Exchange of Notes relating to Proposals for an .sx Anglo-Egyptian Settlement .sx No .sx 1 .sx Mr. A. Henderson to Mohammed Mahmoud Pasha .sx Foreign Office , August 3 , 1929 .sx Your Excellency , .sx THE accompanying proposals , together with the explanatory notes to be exchanged on matters of detail , which your Excellency is about to submit to the Egyptian Parliament , represent the extreme limit to which I could recommend His Majesty's Government in the United Kingdom of Great Britain and Northern Ireland to go in their desire to achieve a lasting and honourable settlement of outstanding questions between Great Britain and Egypt .sx It is the earnest hope of His Majesty's Government that patriotic Egyptians without distinction of party will examine these proposals in the same friendly and conciliatory spirit which has characterised our recent conversations , and will find in them a satisfactory basis for the future relations between our respective countries .sx If this should be the verdict of the newly-elected Egyptian Parliament , His Majesty's Government for their part will immediately submit the proposals to Parliament with a view to the conclusion and ratification of a treaty carrying them into effect .sx I have , &c .sx ARTHUR HENDERSON .sx Enclosure in No .sx 1 .sx Proposals for an Anglo-Egyptian Settlement .sx 1 .sx THE military occupation of Egypt by the forces of His Britannic Majesty is terminated .sx 2 .sx An alliance is established between the High Contracting Parties in consecration of their friendship , their cordial understanding and their good relations .sx 3 .sx Egypt , being anxious to become a member of the League of Nations , will present in the conditions prescribed by article 1 of the Covenant a request for admission to the League , which His Britannic Majesty undertakes to support .sx 4 .sx Should any dispute with a third State produce a situation which involves a risk of a rupture with that State , the High Contracting Parties will concert together with a view to the settlement of the said dispute by peaceful means in accordance with the provisions of the Covenant of the League of Nations and of any other international obligations which may be applicable to the case .sx 5 .sx Each of the High Contracting Parties undertakes not to adopt in foreign countries an attitude which is inconsistent with the alliance or will create difficulties for the other Party thereto .sx In pursuance of this undertaking they will not oppose each other's policy in foreign countries , nor conclude with a third Power any agreement of a political character which might be prejudicial to the interests of the other Party .sx 6 .sx His Britannic Majesty recognises that the responsibility for the lives and property of foreigners in Egypt devolves henceforth upon the Egyptian Government .sx His Majesty the King of Egypt will ensure the fulfilment of his obligations in this respect .sx 7 .sx Should , notwithstanding the provisions of paragraph 4 above , either of the High Contracting Parties become engaged in war , the other High Contracting Party will , subject always to the provisions of paragraph 14 below , immediately come to his aid in the capacity of an ally .sx In particular , His Majesty the King of Egypt will , in the event of war or menace of war , furnish to His Britannic Majesty on Egyptian territory all the facilities and assistance in his power , including the use of his ports , aerodromes and means of communication .sx 8 .sx In view of the desirability of identity in training and methods between the Egyptian and British armies , His Majesty the King of Egypt undertakes that , should he deem it necessary to have recourse to foreign military instructors , these shall be chosen from amongst British subjects .sx 9 .sx In order to facilitate and secure to His Britannic Majesty the protection of the Suez Canal as an essential means of communication between the different parts of the British Empire , His Majesty the King of Egypt authorises His Britannic Majesty to maintain upon Egyptian territory in localities to be agreed upon , to the east of longitude 32E .sx , such forces as His Britannic Majesty considers necessary for this purpose .sx The presence of these forces shall not constitute in any manner an occupation and will in no way prejudice the sovereign rights of Egypt .sx 10 .sx In view of the friendship between the two countries and of the alliance contemplated in the present proposals , the Egyptian Government when engaging the services of foreign officials will as a rule engage British subjects .sx 11 .sx His Britannic Majesty recognises that the capitulatory regime now existing in Egypt is no longer in accordance with the spirit of the times and with the present state of Egypt .sx His Britannic Majesty accordingly undertakes to use all his influence with the Powers possessing capitulatory rights in Egypt to obtain , in conditions which will safeguard the legitimate interests of foreigners , the transfer to the Mixed Tribunals of the jurisdiction of the existing Consular Courts , and the application of Egyptian legislation to foreigners .sx 12 .sx In view of the friendship between the High Contracting Parties and of the alliance contemplated in the present proposals , His Britannic Majesty will be represented at the Court of His Majesty the King of Egypt by an Ambassador , duly accredited , and His Majesty the King of Egypt will reserve the highest diplomatic rank at his Court to the representative of His Britannic Majesty .sx His Majesty the King of Egypt will be represented at the Court of St. James's by an Ambassador .sx 13 .sx While reserving liberty to conclude new conventions in future modifying the conventions of 1899 , the High Contracting Parties agree that the status of the Sudan shall be that resulting from the said conventions .sx Accordingly , the Governor-General shall continue to exercise on the joint behalf of the High Contracting Parties the powers conferred upon him by the said conventions .sx 14 .sx Nothing in the present proposals is intended to or shall in any way prejudice the rights and obligations which devolve , or may devolve , upon either of the High Contracting Parties under the Covenant of the League of Nations or the Treaty for the Renunciation of War signed at Paris on the 27th August , 1928 .sx 15 .sx The High Contracting Parties agree that any difference on the subject of the application or the interpretation of the provisions of the present proposals