FIRST STAGE OF INTERVENTION. 153 Goschen and Joubert came to the conclusion that the' funded debt of Egypt ought to be fixed at ; 59,000,000, i and that the interest on this debt should be reduced (/ from 7 per cent, to 6 per cent.

In order to explain the extraordinary discrepancy — between the Egyptian debt as calculated by the Khedive on the one hand and by Messrs. Goschen and Joubert on the other, it may be well to state that the former estimate threw the whole debt of • — Egypt into hotch-potch, while the latter drew a dis-l * tinction between the debts secured by the general — revenues of the country and other debts, which were — guaranteed by special ear-marked securities, such as -• the Daira lands, the State railway receipts, and the dues of the ports of Alexandria.

This settlement, if accepted by the bondholders was to be accompanied by an agreement on the partj of the Khedive to Europeanize the administration Egypt, to place the finances of the State under the supervision of two Controllers nominated respectively/ by the French and the English Governments, and entrust the management of the State railways to Anglo-French Board, assisted by a native Commissioner. It was further stipulated, that if tl British Government should still decline to nominate an English Controller and an English member of the Railway Board, these posts should be filled by the selection of English officials of high standing on the advice of Mr. Goschen. The Controller nominated by France was the Baron de Malaret.