Printed papers on the political situation and military policy in Egypt [‎11r] (21/176)

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neutralised, and vessels of all nations, whether armed or not, may pass through in
peace or war.
101. The Suez Canal Company is registered under Egyptian Law as an Egyptian
Company with headquarters at Paris. At first the Administration was entirely
French, but owing to the preponderance of British ships and the acquisition by His
Majesty’s Government in 1875 of shares to the value of 4 millions. British Directors
, were admitted on the board, and the Council of Administration now consists of
thirty-two Directors, of whom ten are British and the remainder French. Of the
British, three represent His Majesty’s Government and seven the ship owners
* 102. In 1915 the Commander-in-Chief, East India and Egypt, remarked as
follows:—
“The position of the Canal Company is in many respects unique. They
“are an international Corporation and in ordinary times practically enjoy
“extra-territorial rights, acknowledging no authority in the conduct of their
“own business, other than that of their Directors. It is, therefore, easily to
“be understood that it must have been galling to them to have to submit to
“outside control when the Canal became the scene of hostilities. It entailed
“a complete reversal of their usual habit of mind, and it is a great testimonial
“to the loyal co-operation with which they have accepted the situation that
“our relations with them should have been all through so uniformly cordial.”
103. During the war, however, the Canal administration got used to the idea
of British control, and gradually got more and more into the habit of relying on the
assistance of the British for assistance in emergency.
The extent of this reliance can be gauged by perusal of the Foreign Office
Memorandum on the Suez Canal Convention dated the 1st July, 1922 (F.O. Paper,
E. 6536/1/16), attached as Appendix III to this paper.
The result is that most cordial relations were established between the British
' authorities in the Canal Zone, and the Suez Canal Administration. It is under
stood that the relations at Paris between the British representatives at Paris and
the Suez Canal Directorate are equally good.
* 104. The following extract from a letter from Sir Tan Malcolm to the Foreign
Office, dated the 11th December, 1922 (F.O. Paper, E. 13999/391/16), throws light
on this question :—
“1. In conversation with our principal agent in Egypt, Comte de
“Serrionne, K.C.M.G., I learned that* he found it increasingly difficult to do
“business with the Egyptian Government now that British officials of the
“highest class are retiring from the Egyptian Service. He assures me that,
“ at every turn, he finds the British officials replying in these terms: ‘ We are
“ ‘out of it now. so it is no use your coming to us’; whilst the Egyptians say :
“ ‘We are not yet entirely independent, therefore you cannot expect us to do
“ ‘anything to help you.’ A further difficulty, arising from the present transi-
“ tion stage in Egyptian administration, is caused by the fact that the Suez
“ Canal work has been transferred from the Finance Minister (who dealt with it
“until the beginning of the present year) to a new Ministry of Transport and
“ Communications, which has not yet made itself acquainted with our affairs,
“and which is inclined to treat the Suez Canal (and this is probably the real
“reason for the transfer) merely as an Egyptian waterway.”
105. It is in connection with the passage of a large British Fleet through the
Suez Canal on or before the outbreak of war and the precautionary steps necessary
to ensure that the free passage of the Canal is not impaired, that the attitude of the
, “Canal Administrative” authorities calls for special consideration.
106. The Canal Administration is essentially French, and is manned almost
exclusively by French personnel. The higher posts are filled entirely by Frenchmen
♦ and admission to these posts is confined to a comparatively small ring.
It is only in the Pilot Service that men of other than French nationality are
found in any numbers.
107. During the late war our alliance with France ensured as a general rule the
cordial official co-operation of the Canal Administration. National sympathy,
mutual tact, and the imminence of a common threat from the East cemented this
co-operation and ensured all our requirements being readily met.
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