- 66 -The implementation of the desired reform from potential to action depends on the possibility of solving the issue at hand. I agree with them on that and say that if we can devise a plan by which the Council can be constituted in a way that the European public trusts, we will remove one of the major obstacles to the significant cultural change I seek. I alluded to this briefly in my last annual report, and I will now discuss it at length.

Before proceeding, I will begin with a preamble in which I remind those reading this report of the facts of the situation regarding the reform of the foreign concessions system.

The ideal truth is obvious and there is no benefit in referring to it, which is that the aforementioned concessions exist and cannot be modified without the consent of the states. The method we have tried to modify what needs to be modified is new in its kind and has no precedent in the management of Egyptian affairs. What was customary in such matters was that the Egyptian government consulted the British government and then issued a circular to the states requesting their ratification of what it wished to change in the existing laws. Neither the Egyptian government issued such a circular, nor is the British government bound to support any reform project. Rather, the opinions I have presented in this report and in my report for the year 1900 regarding private lands. I do not mean by this that His Majesty's government is not concerned with this issue, as the reality is the opposite, because it sees, as I do, that the foreign concessions system in Egypt has had its day and that there is an urgent need to change it. However, since this issue is very complex and intricate, and its situation requires a complete knowledge of local conditions, it is natural for those concerned with it in Egypt to inform them of the specific changes that arise from the situation before they decide on what action to take. This is the position of the British government in this matter.

I have a few words to say about my position. I know clearly what change is required, as I have considered the conditions of Egypt for a long time. And having thoroughly examined the present situation of Egypt, I have concluded that legislation by political means, as is currently the case, must be abandoned and replaced by legislative will, lest the country's material and moral progress be hindered. As for how to implement this change from potential to action, and the restrictions that would limit the Council's authority, its composition, and so on, the opinions I hold on this matter are still subject to change as I gain more insight from further reflection, research, and discussion. Therefore, I will not make any specific, definitive proposal of this kind until I know more than I do now about the opinions of those who are concerned.