Egypt & the British Empire

Egypt and Sudan had the power to govern themselves within the Turkish Empire. This is whilst under the Khedive, Ismail Pasha (until 1879), who ran affairs in Egypt for the Sultan in Constantinople

Due to the decline of the Ottoman Empire, France encourages Egypt to break away so they could claim them and develop the Suez Canal

in 1854, France obtained permission from the Khedive to create canal that connected the Mediterranean to the Red Sea, and would be accessible to all nations.

"What we wish about Egypt is that it should be attached to the Turkish (Ottoman) Empire, which is security against it belonging to another European power. We wish to trade with Egypt and travel through Egypt."

Egyptian debt grew from £3 million to £100 million due to the Khedive's eccentric spending. interest rate on the debt grew from 7% to 20%.

The Khedive sought to sell shares of the Suez Canal. To secure interest in the canal, Disraeli used a secret £4 million loan from the Rothschild banking family, bypassing Parliament and the Bank of England, to gain a 44% stake in the canal,

By 1875, 80% of the boats along the canal were British. This is because it provided a faster route to India and the Far East (Commercially & Strategically vital)

Egyptian debt threatens economic collapse so the Khedive turns to France & Britain for help.

Cave report states that Egyptian debt was "the result of poor economic management by Egyptian Government."
Anglo-French plan established "dual economic control";
-Britain responsible for raising revenue (in)
-French responsible for Government spending (out)