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because it seems evident to me that each of them seeks the exclusive possession of the Egyptian railways. In this state of affairs, and since our financial situation does not allow us to take part in similar types of operations, we could not let His Highness freely make up his mind according to his interests. With this I do not want to restrict nor change the instructions given by the Minister to Your Lordship so as to tell the Khedive at the appropriate moment, that in the present circumstances Italy will see with pleasure that the government of His Highness restrains from everything that could make it fall under the exclusive interests, which could not be exercised but at the expense of the position that Egypt by now must seriously think to assure. The improvement of the administrative orders and the reorganization of the finances of the State will certainly be the best precautions that the viceroyal government will be able to take into his own interest. But these measures are not enough if, with a prudent policy in its foreign relations, the government of the Khedive will not know how to stay independent from those exclusive interests which could jeopardize the future of the country. Attached here, You will see from, a copy of one of my messages sent today to the royal minister in Paris, the tone of my language on the occasion in which the Marquis of Noailles came to talk to about the conversations that Mr. Outrey had with Your Lordship and Senator Scialoja. I approve of the reservation that You had shown, on behalf of Your Lordship, in the conversations had with the French agent, and I likewise approve of the ideas that You had shown him. If another occasion presents itself so as to exchange some ideas with Mr. Outrey regarding the present situation in Egypt, my message with Knight Nigra and the matters contained in this message will help You to measure the tone to take. May it please you, etc.

Signed: Visconti-Venosta

VIII.

The Royal Agent and Consul General in Egypt to the Minister of Foreign Affairs (Il R. Agente e Console Generale in Egitto al Ministro degli Affari Esteri)

Minister,

The financial situation has not experienced a change until today. But I must believe for certain that the Viceroy will not arrange anything with the French group, whose conditions he assures to be exaggerated and unacceptable. Instead, the negotiations with the English group continue and, despite the mystery that surrounds them, I believe that I can confirm that it concerns an operation much more important than is said, and that it could have unifying the debt as a goal. Mr. Cave still declares that the English government is entirely foreign to the negotiations and to the operation proposed by the Elliot group. May it please you, etc.

Signed: G. De Martino