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There is every reason to suppose that a special series of Crédit Foncier debentures required to produce 600,0001.—if secured upon a million's worth of Domain lands, and further secured by the guarantee of the Egyptian Government, and by the assignment (subject to the prior claim of the Domain Loan) of the securities hypothecated to that loan-might be issued on very favourable terms, and would be readily taken up by the constituents of the Crédit Foncier both in Egypt and Europe.
As soon as the Egyptian Government had got possession of the lauds purchased with the money advanced by the Crédit Foncier, they could proceed to sell the lands in question as fast as they could find satisfactory purchasers, and would employ the proceeds of such sales to cancel a corresponding amount of the debentures issñed by the Crédit Foncier on the security of these lands.
According to the most unfavourable estimates, the Domain lands may be con- sidered as worth to-day 70 per cent. of the value assigned to them in the Schedule of 1883. By the time. therefore, the sale of the Domain lands purchased with the million advanced by the Crédit Foncier had been complete-1, the Egyptian Government would have repaid some 700,0001, of the amount borrowed for this purpose, and would only remain indebted for an amount of some 300,0001, on account current, which amount might be paid off by instalments spread over a period of years,
If this first attempt to liquidate the Domain Loan-by purchasing lands from the Commissioners at the prices required to pay off the loan in full, and by reselling these lands to private purchasers at their real market value- should prové successful, the Crédit Foncier could advance a second million for a similar operation, and so on, till the final liquidation of the Domain Loan had been completed. The capital of the Crédit Foncier of Egypt is 3,200,0001, of which 800,0007 is paid up. By calling up, therefore, its unpaid capital, the Crédit Foncier would, if so disposed, be in a position to advance, upon account current, to the Egyptian Government, the successive amounts required to make up the differences between the 7,500,0001, which, roughly speaking, are required to pay off the Domain Loan at par, and the amounts which would be realized by the sale of each successive million's worth (nominal) of lands liberated by purchase.
It must be understood that the above figures are only given at present for the sake of illustration, in order to show the general character of the operation by which the Crédit Foncier might effectually assist the Egyptian Government in the liquidation of the Domains Loan. It would be premature to discuss the precise terms and condi- tions of such an operation as that contemplated till the Egyptian Government have made up their minds whether it is worth their while to make a sacrifice-and, if so, to what extent-in order to facilitate the release of the Domain lands from the hands of the present Administration and their return to public circulation,
Unless the Egyptian Government are prepared to mak such a sacrifice, the consideration of any scheme for the liquidation of the Doma Loans can lead to no practical result.
Cairo, January 12, 1886.
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(Signed)
EDWARD DICEY.
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