$2 *•••-'• i«i i ••"» . $ •-. •"• -} r- ;r-i-.No. 14. " •' '"' *'"•'' Telearam /wwn Lord Lloyd to Sir Austen Chamberlain, March, 4, 5,.,,;..^„.. • r .-:' js ;j rtii 1928. .. . , ,. , •...,.„! .- ... ' • •'. . • *i • * . . My immediately preceding telegram. Following is translation from the French :— "Excellency, . .. . "I have the honour to inform you that in accordance with tne wish expressed by his Excellency Sir Austen Chamberlain mthe \ message which he was so good as to address to me through you, I have submitted to my colleagues draft Treaty of Alliance which .-

' Egypt No. 2 (1928) resulted from our conversations last summer, at the same time acquainting them with different phases of these conversations ' as well as with the notes exchanged and discussions carried on • subsequently. . •' "My colleagues have reached the conclusion that draft, Dy V : PAPERS reason both of its basic principles and of its actual provisions, is ' incompatible with the independence and sovereignty of Egypt <• respecting the

• and, moreover, that it legalises occupation of the country by • British forces. '' . "My colleagues have accordingly charged me to mlorm Mis proposed Egyptian Law Britannic Majesty's Principal Secretary of State for Foreign Affairs that they cannot accept thisdraft. "I shall be grateful if your Excellency will be so good as to regulating Public Meetings communicate the above to his Excellency Sir Austen Chamber lain and will at the same time repeat to him my most sincere thanks for the friendly spirit in which his Excellency began and and Demonstrations carried on our conversations. "I take this opportunity..of thanking your Excellency also • for the cordiality which you have shown in the course of our • discussions,regarding draft treaty and to renew,', &c. . , . .... ! : •~ ..-•-.• \i •••••• ••• • i ' ' " '• ••' •'' .-,,*••„! .•. .•• , i • •• • •'.'•' ' • Presented by the Secretary of State for Foreign Affairs • to Parliament by Command of His Majesty r 1; • .. ..

•'

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. • LONDON: '• •.- I •PRINTED AND PUBLISHED BY HIS MAJESTY'S STATIONERY OFFICE . To be purchased directly from II.M. STATIONERY OFFICE at the following addresses: Adastral House, Kingsway. London, W.C.2; 120, George Street, Edinburgh; York Street, Manchester; 1, St. Andrew's Crescent, Cardiff; • 15, Donegall Square West, Belfast; or through any Bookseller. k .:• .• •••''.•• •• '"'• :-" " 1928

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COLONIALISM RENEGOTIATED, 1920-1930

port the bank in 1920 but it also formed a powerful lobby CHAPTER FIVE the same year, the Egyptian General Agricultural Syndicate, Colonialism Renegotiated, 1920-1930 to pressure the government to follow policies favorable to its interests. The period between 1920 and 1939 made many of the con fl tradictions inherent in the growth of the cotton economy i manifest. The most obvious problem was the drop in the The establishment of the Bank Misr in April 1920, with a price of cotton. Using 1913 as a base of 100, the index reached share capital of£E 80,000 and its subsequent growth during 220in 1925 and 148in 1929. Taking 1934 as 100,prices reached the next two decades into an extensive holding company with a level ofjust over 90 during the early part ofthe Depression a share capital of over four million Egyptian pounds repre between 1930 and 1933, rose to 113 in 1937 and dropped to sented a remarkable achievement. The collapse of the Misr 92 in 1938. Through the Egyptian General Agricultural Syn Group at the outbreakof thesecond worldwar, whichbrought dicate, the large landowning class pressured the government its dynamic expansion to a halt, demonstrated that the in to restrict the amount of land planted with cotton and to dustrialization fostered by the bank was fraught with many purchase and store the cotton harvest until price levels im contradictions. What were the factors that facilitated the in itial expansion of the Bank Misr and its companies and what proved. Since the Egyptian crop represented only a small percentage of total world production, such efforts had little were the constraints that ultimately thwarted its aim of cre impact on the international cotton market. The importance ating a self-sustaining industrial sector in the Egyptian econ of cotton to the Egyptian economy can be seen in the fact omy? A key to answering this question is the realization that that it continued to account for the lion's share of export the two main social forces that accounted for the bank's ini receipts. In 1930, cotton represented 92 percent of total ex tial success were the same forces that later undermined its port receipts while in 1939 this figure still accounted for 72 economic viability. Most conspicuous in this regard was the percent of such receipts.1 support the Bank Misr received from the large landowning The figures concerning the total amount of cultivatable and class and the Egyptian nationalist movement. cropped land bear further witness to the inability of the agri An examination ofthe 125 original subscribers to the Bank cultural sector to sustain further growth following the first Misr shows that 92 percent of the share capital came from world war. Between 1877 and 1914, the amount of cultivat subscribers who were large landowners. The agrarian bourgeoisie's support of the idea of a national bank stemmed able land expanded by 5.6 percent while between 1915 and 1939 this figure was only one-half of one percent. Cropped from its desire to free itselffrom the control of foreign banks area increased 35.7 percent between 1877 and 1914 but only and to assure the availability of credit. However, it was the 7.4 percent between 1915 and 1939.2 difficulties besetting cotton cultivation following the first As a result of the rapid expansion of output during the late world war which intensified such support. Many landowners 1800s and early 1900s, Egyptian agriculture suffered a decline came to see the need to diversify their economic base by shifting a portion of their capital into industrial enterprise. in soil fertility during the inter-war period. Investment in new drainage systems did not keep pace with the construc- Their support of the Bank Misr in 1920 was not just an expression of personal ties with Tal'at Harb but rather was 1Zvi Hersclilag, Introduction to the Modem History of the Middle East (Lei part of an ever increasing awareness of their collective eco den: E. J. Brill, 1964), pp. 222-223. 2Samir Radwan, p. 270, percentages computed from Table A-10. nomic interests. Not only did the agrarian bourgeoisie sup- 109 108 f

COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930

tion of new dams and barrages. The first crop to suffer from fable 5-1 these conditions was cotton. Since the root system of the Uiidownership for the al-Shuray'I, 'Abd al-Raziq and Khallfa-Marzuq-Ahmad-Isma'fl Families, cotton plant penetrates the soil more deeply than those of 1920-1940 Khallfa-Marzuq- Ahmad- Egypt's other major crops, cereals and sugar cane, it was al-Shuray'I Family 'Abd al-Raziq Family lsmau more adversely affected by the rise in the level of the water Faddans/ Faddans/ Faddans/ table. The cotton crop was harmed by two other factors. Year Land Owners Owner Land Owners Owner Land Owners Owner First, there was a tendency for many of the new varieties of 1920 1407 19 74.1 1182 16 73.8 1021 27 37.8 cotton which were introduced during the nineteenth and 1930 1650 41 40.2 1202 35 34.3 1139 34 33.5 twentieth centuries to lose their high quality yields ten to 1940 1364 40 43.1 1297 35 37.1 1081 46 23.5 fifteen years after their introduction. Secondly, cotton suf Source: Land registries for Abu Girg and BanI Ahmad, al-Minya Province, 1920-1941. fered in being the only crop which was subject to large-scale attacks by pests.3 All of these problems, which combined to bring about a 1930s. While land fragmentation was most pronounced among decline in cotton yields prior to 1914, were exacerbated by small landowners, the large landowning class was not im mune to it. Although the percentage of land owned by hold the war. V ers with less than five faddans increased from 19.9 percent in h •During the first world war most of the schemes set in 1896 to 31.5 percent in 1936, the amount of land held by motion to halt the decline in cottonyields came to a stand- owners with more than fifty faddans decreased from 43.8 ' still. Among these, the postponement of drainage projects percent to 36.6 percent during the same period.5 A popula in the north Delta was undoubtedly the most important. tion increase of29.1 percent between 1917 and 1937 affected ... At the same time, the war itselfinevitably produced the agrarian bourgeoisie as well as the lower classes as is an adverse effect on Egyptian agriculture as a whole. Peas evident from the patterns of landownership between 1920 ant cultivators, as well as their animals, were recruited into and 1940 for three ofthe most prominent families supporting the Egyptian Labour Corps; imports ofchemical fertilizers the Bank Misr. Although the data in Table 5-1 did not in declined, while fields received less manure than usual due dicate any drastic decline in the status of the large landown to a decrease in the numbers of cattle, and much of the ing family, they did point to a threatening future. dung which remained had to be used as fuel to compensate In addition to declining soil fertility and a tendency toward for a shortage of oil; the tendency to over-water the fields land fragmentation as a result of population increase, Egyp increased as a result of the wide use of free-flow irrigation tian cultivators suffered from a decline in demand in the world made necessary by the difficulty in running coal-powered market for Egyptian cotton. Whereas cotton prices had ex pumps.4 perienced an almost uniform increase prior to 1914, they be In addition to the difficulties besetting the cotton crop, the gan an erratic period ofdecline after the first world war. The tendency toward land fragmentation served to further erode rapid expansion of cultivatable land likewise ceased after 1914. the position ofthe agrarian bourgeoisie during the 1920s and Thus new land to accommodate the increased number.of family members in large landowning families was in short i E.R.J. Owen, "Agricultural Production in Historical Perspective: ACase supply. Despite a dramatic decline in the number of foreign Study of the Period 1890-1939." in P. J. Vatikiotis (ed.), Bgfpl Since the employees in the state bureaucracy after the war, govcrn- Revolution (New York: Praegcr, 1968), pp. 56-57. * Ibid., p. 59. s Baer, Landownership, pp. 80-81.

110 Ill "'~&~

COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930 mcnt employment became increasingly difficult to obtain, movement to found a national bank failed to receive before thus failing to provide an outlet for the growing number of the revolution the national support it received after it. Un family members. Given the stagnant nature of the agricul doubtedly, this can be traced back to the general spirit of tural sector, many Egyptians, such as Tal'at Harb, saw the the revolution which, having generated a spiritual force in necessity of developing domestic industry. the hearts of the people, guaranteed the success of the While the socio-economic trends prior to and following movement to found the Bank Misr.7 the first world war pointed to the inevitability of the found ing of a national bank, the direct catalyst for this develop An extensive analysis of the 1919 Revolution has yet to be ment was the 1919 Revolution. Even though plans to open written but it is possible to offer a number of explanations of its origins and social bases. Much of the climate for the a national bank were under study prior to the uprising, the revolution encouraged Tal'at Harb and his supporters to bring revolution can be attributed to the British who raised expec their idea to fruition. Not only did the revolution hasten the tations that the Protectorate and occupation of Egypt would opening ofthe Bank Misr but the subsequent nationalist sup be ended following the war. In an attempt to prevent the port for the bank was crucial in keeping it solvent during its Arabs from supporting its enemy, Ottoman Turkey, Britain critical first year of operations. The constant references to issued numerous declarations ofprinciple during the war that the Bank Misr in the news media as a national project (mashrii' stressed the rights ofpeoples in the Middle East to independ watant) and as representative of Egypt's attempts to achieve ence and self-determination. The Versailles Peace Conference economic independence (al-istiqldl al-iqtisddt) were indicative and Wilson's Fourteen Points served to underline the theme of self-determination. However, when the war ended, Brit of the extent to which it was viewed in nationalist terms.6 As the well-known Egyptian historian, al-Rafi'i, himself a ain refused to grant independence to Egypt and barred an supporter of the Bank Misr, noted: Egyptian delegation, headed by the nationalist leader, Sa'd Zaghlul, from attending the Versailles Conference. British It is clear that the founding of the Bank Misr is the nucleus policy after the war evoked much hostility since Egyptians of the financial and economic Renaissance which, having ofall social strata had contributed to the Allied war effort by begun after the first world war, was the economic result serving in the British army. of the revolution. The general spirit created by the revo Of even greater importance than British declarations in lution was responsible for the success of this movement. creating a revolutionary consciousness were economic con This can be seen if we return to the recent past. The move ditions in 1919. Especially important was the British cotton ment to found a national bank first began during the time policy during the war. After two cotton harvests in 1914 and of the 'Urabi Revolution and then was revived prior to 1915 turned out to be disasters as the result of a drop in the first world war, more than ten years before the 1919 prices, the Egyptian government, at the order of the British Revolution. However, it did not receive the support of the Financial Adviser, set cotton prices at artificially low levels nation that would have insured its success. ... Thus the for the remainder of the war. Al-Rafi'i estimates that culti vators lost 32 million pounds in 1918 alone. Many peasants ♦ See articlesin al-muqattam, April 4, 1920; al-watan, March 18, 1920, Oc were forced to sell their livestockand family jewelry to make tober 15, 1920, April 10, 1921; al-akhbdr, March 18, 1920, May 5, 1920, ends meet. The fact that the Alexandrian cotton exporting October 14. 1920; al-ajkdr, April 11, 1920; misr, July 9, 1920, January 5. 1922,January 25, 1922, February 5, 1922; al-liwa al-misri, August 24, 1921; 7'Abd al-Rahman al-Rafi'i, thawrat sanat 1919 [The 1919 Revolution] 2nd al-nizdm, April 20, 1920; and wddi al-nil, November 8, 1919. edition (Cairo: al-Nahda al-Misriya Press. 1955). vol. 2, p. 259.