which they are unable to settle by direct negotiation shall be dealt with in accordance with the provisions of the Covenant of the League of Nations .sx 16 .sx At any time after the expiration of a period of twenty-five years from the coming into force of a treaty based on the above proposals such modification of its terms as may be deemed appropriate in the circumstances as they then exist may be made by agreement between the High Contracting Parties .sx ARMY .sx BRITISH NOTE .sx Your Excellency , .sx In the course of our recent discussions , certain military questions arose and were most carefully considered .sx These questions fall naturally into two categories :sx first , those concerning the Egyptian forces which might , in the unhappy event of the circumstances arising contemplated in the first sentence of paragraph 7 of the proposals , be called upon to co-operate actively with allied British forces ; and , secondly , questions touching the British forces which , under paragraph 9 , will be stationed in the neighbourhood of the Suez Canal for the purpose of ensuring the defence of that vital artery of British imperial communications .sx As to the first category , your Excellency and I agreed as follows .sx ( 1 .sx ) Existing arrangements , under which the Inspector-General and his staff exercise certain functions , shall terminate .sx British personnel shall be withdrawn from the Egyptian forces .sx ( 2 .sx ) The Egyptian Government , however , desire in accordance with paragraph 8 of the proposals to avail themselves of the advice of a British military mission .sx His Britannic Majesty's Government in the United Kingdom and Northern Ireland undertake to furnish such a mission .sx The Egyptian Government will send the personnel of the Egyptian forces to be trained abroad in Great Britain only .sx His Majesty's Government , for their part , under-take to receive any personnel which the Egyptian Government may send to Great Britain for this purpose .sx ( 3 .sx ) In the interests of the close co-operation referred to above , the armament and equipment of the Egyptian forces shall not differ in type from those of the British forces .sx His Majesty's Government undertake to use their good offices to facilitate the supply of such armament and equipment from Great Britain whenever the Egyptian Government so desire .sx With regard to the British forces referred to in paragraph 9 of the proposals :sx ( i. ) The Egyptian Government will provide , free of cost to His Majesty's Government , lands , barracks , &c .sx , in .sx localities to be agreed upon , equivalent to those now occupied by the British forces in Egypt .sx Upon the completion of this new accommodation , those forces shall be transferred thereto , handing over the lands , barracks , &c .sx , thus vacated to the Egyptian Government .sx In view of the technical objections to effecting this transfer piecemeal it shall await the completion of the new accommodation to be provided .sx Having regard to the character of the region lying to the east of longitude 32 E. steps will be taken to furnish reasonable amenities by planting trees , gardens , &c .sx , for the troops , who will also be provided with an adequate emergency fresh water supply .sx Subject to any modifications which may in the future be made by agreement between the two Governments , the privileges and immunities in jurisdictional and fiscal matters at present enjoyed by the British forces in Egypt will continue .sx Unless the two Governments agree to the contrary , the Egyptian Government will prohibit the passage of aircraft over the territories situated on either side of the Suez Canal and within 20 kilom .sx of it .sx This prohibition will not , however , apply to the forces of the two Governments or to services maintained by genuinely British or Egyptian organisations operating under the authority of the Egyptian Government .sx We also agreed that the Egyptian Government will give all necessary facilities to British military aircraft , personnel and stores on passage to or from the aerodromes placed at the disposal of the British forces in accordance with paragraph 9 of the proposals .sx His Majesty's Government will give appropriate facilities to Egyptian military aircraft , personnel and stores in territory under their control .sx BRITISH NOTE .sx Your Excellency , .sx I have the honour to acknowledge the receipt of your note of to-day's date regarding the posts of the Financial Adviser to the Egyptian Government and the Judicial Adviser to the Ministry of Justice , and note with satisfaction your Excellency's statement of the intentions of the Egyptian Government .sx BRITISH NOTE .sx Your Excellency , .sx His Britannic Majesty's Government in the United Kingdom note with satisfaction that in pursuance of the undertaking contained in paragraph 6 of the proposals the Egyptian Government , after the disappearance of the European Bureau of the Public Security Department , will retain , for at least five years from the coming into force of a treaty based on the proposals , a certain European element in their city police , which will remain for the same period under the command of British officers .sx If at some future date the Egyptian Government should desire to reorganise their police force , His Britannic Majesty's Government will be happy to lend them the services of individual experts or of a police mission as they have done in the case of other countries similarly desirous of reorganising their police .sx CAPITULATIONS .sx BRITISH NOTE .sx Your Excellency , .sx Paragraph 11 of the proposals provides as follows :sx " His Britannic Majesty recognises that the capitulatory regime now existing in Egypt is no longer in accordance with the spirit of the times and with the present state of Egypt .sx " His Britannic Majesty accordingly undertakes to use all his influence with the Powers possessing capitulatory rights in Egypt to obtain , in conditions which will safeguard the legitimate interests of foreigners , the transfer to the Mixed Tribunals of the jurisdiction of the existing Consular Courts , and the application of Egyptian legislation to foreigners .sx " It will be useful if I explain to your Excellency the lines on which I think this reform of the capitulatory regime might well proceed , as I shall be prepared to support the efforts of the Egyptian Government to conclude arrangements with the Powers on these lines when a treaty based on the proposals comes into force .sx