J / 174 THE STORY OF THE KHEDIVATE.

/ to his own enrichment monies his creditors might \ in justice call upon him to replace.

) Shortly after the publication of the above article, the Commissioners of the Public Debt proposed a Commission of Inquiry, and their proposal was supported by the bondholders, and especially by the French bondholders, whose interests were endangered by the financial crisis in Egypt. For reasons I have already indicated, France felt the necessity for the appointment of such a Commission niore keenly than any other European Power. M. Waddington, the then Minister of Foreign Affairs under the Republic, informed our own Government, early in 1878, that, in his opinion, the time had arrived for the appointment of an International Commission, empowered to investigate the financial position of Egypt, and the causes of her insolvency. This proposal was further strengthened by an intimation that if England and France were not prepared to act, Germany might step in for the protection of the German bondholders. From what quarter this intimation was given, I am not prepared to say. I can only say it was conveyed shortly after Nubar had paid a visit to Berlin, in the course of which he had discussed Egyptian affairs with Prince Bismarck.

Finally, Lord Derby gave way, and agreed "to cooperate with the Government of France in any useful measure not inconsistent with the Khedive's inde-1 pendent administration of Egypt." On learning that 1 England and France had come to an understandings