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COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930 firms were entirely foreign owned and frequently paid less cational philosophy. In contrast to other areas of the higher than the official price for a qintar of cotton only intensified education system where the influence was strongly British, antiforeign feeling.8 the law school eschewed an empirical orientation and instead In rural areas, cultivators found commercial banks restrict laid emphasis upon placing facts and problems within a broad ing their local operations and tightening credit. Mortgage theoretical framework. According to 'Abd al-Rahman Ha- banks pressed for repayment of loans even though the gov mada (Pasha), the former managing director of the Misr ernment declared a moratorium on bank debts in 1914.9 Once Spinning and Weaving Company and one of Egypt's most 3gain moneylenders began to expand their activities, further prominent engineers, graduates of the law school tended to antagonizing the peasantry.10 Conditions in urban areas were be more politicized than graduates of other professional schools likewise harsh due to the inflation which accompanied the where the system was narrower in focus.12 Another factor war. According to the Milner Commission, which was es influencing nationalist feelings was the attempt by the French tablished to investigate the causes of the 1919 Revolution, faculty, prior to the Anglo-French Entente of 1904, to en the steep rise in the price of essential commodities such as courage anti-British sentiment among their students. The cereals, cloth and fuel severely undermined the standard of considerable surplus of lawyers which developed prior to the living of the urban middle class while reducing the urban first world war and the diminished prospects of finding em poor to a state of destitution.11 ployment also served to mobilize students behind the nation alist movement. The demand for political and economic in •. A major factor behind the outbreak of the 1919 violence dependence from Great Britain by the media and the agrarian was the growth of the urban middle class as a result of the bourgeoisie further politicized not only law students but the migration of sections of small landowning families to urban student population as a whole.13 , areas during the latter part of the nineteenth and early part A central element in the 1919 Revolution was the urban of the twentieth centuries. With the increased demand for student population which was drawn from professional fac technical and professional skills which accompanied the ex ulties, particularly the law school. The more well-to-do of pansion of the infrastructure, many ofthe offspring of these these students comprised the majority of small investors in families entered the expanding educational system where they share capital accounting for 75 percent of all purchases less were radicalized by nationalist ideas. than 100 shares.14 That this investment pattern was indeed While nationalist feeling ran high among all sectors of the caused by the 1919 Revolution is evident from the fact that student population, this was particularly true of students in at no time in the future did students and professionals con the Khcdival Law School (originally founded by Muhammad tribute such a relatively large percentage of the share capital 'All Pasha as the School of Languages and Administration). to any of the bank's firms. Subsequent decrees of companies Since the Egyptian legal system was based upon the French founded by the Bank Misr show that a relatively small group code, the law school was heavily influenced by French edu- of landowners, cotton merchants and government bureau crats accounted for the largest percentage of private invest «ibid., vol. 1, pp. 74-75, 79. 9Ibid., p. 75; A.G.M. Dickson to the Governor ofthe National Bank of ment. Egypt. May 27. 1950. St. Antony's College, Oxford. Middle East Archives. The importance for the success of the Bank Misr of the ,ual-Ran'i. 1919, vol. 1, p. 74. '2 Interview with 'Abd al-Rahman Hamada (Pasha), July9, 1974. " F.O. 141/780/8878, Milner Mission Reports. 1919-1921; al-Uafi'I, 1919, » Goldschmiclt, pp. 310-312. 328. vol. 1, p. 77. 14 Bank Misr, Bureau of Economic Research, al-ytibil al-dluthabi, p. 154.

114 115 COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930 students who participated in the nationalist movement can TABLE 5-2 not be exaggerated. As nationalist agitation intensified fol Bank Misr Deposits, 1920-1929 lowing the 1919 Revolution, British repression increased un Average til Sa'd Zaghlul and leading members of the Wafd party (who End of Deposits Holdings % Increase had been demanding immediate independence and an end to Year (£E000) Accounts (£E) in Deposits the British Protectorate) were arrested and sent into exile in 1920 201 492 409 the Seychelles Islands during the summer of 1921. In re 1921 405 1,717 236 101.5 1922 981 5,114 192 142.2 sponse, the Wafd organized aboycott of British trade at the 1923 1,769 8,705 203 80.3

• end ofthe year. In January of1922, students in faculties of 1924 2,624 12,795 205 48.3 higher education and secondary schools, in Cairo and Alex 1925 3,190 17,710 180 21.6 andria as well as in the provinces, formed boycott commit 1926 4,425 23,680 187 38.7 tees which had two goals. First, they sought to persuade the 1927 5,518 29,335 188 24.7 1928 6,733 34,218 197 22.0 populace to boycott all British firms and purchase commod 1929 7,250 39,694 183 7.8 ities only from "national stores" (al-mahalldt al-tijdriya al-wa- Source: Adapted from Radwan, p. 185. tamya) such as al-Gamal, al-Mawardi and Shikuril. Secondly, these committees called upon Egyptians to withdraw their funds from British banks and deposit them in the Bank Misr.15 members of student committees who traveled to the prov The success of the boycott in promoting the growth of the inces to agitate for the boycott were frequently drawn from i rural notable families. It is significant that the activist ele Bank Misr can be seen from an examination of its deposits. • '• As Table 5-2 illustrates, the greatest percentage increase in ment among students involved in the Wafdist boycott was deposits occurred between 1921 and 1922, i.e. during the pe of upper middle class or upper class origins. This is clear in riod of the boycott. The decline in the average holding of the case of student delegations that visited Asyut, al-Minya, the Bank Misr's accounts from £E 409 in 1920, to £E 236 in BanI Swayf, al-Qalyublya and al-Sharqlya provinces.16 1921 and to £E 192 by the end of 1922 tends to substantiate Student activities helped augment the capital of the Bank Misr in other ways. In addition to the boycott committees, the notion that the 1919 Revolution and subsequent nation students formed Committees to Aid the Bank Misr (lajun li alist agitation recruited less prosperous depositors, such as mu'dwanat bank misr), both at the university and secondary small merchants, professionals and students, as opposed to school level, which then competed with one another to sell the wealthy landowners who accounted for the largest share the most shares. A prize, which consisted of a certain num of the bank's initial share capital and deposits. ber ofbank shares, was awarded to the most successful school. Scrutiny of student activities during the 1922 boycott draws Thirty-two schools in Cairo and Alexandria and ten in the attention to the interrelationship between the two social forces, provinces participated in the competition.17 Secondly, these the large landowning class and the nationalist movement, urban schools sent delegations to the countryside whose aim which contributed to the success of the Bank Misr. While was to persuade local notables to purchase substantial amounts the majority of students who participated in the nationalist of the Bank Misr's shares. As with the boycott committees, movement were of middle or lower middle class origins, these committees were highly successful as they were often " al-muqattam, January 21. 1922, January 24, 1922, February 17. 1922; aU 16 al-muqattam, February 3, 7. 22. 28. 1922. ahrdm, January 3, 1922, February 28, 1922; misr, January 24, 1922. 17 al-nizd^, February 16, 1922.

