there must be friendly collaboration between us and that the aid of Great Britain was necessary to Egypt. They were well aware of the dangers which would menace them from other quarters if they stood alone. Their position was not an easy one. It was his desire to pursue the path of co-operation which I had indicated. We must try to prepare the way for the close co-operation which our circumstances required.

I told his Excellency that I was glad to find that he so fully shared my view of what the true interests of Egypt were and of the necessity for the closest understanding between our Governments. I did not suggest that we should carry on any negotiations during his visit in London, but might we not perhaps prepare the way for conversations between himself and Lord Lloyd when they had both returned to Egypt? He had spoken, for instance, of the army question. Obviously, as long as there was no agreement between us and so long as our right to keep an army of occupation in Egypt was disputed, or at least not recognised, we must view with a jealous scrutiny any increase in Egyptian military strength. The explanations which he had given of the desire of the Egyptian Government to make some increase in the numbers of the army and to reduce the period of military service were quite reasonable in themselves, but he must consider how they appeared to us. The real protection of Egypt against external danger was afforded by the guarantee of Great Britain and of the British fleet. As long, therefore, as our position was not frankly recognised by the Egyptian Government, it was almost unavoidable that any proposal by them to strengthen the army or the reserves or to improve their equipment should be regarded by us not as a measure of legitimate defence but as a preparation for, or at least a threat of, opposition to ourselves. If we had an agreement or an alliance, if he pleased-the whole situation would be changed. Our position would be recognised by Egypt and the interests of the two countries in the defence of Egypt would be concordant. We could then co-operate wholeheartedly with the Egyptian Government to make the army as efficient as possible. Again, there were questions in which Egypt took a special interest and where she desired from us some modification and abatement of our treaty rights, as, for instance, in respect of the Capitulations. Here, I frankly admitted, there were abuses which called for remedy and concessions which, with proper safeguards, we could afford to make, but it would be much easier to make them, and they might be on a more generous scale, if they were part of a larger arrangement which placed the relations of the two Governments on a permanently satisfactory footing. I would beg his Excellency to think over what I had said, and, if he felt during his stay in this country that we could usefully go further into the matter, I should be most happy to resume the conversation with him. Possibly he would be in a position to give me some indication of the lines on which he thought we might proceed. I repeated that I had no idea of entering into a negotiation with him. during this visit, but it might be useful if, before Lord Lloyd left, I B 3

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could give him rather more precise indications of the lines on which we might proceed than were contained in what I had just said to his Excellency.

Sarwat Pasha, in reply, expressed his sincere pleasure at the sympathy I had shown and repeated his agreement with all that I bad said as to the conditions which necessarily governed the relations of Egypt and Great Britain. He would consider whether there was anything more that he could say to me before he left London. In any case, he earnestly hoped that some such agreement as I had foreshadowed might be reached. The conclusion of such an agreement would indeed be a great work which would bring honour to the name of its author.

(Initialled)

A. C.

Foreign Office, July 13, 1927.

No. 2.

Memorandum by the Private Secretary to the Secretary of State, enclosing Draft Treaty communicated by Sarwat Pasha, July 18, 1927.

SARWAT PASHA called to see me this afternoon to communicate to me a draft of his ideas for the basis of a treaty of alliance with Great Britain.

I read the draft in his presence. As regards the final paragraph of article 6, I said that I observed that he had seen necessary to insert something on the question of the occupation. I enquired whether, from his point of view, this was indispensable, as I foresaw it would constitute a difficulty to the conclusion of a treaty of alliance. Sarwat Pasha assured me that some such clause was essential if he was to secure acceptance of the treaty in Egypt. The preliminary period which he had in view was some three to five years, after which his idea was that His Majesty's Government and the Government of Egypt should agree to the disposition of our military forces in Egyptian territory in the region of the Canal. He mentioned Port Tewfik as a possibility.

He emphasised the fact that, with the present means of communication available in Egypt and the development of technical warfare, he could not see what His Majesty's Government had to apprehend from Egypt if their troops were eventually confined to the region of the Canal and if our treaty of alliance were concluded. I told Sarwat Pasha that I would at once take steps to communicate his draft to the Secretary of State.

July 18, 1927.

W. SELBY.

Enclosure in No. 2.

Draft Treaty communicated by Egyptian Legation, July 18, 1927. (Translation.)

THE British Government and the Egyptian Government, anxious to consolidate the friendship and to maintain and perpetuate the relations of good understanding between the two respective countries, and considering that, in order to secure this object, it is desirable to give precision to the relationship between the two countries by resolving and defining the questions at issue-questions which have been the object of the reserves which His Britannic Majesty's Government considered necessary to make on the occasion of the declaration of the 28th February, 1922; that such a definition is the more indispensable inasmuch as any and every act of interference in the administration of Egypt is incompatible with the constitutional régime in force; have agreed upon and accepted what follows:

ARTICLE 1.

An alliance is established between the two countries in eternal consecration of their friendship, their cordial understanding and their good relations.

