Al-Jadida, by encouraging tree planting, and if its efforts are successful, it will act as an intermediary between the farmer and the merchant, thus creating a link between the two parties.

(14) Distribution of Land Holdings I explained in a previous report that the policy the Egyptian government has pursued in recent years is to seek, through various legal intermediaries, to keep the properties of small landowners in their hands and to avoid doing anything that could lead to their loss and their falling into the hands of Europeans, while providing all reasonable facilities for the use of European capital in land improvement in Egypt. This issue is of utmost importance in my opinion, both from an economic and political perspective. I do not need to delve into the arguments for or against the advantages of small holdings, as they are known to those who have studied economic issues. However, I will mention a point of particular importance given the current situation in Egypt. The race to raise rents has not yet led to significant disputes between landowners and tenants, as the country is not yet densely populated. However, as the population has increased and the area of uncultivated land that can be cultivated has decreased, there is a fear of disputes arising between landowners and tenants, similar to what has happened in other countries, causing much trouble, especially in India and Ireland. The best way to postpone the occurrence of this conflict and mitigate its severity, if it is unavoidable, is to refrain from taking measures that lead to the extinction of small landowners. The considerations that guide this policy are no less strong than purely economic considerations. I know of nothing that would cut off the hope of the Egyptians' future administrative independence and their eventual right to self-governance, more than the general dispossession of the people, such as the elimination of small holdings, especially if many of the large landowners who succeed them are Europeans. These considerations are among the reasons that have led me to closely monitor the movement of land ownership for many years. The following table shows the distribution of land holdings among large and small owners on January 1, 1896, and January 1, 1897. The year 1896 was chosen because it was the first year in which foreign-owned properties became fertile. Government properties are not included in this table.

(11)