116 117 ""'-. t*r

COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930 Ma'mun Effendi Qandil, a cotton merchant from al-Mahalla headed by students oflocal notable families. Thirdly, the ac al-Kubra, HanafT Bek Mansur, a merchant from Aswan and tivities of the more prominent urban schools, which were 'All Lahayta, the most prominent merchant of Port Sa'id, highly publicized in the press, encouraged other groups and just to cite a few examples.21 In addition to these activities organizations to support the Bank Misr.18 by rural and urban notables, the most powerful economic While student committees were being formed, many rural organizations of the large landowning class, the Egyptian notables were also creating committees or individually sell General Agricultural Syndicate, called upon the Egyptian ing shares in the Bank Misr in their respective provinces. A government to channel agricultural credit through the Bank coordinating committee known as the "Committee to Un Misr.22 derwrite the Share Capital ofthe Bank Misr" (lajnat taghtiyat Augmenting the support ofstudent groups and the agrar ashUm bank misr) was formed in Cairo in January of 1922. ian bourgeoisie was that of the chambers of commerce formed The coordinating committee attempted to organize branches by merchants throughout Egypt following the 1919 Revo in every province under the leadership of local notables.19 lution. While it does not appear that these organizations were Subcommittees were formed in al-Gharbiya and al-Fayyum actively involved in selling stock subscriptions in the Bank provinces and in the provincial cities of Zaqazlq, Bani Swayf Misr, the chambers were staunch advocates of the boycott and al-Mansura. and issued many declarations calling for the withdrawal of The al-Fayyum Committee was headed by one ofthe most funds from foreign banks and their deposit in the Bank Misr.23 wealthy landowning families of the province, the al-Bahnis Their demand that the Bank Misr replace the British con family, while the parent committee in Cairo was headed by trolled National Bank of Egypt as the state bank was of great 'Abd al-Sittar al-Basil, a representative of the most promi significance. Comparisons between the prestigious National nent family ofthe province. In al-Daqahllya province, a group Bank of Egypt and the newly formed Bank Misr enhanced of notables met in the al-Mansura National Club in Febru the latter's prestige among the populace at large and no doubt ary, 1922, and purchased 760 shares. Among them were encouraged hesitant Egyptians (who were known for their members ofsuch prominent landowning families as the Fuda, preference for walls and floorboards over bank vaults as re al-ltribi, Nur, al-Tanm, al-Shanawi, 'Abd al-Nabi and 'Abd positories for their savings) to purchase shares and open de al-Raziq families.20 In addition, Bank Misr shares were sold posit accounts in the bank. Many merchants argued that the by notables in their homes or places ofbusiness in the prov growth of the Bank Misr was crucial if Egypt was to estab inces. Among these were the well-known firm ofBadawi al- lish and expand native industries. 'Abd al-Majid al-Ramall, Shayti Sons ofJanta, the prominent cotton merchant, 'Abd the Secretary of the Cairo Chamber of Commerce, asserted al-'Aziz Radwan ofZaqazlq, Egypt's most famous historian, that if every Egyptian were able to purchase one share of 'Abd al-Rahman al-Rafi'i, of al-Mansura, the al-Wakils, Bank Misr stock, the resulting capital would be sufficient to landowners and cotton merchants in Damanhur, Sayyid Mu fund the industrial projects which the bank sought to under hammad Khashaba, merchant and landowner in Asyut and take.*• It is significant that support for the Bank Misr came BanI Swayf, 'AH Islam, cotton merchant from Bani Swayf, primarily from nationalist merchants who were involved in Sariiffm Bek MIna 'Abayd, a large landowner from al-Minya, 21 al-ahrdm. May 27, 1920. \ 8 al-muqattam, February 2, 1922, where the Committee for Egyptian Women 22 al-ahrdm, February 9, 1921. sold 45 shares of Bank Misr stock. 23 al-muqattam, January 21, 1922. y> al-muqatuun, February 2. 1922. 34 al-muqattam, January 10, 1922. 20 al-muqattam, February 3, 1922. 119 118 COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930

purely domestic commerce and resented foreign domination enough money on demand and be forced to borrow from of the economy. Large merchants involved in the import- other banks which would defeat the purpose of the boycott. export trade and who had extensive tics with foreigners, such Instead, Islam argued, Egyptians who were able, shouldcon as Ainin Yahya Pasha, were not forthcoming with support centrate upon purchasing at least one share of the bank's cap as they had little to gain from it. This latter group of "com ital to help it reach its goal of £E 200,000. In another article pradors" was to create serious political difficulties for the in al-akhbdr on January 2, 1922, Sayyid Kamil, director of Bank Misr during the 1930s. the Bank Misr's research office, and the architect of many of Despite the support of the Wafd, student organizations, the bank's early projects, likewise sounded an extremely cau large landowners and sectors of the merchant community, tious note regarding the boycott. First, Kamil argued that the Bank Misr was very cautious not to become too closely the Egyptian boycott needed more study, such as an analysis identified with any one group or organization during this of the techniques used in India against the British and their • i early period of its development. This posture reflected the results. Merchants, he continued, must be very careful not bank's conservative nature rather than an apolitical disposi to harm their business interests in the process of replacing tion. The image the Bank Misr sought to foster of its re British goods with non-British and locally produced goods. maining "above politics" belied its deep involvement in po Similar caution should apply to merchants seeking to sell their litical activity, especially after Britain granted nominal cotton to the United States instead of England. Secondly, independence to Egypt under the 1923 Constitution and al Kamil expressed fears that withdrawing money from all for lowed the reopening of the Egyptian parliament the follow eign banks would lead to a moratorium such as occurred at ing year. the outbreak of the first world war. Withdrawal of funds The politically cautious nature of the Bank Misr was in might also encourage Egyptians to revert to keeping money dicative of the contradiction between its aims as a capitalist in their homes. Furthermore, martial law might be imposed institution bent upon increasing its economic power and the and savings confiscated. Although the populace might feel nationalist movement which sought to rid Egypt of British that the boycott should be uncompromising in nature, Kamil colonial control. For the bank, violent uprisings created an argued that an abrupt withdrawal offunds from foreign banks adverse financial climate and threatened its operations. Even advocates of the Wafdist boycott, which had been instru would harm confidence in the nation's banking system. In r mental in helping the bank augment its capital, were cau stead, the withdrawal of funds should be spread over a pe tioned by the bank not to press their activities too vigor riod of several weeks. ously.25 Despite its support of the Bank Misr, a split developed In an article dated January 4, 1922, in al-akhbdr, and in a within the nationalist movement which was to affect the fu longer article in al-muqattam the following day, 'AIT Islam ture course of the bank's development. Conservative ele argued that Egyptians should not deposit more money in the ments within the movement argued that economic independ bank than was appropriate given its capital. In Islam's view, encewas a necessary condition for, and hence prior to, political this would lead to a situation in which either the bank would independence, while those of a more radical persuasion em have to keep uninvested funds in its vaults and thus lose their phasized the need to immediately end the British occupation interest value or, if it invested its deposits, it might not have and achieve formal independence. Tal'at Harb and the Lib eral Constitutionalist party became identified with the for 25 al-ahrdm. May 10, 1920, April 13, 1921; al-muqattam, April 11, 1921. mer position whereas Sa'd Zaghlul and the more militant