ARTICLE 2.

If, by reason of any attack or act of aggression whatsoever Egypt should find herself in state of war for the defence of her territory or for one of her interests, Great Britain would come immediately to her aid in the capacity of belligerent.

In view of this co-operation between the two armies, the Egyptian Government pledge themselves to carry out the instruction and training of the Egyptian army in accordance with the methods of the British army; should the Egyptian Government deem it necessary to have recourse to the services of foreign officers or instructors, they will choose them from among British subjects.

ARTICLE 3.

Great Britain undertakes to use all her influence with Powers having capitulatory rights in Egypt to obtain the substitution for the capitulatory régime now existing in Egypt of a régime more in conformity with the spirit of the times and with the present state of Egypt.

In view of the recognition of the right of Egypt to legislate for foreigners, the Egyptian Government recognise the right of Great Britain to intervene, through the intermediary of her representative in Egypt, in order to prevent the application of any Egyptian law whose application to foreigners is subject at the present time to the consent of the capitulatory Powers, and Great Britain undertakes on her side only to exercise this right in cases where the law would inequitably create a difference in treatment to the detriment of foreigners in fiscal matters, or if the law should be incompatible with legislative principles common to the capitulatory Powers.

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B 4

Special arrangements shall be made for the changes to be introduced in the present judicial organisation for the suppression of consular courts and the attribution of full jurisdiction to the Egyptian courts over the subjects of the capitulatory Powers.

ARTICLE 4.

Great Britain will use her good offices for the admission of Egypt to the League of Nations, and will support the request which Egypt will present to this effect.

ARTICLE 5.

In the event of Great Britain finding herself engaged in war, even if that war should in no way affect the rights and interests of Egypt, the Egyptian Government undertake to furnish to Great Britain all the assistance in their power, within the limits of their territory, including the use of their ports, aerodromes and all means of communication.

ARTICLE 6.

In order to facilitate and secure to Great Britain the protection of the lines of communication of the Empire, the Egyptian Government authorise His Britannic Majesty's Government to maintain a military force upon Egyptian territory. The presence of this force will in no way have the character of an occupation and will in no way prejudice the sovereign rights of Egypt.

This military force, after a period of

years, from the coming into force of the present treaty, will be quartered in

ARTICLE 7.

Egypt undertakes not to adopt in foreign countries an attitude incompatible with the Alliance or liable to create difficulties for Great Britain; not to oppose in foreign countries the policy followed by Great Britain and not to conclude with a foreign Power any agreement which might be prejudicial to British interests.

ARTICLE 8.

Egypt will appoint, in agreement with His Britannic Majesty's Government, a financial adviser with a view to conferring on him, when it shall be so desired, the powers at present exercised by the Commissioners of the Debt, and to his being at the disposal of the Egyptian Government for all other matters in regard to which they may wish to consult him.

ARTICLE 9.

In view of the future judicial organisation, the Egyptian Government will similarly appoint to the Ministry of Justice, in agreement with His Britannic Majesty's Government, an official, who shall be kept informed of all matters concerning the administration of justice.

in which foreigners are concerned, and who will be at the disposal of the Egyptian Government for all other matters in regard to which they may wish to consult him.

ARTICLE 10.

By reason of the special relations created between Great Britain and Egypt by the Alliance, the representative of Great Britain shall have the title of Ambassador; he shall be accredited in the ordinary manner of diplomatic representatives, and he will be given precedence over all other representatives.

ARTICLE 11.

While agreeing to defer the settlement of the question of the Sudan to further negotiations in which each of the two contracting parties shall have complete freedom to maintain their rights, the two Governments are henceforward in agreement to return to the status quo of before 1924 and to take as a basis, for the determination of the quota attributable to Egypt of the waters of the White Nile and the Blue Nile the conclusions of the report which has been prepared, with the modifications introduced therein, on the demand of the Egyptian Minister of Public Works; to recognise the right of the Egyptian Government to take all measures of control necessary for assuring a distribution of the waters in conformity with the rules laid down in the said report, and to have all facilities to carry out, at their expense, all the irrigation works along the course of the Nile, which were contemplated in the interests of Egypt in the said report.

ARTICLE 12.

The high contracting parties, although convinced that, by reason of the precise definitions laid down above as to the nature of the relations between the two countries no misunderstanding is to be anticipated between them, agree nevertheless, in their anxiety to maintain their good relations, that any disagreement on the subject of the application or of the interpretation of these provisions shall be submitted to the League of Nations, to whose decision the two contracting parties declare that they submit themselves henceforth.

No. 3.

Counter-draft approved by His Majesty's Government,

July 28, 1927.

His Majesty the King of Great Britain, Ireland and the British Dominions beyond the Seas, Emperor of India, and His Majesty the King of Egypt,

Being anxious to consolidate the friendship and to maintain and perpetuate the relations of good understanding between their respective countries,

And considering that in order to secure this object it is desirable to give precision to the relationship between the two countries by