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In the years that followed the condition of things grew worse. Thousands of lives were lost and large sums expended in extending Ismail's dominions in the Sudan and in futile conflicts with Ethiopia. In 1875 the impoverishment of the fellah had reached such a high point that the ordinary resources of the country no longer sufficed for the most urgent necessities of administration; and the khedive Ismail, having repeatedly broken faith with his creditors, could not raise any more loans on the European market. The taxes were habitually collected many months in advance, and the colossal floating debt was increasing rapidly. In these circumstances Ismail had to realize his remaining assets, and among them sold 176,602 Suez Canal shares to the British government for £ 976,582, surrendering Egyptian control of the waterway.

These crises induced the British government to inquire more carefully into the financial condition of the country, where they had many investments. In December 1875, Stephen Cave, MP, and Colonel (afterwards Sir John) Stokes, RE, were sent to Egypt to inquire into the financial situation; and Mr Caves report, made public in April 1876, showed that under the existing administration national bankruptcy was inevitable. European powers used Egypt's indebtedness to extract concessions. Other commissions of inquiry followed, and each one brought Ismail more under European control. The establishment of the Mixed Tribunals in 1876, in place of the system of consular jurisdiction in civil actions, made some of the courts of justice international. The Caisse de la Dette, instituted in May 1876 as a result of the Cave mission, led to international control over a large portion of the revenue. Next came (in November 1876) the mission of Mr (afterwards Lord) Goschen and M. Joubert on behalf of the British and French bondholders, one result being the establishment of Dual Control, i.e. an English official to superintend the revenue and a French official the expenditure of the country. Another result was the internationalization of the railways and the port of Alexandria. Then came (May 1878) a commission of inquiry of which the principal members were Sir Charles Rivers Wilson, Major Evelyn Baring (afterwards Lord Cromer) and MM. Kremer-Baravelli and de Blignires. One result of that inquiry was the extension of international control to the enormous property of the khedive.

Driven to desperation, Ismail made a virtue of necessity and accepted, in September 1878, in lieu of the Dual Control, a constitutional ministry, under the presidency of Nubar Pasha, with Rivers Wilson as minister of finance and de Blignires as minister of public works. Professing to be quite satisfied with this arrangement, he announced that Egypt was no longer in Africa, but a part of Europe; but before seven months had passed he found his constitutional position intolerable, got rid of his irksome cabinet by means of a secretly-organized military riot in Cairo, and reverted to his old autocratic methods of government. England and France, anxious about losing influence under this affront, decided to administer chastisement by the hand of the suzerain power, which was delighted to have an opportunity of asserting its authority. The Europeans and the Sublime Porte decided to force Ismail out of office. On the June 26, 1879 Ismail suddenly received from the sultan a curt telegram, addressed to him as ex-khedive of Egypt, informing him that his son Tewfik was appointed his successor. Surprised, he made no attempt at resistance, and Tewfik was at once proclaimed khedive.

Dual control

After a short period of inaction, when it seemed as if the change might be for the worse, England and France in November 1879, re-established the Dual Control in the persons of Major Baring and M. de Blignires. For two years the Dual Control governed Egypt, and initiated the work of progress that England was to continue alone. Its essential defect was what might be called insecurity of tenure. Without any efficient means of self-protection and coercion at its disposal, it had to interfere with the power, privileges and perquisites of a class which had long misgoverned the country. This class, so far as its civilian members were concerned, was not very formidable, because these were not likely to go beyond the bounds of intrigue and passive resistance; but it contained a military element who had more courage, and who had learned their power when Ismail employed them for overturning his constitutional ministry.

Among the mutinous soldiers on that occasion was an officer calling himself Ahmed Urabi. He was a charismatic leader who was followed by a group of fellow army officers and many amongst the lower classes. He became the centre of a protest aimed at protecting the Egyptians from the grasping tyranny of their Turkish and European oppressors. The movement began among the Arab officers, who complained of the preference shown to the officers of Turkish origin; it then expanded into an attack on the privileged position and predominant influence of foreigners, many of whom were of a by no means respectable type; finally, it was directed against all Christians, foreign and native. The government, being too weak to suppress the agitation and disorder, had to make concessions, and each concession produced fresh demands. Urabi was first promoted, then made under-secretary for war, and ultimately a member of the cabinet.

The danger of a serious rising brought the British and French fleets in May 1882 to Alexandria. Because of concerns over the safety of the Suez Canal and massive British investments in Egypt the Europeans looked to intervene. The French hesitated, however, and the British alone tried to suppress the revolt. On July 11, 1882, after wide spread revolts in Alexandria, the British fleet bombarded that city. The leaders of the national movement prepared to resist further aggression by force. A conference of ambassadors was held in Constantinople, and the sultan was invited to quell the revolt; but he hesitated to employ his troops against what was far more a threat to European interests.

Egypt occupied by the British

The British government decided to employ armed force, and invited France to cooperate. The French government declined, and a similar invitation to Italy met with a similar refusal. England therefore, acting alone, landed troops at Ismailia under Sir Garnet Wolseley, and suppressed the revolt by the battle of Tell-el-Kebir on September 13,1882. While this was meant to be only a temporary intervention, British troops would remain in Egypt until 1956.

The khedive, who had taken refuge in Alexandria, returned to Cairo, and a ministry was formed under Sherif Pasha, with Riaz Pasha as one of its leading members. On assuming office, the first thing it had to do was to bring to trial the chiefs of the rebellion. Urabi pleaded guilty, was sentenced to death, the sentence being commuted by the khedive to banishment; and Riaz resigned in disgust. This solution of the difficulty was brought about by Lord Dufferin, then British ambassador at Constantinople, who had been sent to Egypt as high commissioner to adjust affairs and report on the situation. One of his first acts, after preventing the application of capital punishment to the ringleaders of the revolt, was to veto the project of protecting the khedive and his government by means of a Praetorian guard recruited from Asia Minor, Epirus, Austria and Switzerland, and to insist on the principle that Egypt must be governed in a truly liberal spirit. Passing in review all the departments of the administration, he laid down the general lines on which the country was to be restored to order and prosperity, and endowed, if possible, with the elements of self-government for future use.

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