120 121

- COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930 elements of the Wafd party supported the latter course of Wafd party also received support from small factory owners action.26 who resented domination of the Egyptian economy by for This divergence of opinion can be explained, in part, in- eign capital. In a limited sense, then, the Wafd can be sgen terms of the goal ofTal'at Harb to build the Bank Misr into as representative of a nascent bourgeoisie Whose mterests were a strong financial institution as opposed to the desire of Sa'd less compatible with foreign capital than were those of the Zaghlul to attain political power. Given Harb's desire to es Liberal Constitutionalists. tablish the bank as a serious competitor with foreign banks, In explaining the cleavage that developed in the Egyptian too close an identification with nationalist agitation might nationalist movement between those with an "economic" and have led the British to interfere in its activities.27 Further those with a "political" orientation, the term social class should more, where extremist in nature, nationalist activities harmed be used with caution. The formation of the Liberal Consti the bank's interests by undermining the business climate and tutionalist party in 1921 by a dissident faction of the Wafd confidence in the economy. For Zaghlul, the gradualist ap can partly be explained in terms of personality conflicts. To proach of Harb and other conservative nationalists meant a speak of"wings" within the upper class at this point in time, prolonging of the hated occupation. As a result, Zaghlul's as have certain Egyptian Marxists, is dangerous given its small enthusiasm for the Bank Misr seems to have declined appre size.29 This does not mean that differing economic interests ciably after the Wafdist boycott.28 were not the primary factor in explaining recruitment to either From a broader perspective, the split in the nationalist the Liberal Constitutionalist or the Wafd parties. Neverthe movement can also be explained in terms of the different less, the Egyptian economy was too underdeveloped in terms class base of the two most powerful political parties, the Lib of its industrial base and too undifferentiated in its occupa eral Constitutionalist and the Wafdparties. The Liberal Con tional structure for class cleavages to assume rigid lines. In stitutionalists represented, almost exclusively, the upper stra stead, it is possible to discern the formation of nascent fac tum of the Turco-Egyptianand indigenous large landowning tions and the beginnings of factional conflict within the ruling class whose primary concern was the sale of its cotton in the class in the debate over whether the nationalist movement world market. While the large landowners resented very should have as its primary.goal economic or political inde deeply the machinations of foreign capital within Egypt, they pendence. were still dependent upon foreign markets, particularly Great Since many of the dimensions of class conflict were still Britain, to purchase their cotton. The Wafd also recruited latent during the early 1920s, the Bank Misr was able to mo many landowners but they tended to own much less land bilize support from almost all sectors of Egyptian society. than the members of the Liberal Constitutionalist party. More Large landowners and merchants sold shares in the provinces significantly, the Wafd counted many merchants amongjts while students and the Cooperative Finance Company tapped supporters, particularly" cotton merchants. Many of these urban notables and the urban middle and lower middle merchants were landowners who cultivated cotton in addi classes.30 Members of the three major political parties, the tion to competing with foreign merchants in its sale. The Wafd, Liberal Constitutionalist and National parties, played important roles in the financing and management of the bank. 36 al-muqattam, January 15, 1922. \ 27 Interview with Muhammad Amln Ahmad, March 29, 1973; al-akhbdr, 29 Dr. 'Asitn al-Disuqi estimates that the total number of large landown July 26, 1973. ing families with 100 faddans or more at 2,531 families, not including the 28 It also seems clear that Zaghlul felt a certain amount of jealousy over Muhammad 'All family: kibdr al-mulldk, p. 29. Harb's position as "Egypt's economic leader" (za'im misr al-iqtisddi). x al-akhbdr. May 10, 1920. May 20, 1920.

122 123 COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930

During its first period ofexpansion between 1920 and 1922, mean, however, that the bank avoided involvement in polit the Bank Misr benefited from the class solidarity that emerged ical activity as quite the opposite was true. for a temporary period after the 1919 Revolution and the still Once the 1923 Constitution was proclaimed, Egypt achieved undifferentiated character of the Egyptian economy. limited control over its internal affairs. Given the aims ofthe The second period of the Bank Misr's expansion between Bank Misr and the factionalism that pervaded the political 1923 and 1930 marked a slower rate of growth in both its parties, it was only natural that the bank should attempt to capital and deposits. During this period, the first important avoid partisan politics and instead seek to gain influence within "Misr" companies were formed. These years witnessed a centers of power that were not identified with any single further disintegration of the Egyptian nationalist movement political organization. Thus the bank obtained representation and the institutionalization of the three-way power struggle in the Egyptian Economic Council and the Higher Cooper between the British, the Palace and the nationalist movement ative Council which were formed in 1923 and 1926 respec which plagued Egyptian politics prior to the 1952 Revolu tively to advise the government on its economic policies.32 tion. This period also saw a clearer delineation of class con It also secured representation in the Bureau of Commerce flict both within and among classes. Within the upper class, and Industry and in the Commission of the Minet El-Basal landowners, merchants and government bureaucrats who in and Cairo Stock and Futures Exchanges. The Bank Misr vested in industry began to press the Egyptian government gained strong influence in the Egyptian Federation of Indus to erect tariff barriers and give subsidies to fledgling Egyp tries, which was formed in 1923, and in the board of direc tian industries. Cotton growers who refrained from such in tors of the powerful Credit Foncier Egyptien.33 The bank vestment and local merchants tied closely to foreign capital also expanded its influence in the Cairo Chamber of Com were hostile to such support as they saw it as a threat to free merce and its branches in the provinces.34 trade. Small businessmen appealed to the government to make While the Bank Misr refused to become identified with the more capital available in the form of low interest loans to Wafd party or its rivals, this did not preclude it from exer encourage domestic industry. cising influence in the reconstituted Egyptian parliament. Af The split within the nationalist movement between those ter the parliament opened in 1924, the bank formed its own who saw the immediate goal as the reduction ofthe influence influential clique both in the Chamber of Deputies (majlis of foreign capital and those who wanted to end the British al-nuwwab) and in the Senate (majlis al-shuyiikh). By a occupation and circumscribe the power of the Palace and the wide margin, the vice-managing director of the Bank Misr, royal family also became more clearly defined. Many organ Dr. Fu'ad Sultan Bek, was elected chairman of the Fi izations that supported the Bank Misr such as the Egyptian nance Committee within the Chamber while Yusif Asian al- Federation of Chambers of Commerce, the Egyptian Feder Qattawi (Cattaui) Pasha, the vice-president of the bank, ation of Industries and the conservative daily, al-muqattam, received the second highest number of votes. Two other in criticized the leadership of the nationalist movement for dis fluential supporters ofthe bank, Tahir al-Lawzi, and Muham sipating its strength through factional disputes.31 Following mad Sulayman al-Wakil, were also elected to the committee.35 the reopening of parliament, the Bank Misr continued its 32 al-akhbdr, May 14, 1923; al-muqattam, September 5, 9, 1925. policy of studiously refraining from becoming associated with » al-watan, May 28, 1924. any one faction of the nationalist movement. This does not 34 al-muqattam, October 21, 1924. 35 Egyptian Chamber of Deputies. Eleventh Session, March 31. 1924, p. 31 al-muqattam, February 12, 1924. 110, appendix to LeJournal officiel (al-waqd'i' al-misriya], March 31, 1924.

