Control of Egypt

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History of the Suez Canal

The Suez Canal is a manmade waterway that connects the Mediterranean Sea and the Red Sea.

The Suez Canal connects the Mediterranean Sea and the Red Sea.
The Suez Canal cuts off the Sinai Peninsula (in Asia) from the African continent.
Prior to the construction of the Suez, ships had to sail around the south of Africa in order to reach the Indian Ocean.
The distance by boat from London to the Gulf of Arabia was reduced by approximately 5,000 miles.

Then Khedive of Egypt, Sa'id Pasha granted a concession to French architect Ferdinand de Lesseps in 1854 to build the canal.
British Prime Minister Lord Palmerston opposed the canal due to its effect on British trade, as well as scepticism on its suitability for large ships:
- "The British Government will use all the influence it possesses to frustrate the realisation of this project. "

The canal took 10 years to construct, during which Sa'id Pasha died and was succeeded by his nephew Isma'il Pasha.
The canal was primarily built by Egyptian forced labourers, which was outlawed in 1864 by a decree from Napoleon III.
The canal was opened in 1869.

In the second half of the 19th century, Britain began to gain a foothold in Egypt.

The opening of the Suez in 1869 rendered British trade posts in the Cape redundant, where stock for trading had been stored in British warehouses.
This contributed to an economic depression known as the 'Panic of 1873' which occurred in both Europe and North America.

By 1875, Isma'il Pasha's westernisation efforts led to Egypt accruing a large amount of national debt.
From Isma'il's accession in 1863 to 1875, Egypt's national debt went from around £7 million to £100 million.
In order to pay his debts, Isma'il sold 44% of his shares in the Suez Canal Company to British Prime Minister Benjamin Disraeli on behalf of the British government.
Disraeli was granted a private loan of £4 million from Lionel de Rothschild without obtaining parliamentary consent first.
This marked the beginning of an increased British presence in Egypt.

Isma'il was deposed in 1879 by the Ottoman Sultan Abdul Hamid II due to his economic mismanagement, with the support of both Britain and France.
His son, Tewfiq Pasha, was instead proclaimed as the Khedive of Egypt.
Tewfiq's reign was supported by British and French investment.
Measures were introduced to improve the Egyptian economy, such as:
- Taxation on goods was increased.
- The national army was reduced by two thirds.

The Egyptian people had continuously been ruled by foreigners, from the Ottomans to the Khedives and the increasing presence of Europeans.
This fuelled nationalist sentiments, leading to Colonel Arabi Pasha mounting an uprising in 1882 known as the Arabi Revolt.
Prime Minister Gladstone sent naval forces to bombard Alexandria, seeing the opportunity to increase the British presence in Egypt.
- High tensions resulted in the death of fifty Europeans on the streets of Alexandria in June 1882.

Britain defeated Arabi's Egyptian army at the Battle of Tel El Kabir on 13 September 1882, as well as securing control of the Suez Canal.
Tewfiq was installed by the British as a puppet ruler, meaning he acted as the head of state but was subject to Britain's whims.
Major Evelyn Baring was appointed as Consul-General of Egypt in 1883, which ensured British interests were catered for by Tewfiq's government.

Egypt was granted a loan during The Convention of London 1885, which confirmed Britain’s rule in Egypt as a ‘veiled protectorate’.
- A protectorate is a state that does not possess full sovereignty on its own but has been granted some autonomy by a greater state.
This meant that Egypt was effectively ruled by Baring, though it was not codified in law.