LORD DUFFERIN'S REPORT Mr. Gladstone's Government reaffirms its intention of an early withdrawal from Egypt— Lord Dufferin instructed to draw up a report on the future administration of Egypt — General character of this report — Recommends abolition of Dual Control and reorganization of Egyptian army imder British officers — Valentine Pasha appointed Sirdar by the Khedive — Appointment cancelled by orders of the British Government — Loss of golden opportunity for abolishing International Boards throughout Egypt.

I HAVE thought it well to carry this narrative of the Mahdis insurrection to its crowning triumph in the annihilation of Colonel Hicks's army, as, unless the gravity of these events is fully appreciated, it is impossible to understand the effect they produced upon the relations between England and Egypt.

By the end of 1882, the Arabi insurrection had been wiped out of existence, and order had been restored in Egypt by the presence of the British army of occupation. The year 1883, however, was not a week old before the British Government renewed its assurances that the occupation was only of a temporary and provisional character. Lord