124 125

* COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930

The Bank Misr was also able to gain significant influence the mosi- important centers of the bank's commercial activi in the Egyptian Senate. Muhammad 'Ilwi al-Gazzar Bek, who ties. The bank had important representation in the Asyut, al- was director of the Shibin al-Kum branch of the bank, was Fayyum and BanI Swayf provincial and town councils as elected Deputy Speaker (wakJl) of the Senate in 1924 together well.40 The Bank Misr also strengthened its position in the with Ahmad ZakI Abu al-Sa'tid Pasha. More significantly, provinces through its practice ofemploying the offspring of Tal'at Harb was elected chairman of the most powerful Sen local notables in its provincial branches and company of ate Committee, the Finance, Trade, Industry and Customs fices.41 Committee. At the same time, Harb and his supporters were Finally, the Bank Misr sought to gain influence in certain able to defeat an attempt by a group of senators to reorganize ministries. Particularly important to its commercial activities the committee into two separate committees.36 Supporters of were the ministries of Finance, Agriculture and Transporta the Bank Misr were elected to the Public Works and Trans tion since they controlled decisions regarding the issuance of portation Committees and polled the highest number of votes decrees for certain types of joint-stock companies. Ministers for the first three positions on the Agriculture Committee.37 were usually offered positions on the boards of directors of The bank's position in the Senate was also strengthened by Misr companies following their resignation or retirement in the designation of Fu'ad Sultan as secretary (murdqib) of the exchange for political support while in office. This policy of Chamber-Senate Conference Committee.38 the Bank Misr became much more important during the 1930s In addition to its political influence in governmental and when the Misr Group underwent a significant expansion and quasi-governmental institutions and within the Egyptian began to earn substantial profits.42 Since directorships be parliament, the Bank Misr found strong support within the camevery lucrative, they werehighly coveted among all sec political infrastructure of the provinces. In 1925, for exam tors of the ruling class. ple, the provincial town and village councils decided to with In summary, as the 1920s progressed, the Bank Misr came draw their accounts from the National Bank of Egypt and to depend to an even greater degree upon the state and tra deposit them in the Bank Misr. As a result, the bank added ditional structures to promote its interests. This shift away £E 498,851 from the provincial councils and £E 608,000 from from a mass base of support to dependence on the Egyptian the town and village councils to its accounts for a total of £E government and specific notable families dampened the en 1,106,851.39 thusiasm of segments of the nationalist movement for the An analysis of the composition of these councils explains bank. No longer did the media extol the bank as enthusias how the Bank Misr was able to expand its commercial activ tically after 1923 as during the two year periodfollowing the ities so rapidly in the countryside during the 1920s. Sup 40 Secal-dalil al-misri (The Egyptian Guide] 1920 and 1925 (Cairo: al-Shirka porters of the bank controlled provincial councils in al-Minya al-Sharqlya Press, 1920 and 1925), sections on al-Minya, al-Gharbiya, As and al-Gharbiya provinces, both of which came to represent yut, al-Fayyum and BanI Swayf Provinces. « al-dalil al-misri, 1930, pp. 1335, 1433 and 1589. * Egyptian Senate, Eleventh Session, April 15, 1924, p. 92; Thirteenth 42 Examples of ministers who joined Bank Mi?r or its companies after Session, April 22, 1924, p. 103; and Fifteenth Session, May 19, 1924. p. Ill leaving office were: Mustafa Mahir Pasha (Minister of Finance), Yusif al- (contained in LeJournal ojficiel of the same dates). Qattawl (Cattaui) Pasha (Minister of finance, Transportation), 'Uthman "Ibid., p. 112. Muharram Pasha (Minister of Public Works), 'All Mahir Pasha (Minister 38 Egyptian Senate, Fourteenth Session, April 29, 1924, p. 108 (contained of Public Education, Finance), Tawfiq Duss Pasha (Minister of Agriculture, in LeJournal ojficiel of the same date). Transportation), 'Abd al-Hamld Sulayman Pasha (Minister of Transporta 39 Bank Misr, Reports, 1926, p. 11. tion), and Ahmad Midhat Yagan (Minister of Foreign Affairs).

