercial establishments in Egypt, and on certain regulations with respect to the institution of schools; and also on account of the purchase of vessels and ammunition of war.

The Turkish Minister addressed a letter of complaint upon these and other subjects to the Viceroy, in reply to which he denied that he had ever gone "beyond the limits of the “rights and duties prescribed by the Imperial Firmans.” The Porte, however, insisted upon certain conditions, which, after diplomatic intervention, the Viceroy accepted (h).

XCIXA. Suez Canal (i). The recent war between Russia and the Porte brought out into a clear light the necessity for some determination on the part of the European, and perhaps of the American States, with respect to the international position of the Suez Canal in time of war. As a matter of fact, that great highway of communication to the East remained unimpeded by the blockade of either belligerent.

The course adopted by England is best explained by the following correspondence between the English Foreign Office and the English Ambassador at the Porte (j).

"The Earl of Derby to Lord Lyons.

"Foreign Office, May 16, 1877.

"My Lord,-M. de Lesseps called upon me at the Foreign Office on the 10th inst., having, as he stated, come "expressly from Paris to lay before her Majesty's Govern"ment a project for regulating the passage of ships of war "through the Suez Canal.

"I received him in company with the Chancellor of the "Exchequer, and he handed to me the draught project of "which I enclose a copy.

"After some conversation, I told him that the question "of the position of the Suez Canal under present circumstances was a difficult and delicate one, and that I could

(h) See the Viceroy's defence at length, Ann. Reg. 1869, p. 273.

(i) See debates in the House of Commons, May 4, 1877.

() Papers laid before Parliament, June 5, 1877; The Times, June 6.

"not then say more than that the project which he had "been good enough to submit to me should have full con"sideration.

"Her Majesty's Government have since carefully con"sidered the project, and have come to the conclusion that "the scheme proposed in it for the neutralization of the "Canal by an International Convention is open to so many "objections of a political and practical character that they "could not undertake to recommend it for the acceptance of "the Porte and the Powers.

"Her Majesty's Government are, at the same time, "deeply sensible of the importance to Great Britain and "other neutral Powers of preventing the Canal being in"jured or blocked up by either of the belligerents in the pre"sent war, and your Excellency is at liberty to inform M. "de Lesseps that her Majesty's Government has intimated "to the Russian Ambassador that an attempt to blockade or "otherwise to interfere with the Canal or its approaches would "be regarded by her Majesty's Government as a menace to "India, and as a grave injury to the commerce of the world. "I added that on both those grounds any such step-which "her Majesty's Government hope and fully believe there is no "intention on the part of either belligerent to take-would "be incompatible with the maintenance by her Majesty's "Government of an attitude of passive neutrality.

"Her Majesty's Government will cause the Porte and "the Khedive to be made acquainted with the intimation "thus conveyed to the Russian Government, and her Ma"jesty's Ambassador at Constantinople and Agent in Egypt "will be instructed to state that her Majesty's Government "will expect that the Porte and the Khedive will on their "side abstain from impeding the navigation of the Canal, or adopting any measures likely to injure the Canal or its approaches, and that her Majesty's Government are firmly "determined not to permit the Canal to be made the scene "of any combat or other warlike operations.

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"In stating this to M. de Lesseps, your Excellency will

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"explain that her Majesty's Government have thus taken "the initiative in regard to the protection of the Canal on account of the pressing necessity, as regards British in"terests, of maintaining the security of the Canal, and they "do not doubt that if the Canal were to be seriously "menaced the French and other Governments would adopt a similar course.-I am, &c.

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"Memorandum by M. de Lesseps.

"DERBY."

"The very clear declaration made by the English Go"vernment to the two Houses of Parliament of its resolu"tion to maintain the freedom of the passage of the Suez "Canal for its men-of-war has led me to believe that there "might now be an opportunity of concluding an agreement "with other Governments on this subject.

"As President of the Financial Company with which Eng"land is connected, I submit to Lord Derby a project simply expressing my personal views, which I have reason to be"lieve the Duc Decazes would be disposed to adhere to "after a private conversation which I had with him yesterday morning.

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"Should the British Minister not think it well to initiate "negotiations with the other Cabinets, I would make, at Paris, to the representatives of the several Powers in"terested, the overtures which I have made to Lord Derby "and the Duc Decazes.

"London, May 10, 1877."

"FERD. DE LESSEPS.

"International Agreement as to Passage of Ships of War through the Suez Canal."

"Since the opening of the Suez Canal in 1869 the com"plete liberty of passage through the Maritime Canal and "the ports connected with it has been respected for State "vessels as well as for merchant ships, even on the part of belligerent Powers at the time of the Franco-German "War.

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"The Governments of *** now agree to maintain the "same liberty to all national or commercial vessels, whatever "may be their flag and without any exception, it being "understood that national ships will be subject to the mea"sures which the territorial authority may take to prevent ships in transit from disembarking on Egyptian territory any troops or munitions of war."

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"The Earl of Derby to Mr. Layard.

"Foreign Office, May 16. Sir, I transmit to your Excellency herewith a copy of "a despatch which I have addressed to her Majesty's Am"bassador at Paris, respecting a project, of which a copy is "also inclosed, communicated to me by M. de Lesseps, for "the neutralization of the Suez Canal.

"Your Excellency will see that Her Majesty's Govern"ment have declined to adopt that project, but have in"formed M. de Lesseps of the intimation made by her

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Majesty's Government to the Russian Ambassador that an attempt to blockade or otherwise to interfere with the "Canal or its approaches would be regarded by her "Government as a menace to India, and as a grave injury "to the commerce of the world, and that on both these grounds any such step-which her Majesty's Government hope and fully believe there is no intention on the part of "either belligerent to take—would be incompatible with the "maintenance by her Majesty's Government of an attitude "of passive neutrality.

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"I have to request your Excellency to acquaint the "Porte with the intimation thus conveyed to the Russian "Government, and to state that her Majesty's Government "will expect that the Porte and the Khedive will, on their "side, abstain from impeding the navigation of the Canal, or adopting any measures likely to injure the Canal or its approaches, and that her Majesty's Government are firmly "determined not to permit the Canal to be made the scene "of any combat or other warlike operations.

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