The Life of Gordon, Volume II. James D. Boulger
workable plan for the benefit of Egypt and her people would command such general approval that "the financial cormorants," as he termed the bondholders, or rather their leaders, would have to retire beaten from the field. He had no doubt that he could draw up such a plan, based on a suspension and permanent reduction of interest, and the result will convince any disinterested person of the fact, but Gordon was destined to find that all persons cannot be guided by such disinterestedness as his, of which the way he treated his Egyptian salary furnished such a striking instance. When sent to the Equator, he was offered £10,000 a year, and accepted £2000; as Governor-General, he was nominated at £12,000 a year, and cut it down to a half; and when, during this very Cairo visit, a new and unnecessary official was appointed under the Soudan Administration, he insisted that his own salary should be further reduced to £3000, to compensate for this further charge. Such an example as this did not arouse enthusiasm or inspire emulation in the Delta. General Gordon never dealt with a question in which abstract justice was deemed more out of place, or had less chance of carrying the day.
As the matter was very important, and interested persons might easily have misrepresented his part in it, General Gordon drew up a memorandum explaining every incident in the course of the affair. This document was published by his brother, Sir Henry Gordon, in 1886, and the following description merely summarises its contents.
As far back as the year 1875 the Khedive Ismail began to discover that the financial position of his Government was bad, and that it would be impossible to keep up the payment of the interest on the debt at the high rate of seven per cent., which Egypt had bound itself to pay. He therefore applied to the British Government for advice and assistance. In response to his representations, a Financial Commission, composed of three members – Mr Cave, Colonel Stokes, and Mr Rivers Wilson – was sent to Egypt for the purpose of inquiring into the financial position of that country. They had no difficulty in coming to the conclusion that it was unsound, and that the uneasiness of Ismail Pasha had not been expressed a day too soon. They recommended that an arrangement should be come to with the bondholders by which all the loans were to be placed on the same footing, and the rate of interest reduced to some figure that might be agreed upon. It then became necessary to negotiate with the bondholders, who appointed Mr Goschen for the English section, and M. Joubert for the French, to look after their rights. The result of their efforts in 1876 was that they united the loans into one, bearing a uniform rate of six per cent, instead of seven, and that four Commissioners were appointed to look after the debt in the interests of the bondholders, while two other European officials were nominated – one to control the receipts, the other the expenditure. In less than two years Ismail Pasha discovered that this arrangement had not remedied the evil, and that the Government was again on the verge of bankruptcy. It was at this juncture that the Khedive applied to General Gordon, in the hope that his ability and reputation would provide an easy escape from his dilemma.
General Gordon agreed to accept the post of President of this Commission of Inquiry, and he also fell in with the Khedive's own wish and suggestion that the Commissioners of the Debt should not be members of the Commission. This point must be carefully borne in mind, as the whole negotiation failed because of the Khedive's weakness in waiving the very point he rightly deemed vital for success. Having laid down the only principle to which he attached importance, the Khedive went on to say that M. de Lesseps would act in conjunction with General Gordon, and that these two, with some vague assistance from financial experts, were to form the Commission. It soon became evident that M. de Lesseps had no serious views on the subject, and that he was only too much disposed to yield to external influences.
On the very threshold of his task, which he took up with his usual thoroughness and honest desire to get at the truth, General Gordon received a warning that the greatest difficulties were not those inherent to the subject, but those arising from the selfish designs of interested persons. As soon as it became known that General Gordon had accepted this task, and that he had agreed to the Khedive's suggestion that the Debt Commissioners were not to sit on the Commission, there was a loud outburst of disapproval and dismay in diplomatic and financial circles. This part of the story must be given in his own words: —
"Mr Vivian, the English Consul-General, said to me, 'I wonder you could accept the Presidency of the Commission of Inquiry without the Commissioners of the Debt.' I said, 'I was free to accept or refuse.'
"I then called on the German Consul-General, and when there the French and Austrian Consuls-General, and also Vivian, came in, and attacked me for having accepted the post of President. I said 'I was free.' And then they said, 'I was risking his Highness his throne; that he ran a very serious risk personally, if he formed the Commission of Inquiry without the creditors' representatives, viz. the Commissioners of the Debt.' I said, 'Why do you not tell him so?' They said, 'You ought to do so.' I said, 'Well, will you commission me to do so, from you, with any remarks I like to make as to the futility of your words?' They all said, 'Yes, we authorise you to do so – in our names.'"
General Gordon went that evening to the Abdin Palace, where he was engaged to dine with the Khedive; and having asked permission to make an important communication, saw Ismail before dinner, when words to this effect were exchanged: —
Gordon said: "I have seen the four Consuls-General to-day, and they told me to tell your Highness from them that you run a serious personal risk if you have a Commission of Inquiry without the Commissioners of Debt being upon it."
The Khedive replied as follows: "I do not care a bit. I am only afraid of England, and I feel sure she will not move. You will see Lesseps to-morrow, and arrange the enquête with him." Encouraged by the Khedive's firmness, and fully convinced that no good result would follow if the Debt Commissioners, who only considered the bondholders' interests, were on this inquiry, Gordon met Lesseps the next morning in the full expectation that business would now be begun. The further ramifications of the intrigue, for it soon became one, for the discomfiture and discrediting of Gordon, must be told in his own words:
"The next day Lesseps came to my Palace with Stanton (Stokes's old Danube Secretary, now Resident-Commissioner for the British Government Suez Canal Shares at Paris, an old friend of mine). Lesseps began, 'We must have the Commissioners of the Debt on the enquête.'
"I said, 'It is a sine quâ non that they are not to be upon it.' Lesseps replied, 'They must be upon it.'
"Then in came Cherif Pasha (the Premier), and said, 'Are you agreed?' I left Lesseps to speak, and he said, 'Yes,' at which I stared and said, 'I fear not.' Then Lesseps and Cherif discussed it, and Lesseps gave in, and agreed to serve on the Commission without the Commissioners of the Debt, but with the proviso that he would ask permission to do so from Paris. Cherif Pasha was pleased.
"But I instinctively felt old Lesseps was ratting, so I asked Cherif to stop a moment, and said to Stanton, 'Now, see that Lesseps does not make a mess of it. Let him say at once, Will he act without the Commissioners of Debt or not? Do this for my sake; take him into that corner and speak to him.' Stanton did so, while I took Cherif into the other corner, much against his will, for he thought I was a bore, raising obstacles. I told him that Lesseps had declared before he came that he would not act unless with the Commissioners of the Debt. Cherif was huffed with me, and turned to Lesseps, whom Stanton had already dosed in his corner of the room, and he and Lesseps had a close conversation again for some time; and then Cherif came to me and said, 'Lesseps has accepted without the Commissioners of the Debt.'
"I disgusted Cherif as I went downstairs with him by saying, 'He will never stick to it.'"
If Gordon was not a diplomatist, he was at least very clear-sighted. He saw clearly through M. de Lesseps, who had no views on the subject, and who was quite content to play the part his Government assigned him. A few minutes after the interview described he obtained further evidence of the hostility the projected inquiry without the Commissioners had aroused. He met Major Evelyn Baring, then beginning the Egyptian career which he still pursues as Lord Cromer, who was desirous of knowing what decision had been arrived at. On hearing that the Commissioners were to be excluded, Major Baring remarked, "It was unfair to the creditors," which seems to have drawn from Gordon some angry retort. There is no doubt that at this moment Gordon lost all control over himself, and employed personalities that left a sore feeling behind them. That they did so in this case was, as I am compelled to