126 127 COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930

1919 Revolution. In fact, the bank was first severely criti five main branch offices, six subbranch offices and numerous cized during this period. The most vigorous attack occurred cotton storage areas (shuwan) throughout the Delta and Up in 1924 when the newspaper, al-watan, accused the Bank Misr per Egypt. In addition to its main office, by 1930 the Bank of not distributing funds of an industrial credit account which Mi§r was represented by ten main offices, ten subbranch of it had been awarded the previous year in order to encourage fices, a correspondent in Damietta and a seasonal office in small industry.43 The pretence that the Bank Misr repre one of Egypt's most prominent resorts.44 sented the interests of the populace at large was gradually Equally important was the expansion of the Bank Misr's dispelled as it came to be identified with the more conser companies during the 1920s. In 1922 it established its first vative elements of Egyptian society, particularly the landed company, the Imprimerie Misr (matba't misr). This was fol upper class. Egyptians of all social strata could, and did, con lowed, in 1923, by the establishment of the Societe Egyp- tinue to take pride in the accomplishments of the Bank Misr tienne pour la Production du Papier. These companies had a and its companies during the latter half of the 1920s. How relatively small share capital and the bank's paper company ever, no longer was the radical wing of the nationalistmove never actually began production.45 ment willing to heap uncritical praise upon the Bank Misr It was the founding of the Societe MisrpourleCommerce given its increasingly conservative orientation. et l'Egrenage du Coton (Misr Cotton Ginning and Trading The rapid expansion of the Bank Misr and its companies Co.) in 1924 which effectively marks the beginning of what during the 1920s reflected the strong ties which Tal'at Harb may be called the Misr Group. The Misr Ginning Co. was and the founders of the bank had developed with leading followed by the Societe Misr pour le Transport et la Navi members of the landowning and commercial classes. Be gation (MisrTransport and Navigation Co.) and the Societe tween 1923 and 1930 the Bank Misr expanded its operations Misr pour le Theatre et le Cinema (Studio Misr) in 1925. In beyond its Cairo and Alexandria offices. In 1921 it had opened 1926, Banque Misr-La France was established. The purpose a branch office in Alexandria while in 1922 branches were of this branch, which maintained an office in Paris, was to established in al-Muskl, the traditional market area of Cairo, provide travel services for Egyptian tourists in Europe. The Rawda al-Faraj and Athr al-Nabi, important Cairo depots on following year saw the founding of the Bank Misr's most the Nile, and in al-Mansura, one of the most important com important firm, the Societe Misr pour la Filature et le Tissage mercial cities in the provinces. In 1923, the Bank Misr opened du Coton (Misr Spinning and Weaving Co.) and three smaller what was to become its most important provincial office in firms, the Societe Misr pour le Lin (Misr Flax Co.), the So the town of al-Minya, with a subbranch office in Maghagha. ciete Misr pour les Pecheries (Misr Fisheries) and the Societe In addition, the bank established a correspondent in Damietta Misr pour le Tissage de la Soie (Misr Silk Weaving Co.). In (Dimyat), another of Egypt's important commercial centers. 1929 Banque Misr-Syrie-Liban was established with the as In an attempt to profit from the Mediterranean tourist trade, sistance ofa number ofSyrian and Lebanesenotable families. a summer office was opened in Ra's al-Bar, near Damietta. The following year the Bank Misr absorbed the last of the The following year branch offices were established in Tanta Lindemann family holdings in Egypt, the Upper and Lower and al-Mahalla al-Kubra, in al-Gharbiya province while the Egypt Cotton Trading Co., and created the Societe Misr pour al-Minya branch office extended its activities to Bani Mazar l'Exportation du Coton (Misr Cotton Export Co.). and al-Malawi. Between 1925 and 1930, the Bank Misr opened 44 Bank Misr, Reports, 1930, p. 1. 45 A.A.I. El-Gritly. The Structure ofModem Industry in Egypt (Cairo: Gov 43 al-watan, editorial, June 16, 1924. ernment Press, 1948), p. 435.

128 129

" COLONIALISM RENEGOTIATED, 1920-1930 T COLONIALISM RENEGOTIATED, 1920-1930 In theshortspace ofa decade, theBank Misr had increased thesupportit received from theEgyptian government which its share capital from £E 80,000 in 1920 to one million pounds awarded it funds to contract loans with small industry and in 1930, had established a large number of branches and cot agricultural cooperatives and to purchase cotton for storage. ton storage facilities throughout the country and had founded Superficially, it appeared that the Bank Misr was well on ten joint-stock companies in Egypt with a share capital of its way to becoming one of Egypt's most powerful financial almost two and a half million Egyptian pounds. It also con institutions by 1930. However, the problems that were later trolled two foreign subsidiaries, the Banque Misr-Syrie-Li- to plague the bank and ultimately lead to its financial collapse ban with a share capital of one million Lebanese lira and Ban were already beginning to crystallize. Most significant was que Misr-La France with a capitalization offive million French the support the bank received from the large landowning francs.1" class. Initially, the most prominent landlords who supported In addition to its success in expanding operations in the the bank were from the provinces of Upper Egypt, reflecting private sector, the Bank Misr was successful in playing an the ties Tal'at Harb had established while working for the important role in the small but growing public sector. Not al-daVra al-santya. Between 1923 and 1930, the Bank Misr only the bank but many sectors of Egyptian society saw the began to attract the financial support oflandowning families necessity for Egypt to industrialize during the 1920s. Sym from other provinces. On the surface, this rapid growth would pathy for such a policy existed in most, if not all, of the appear to have been a positive factor. In reality, it only in governments that ruled during the inter-war period. Early in creased the Bank Misr's dependence upon the agrarian the 1920s, the Egyptian government decided to establish two bourgeoisie. funds to encourage the development of agricultural cooper Cotton prices fell dramatically in 1925. Unlike many of atives and small industry. The Bank Misr was chosen as the the foreign banks, the Bank Misr refused to sell cotton stored institution through which these funds would be channeled. in its warehouses. Grateful owners such as al-Sayyid Mu As noted earlier, the instability in world cotton prices dur hammad BadrawT 'Ashur Pasha and Prince 'Umar Tusun ing and following the first world war led the large landown praised the bank in the press for having "saved the wealth of ing class to form the Egyptian General Agricultural Syndi the nation."48 Also important in attracting new cotton cul cate to protect its interests. The two policies followed by the tivators was the bank's loan policy. In order to edge out Syndicate were to attempt to restrict the amount of land competitors, the bank required cultivators to put up less planted under cotton and to pressure the Egyptian govern margin than was required by foreign banks.49 Given the bet ment to purchase and store cotton until the harvest could be ter terms of loans, it is obvious why the bank was able to sold under more favorable conditions. The Syndicate was win over many accounts formerly held by other banks. Since successful in achieving both objectives although its policies all of these new accounts were from large landowners, the had little or no impact on world market prices. The Bank 48 al-muqattam, November 17, 19, 21, 25, 1925, June 5, 1926. Another Misr profited greatly from the government's policy as it was important landowner to praise the bank was Alexsan Absakhurun Pasha of delegated the responsibility of purchasing the major propor Asyut who stated that not only was he pleased with the bank's cotton pol tion ofthe cotton which was temporarily placed in storage.47 icy, he also hoped it would establish a spinning and weaving company in the near future. Thus the Bank Mi$r's cotton policy seems to have set the Thus one reason for the rapid growth of the Bank Misr was stage for later support for its textile manufacturing plants among the agrar 46 Elie Politi, Annuaire des societes egypticnnes par actions, 1932 (Alexandria: ian bourgeoisie. Badrawi'Ashur Pasha was the first subscriber to the Mi$r Imprimeric A. Procaccia, 1933), p. 207. Spinning and Weaving Co. 47 Bank Misr, Reports, 1930, pp. 4-5. 4» Interview with Dr. 'All al-Gritli, February 24, 1973.

130 131 "♦ "•_;

COLONIALISM RENEGOTIATED, 1920-1930 COLONIALISM RENEGOTIATED, 1920-1930 fate of the Bank Misr became even more closely intertwined came to be expected by prominent cotton growers.52 The .. with that of the agrarian bourgeoisie. growth of the Bank Misr became further identified with the Many of the landowners who became clients of the Bank agrarian bourgeoisie through the support it derived from large Misr, such as the al-Wakil, the al-Manzalawi and the Khashaba landowners in parliament. Only through the action of parlia families, were important cotton merchants. The financial ment was the decision, made by the Ahmad Ziwar cabinet dealings of the bank with this substratum of the agrarian in 1925, to prevent the provincial, town and village councils bourgeoisie indicates still further the problems it faced dur from withdrawing their funds from the National Bank of ing the late 1920s. These problems were particularly evident Egypt and depositing them in the Bank Misr' overturned.53 in the case of the bank's most prominent client, Sadiq Bek In order to sustain the support of the large landowners, the Bank Misr engaged in a policy of offering former ministers Qalini Sulayman, a landowner, cotton merchant and son of I a Coptic sarrafor tax-collector in al-Minya province. Qalini positions either on the board of the bank or those ofits com maintained several business offices throughout Egypt, all of panies. This policy sometimes proved counterproductive since which were located in buildings that housed offices of the not all ministers could be accommodated.54 Bank Misr.50 Having mostlikely methimeither while work Another indicator in the shift in the social bases of the ing or vacationing at his estate in al-Minya, Tal'at Harb cap Bank Misr was the rise in the average number ofshares held italized upon Qalini's extensive contacts in the province. By by its stockholders between 1921 and 1931. In both 1921 and the end of the 1920s, the cotton merchant's business interests 1922, the average number of shares held was ten shares per were integrated with those of the Bank Misr. Qalini was stockholder. This figure increased to sixteen shares per notorious for the small amount of margin required on his stockholder in 1926 and twenty shares in 1931.55 These fig loans. As long as the Egyptian economy was relatively healthy, ures belied the assertion in the yearly reports of the Bank Qalini's business practices presented little threat to the Bank Misr that it represented the interests of, and was owned by, Misr. Using him as a conduit for its funds, it was able to the people (al-sha'b). Clearly, the bankwas progressively be greatly expand its operations, particularly in Upper Egypt. coming controlled by, and was serving the interests of, the When the Depression brought commerce to a virtual stand upper class. still, especially during the late 1930s, such practices proved 52 Interview with Majd al-Dui Hifni Nasif, May 26, 1974. to be disastrous.51 53 F.O. 371/11609/J2141. For the debate ofthis issue, see Collected Minutes While the Bank Misr acquired the financial support of a ofthe Chamber ofDeputies, Eleventh Session, July 19, 1926, pp. 117-129. The very large section of the agrarian bourgeoisie, the large land AhmadZiwar cabinet represented the Turkified sector of the Egyptian rul ing class and had close ties to the Palace. Most membersofthis part of the owners came to take it for granted that it would accord them ruling class and the Palace remained hostile to the Bank Mi?r throughout privileged treatment. As an example, the bank was able to the period ofits expansion between 1920 and 1939. capture a substantial portion of the cotton-ginning market, MAlthough it may be an apocryphal story, it is said that the feud that first in Upper Egypt and then in the Delta, by offering lower developed between 'All Mahir Pasha and Tal'at Harb resulted from the fact rates which allowed it to outbid its competitors. Lower rates that Mahir was not offered a reappointment on the board of the Bank Misr after having served as Minister ofFinance in the Muhammad Mahmud cab on the ginning of cotton as well as easier terms on loans inet in 1928 and 1929. Interviews with former deputy, Jamal al-'Abd, May 15, 1974, Muhammad Amin Ahmad, February 27, 1973 and Rene Cattaui » al-dalil al-misri, 1930, p. 1575. s> Interviews with Dr. 'All al-Gritll, May 29, 1974 and the late Dr. Najib in Paris,January 4, 1975. Iskandar (Pasha), June 8, 1973. According to these individuals, Qalini owed " Bank Misr, Reports, 1920, p. 6. 1921, p. 7, 1925. p. 4, 1930, p. 16. the Bank Misr well over £E 500.000 in 1939.

132 133 ~"V.

Selected Bibliography

I. MANUSCRIPT COLLECTIONS

Egypt, Egyptian Public Record Office (Dar al-Mahfuzat), Cairo. mukallijat al-tawdn, 1812 [Enumeration Files], mukallijat al-atydn al-zirdtya, 1863-1941 [Agricultural Land Registries], and milajfat al- khidma wa-l-mi'ashdt, 1860-1941 [Service and Pension Files]. Great Britain, Foreign Office Draftsand Dispatches, Public Record Office, London. Extracts from the following scries were used: F.O. 141, F.O. 142, F.O. 368 and F.O. 371. Harb, Muhammad Tal'at, Private Papers of Muhammad Tal'at Harb, 1892-1938 (in Arabic, French, and English). Cairo. al-FhjazI, Muhammad Fu'ad SalTm, Private Papers ofMuhamntad Fu'ad Salim al-Hijdzi, 1892-1922 (in Arabic and French). Cairo. St. Antony's College, Oxford, Middle East Archives. A.G.M. Dickson to the Governor of the National Bank of Egypt, May 27, 1950. St. Antony's College, Oxford, Middle East Archives. Ionian Bank Papers. 1929-1939.

II. NEWSPAPERS AND PERIODICALS

al-ajkar. Cairo: 1920. al-ahali. Cairo: 1914-1921. al-ahrdm. Cairo: 1920-1922. al-ahrdr al-dusturiyiin. Cairo: 1931. al-akhbdr. Cairo: 1919-1923. al-balagh. Cairo: 1937-1939. The Economist. London: 1937-1939. al-hildl. Cairo: 1928. International Cotton Bulletin. Manchester: 1936-1940. al-janda. Cairo: 1907-1914. al-waqd'i' al-misriya [LeJournal ojficiel]. Cairo: 1920-1941. al-liwd'al-misri. Cairo: 1921.

213 '<*'*

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