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francs (five francs were then equivalent to one dollar) from the Egyptian Government. How the Emperor was able to arrive at this unjust and illogical verdict will always remain an enigma. Under the concession Egypt was not obliged to offer the company free labor, and even if it did agree to such an offer by de Lesseps' interpretation of Egypt's aid as including free labor, this offer could not be legal or binding, since it lacked the Sultan's sanction, which was withheld. But Napoleon was not concerned with justice or logic; he was chiefly interested in extricating the company from the financial difficulties that threatened to bring its operation to an abrupt end. On the land question, in return for a further purported indemnity, the company was to restore to Egypt all land on the Isthmus, covering 60,00 hectares, retaining, however, a narrow strip on either side of the canal. The Fresh Water and all subsidiary canals and irrigation rights thereon were likewise to be relinquished against a payment of 46 million francs payable to the company over a period of 15 years. The money accruing from all these so-called indemnities more than covered the 84 million francs badly needed by the company of finance current construction. The Sultan's consent to this arbitration, thanks to foreign intrigue and pressure, was granted on March 19, 1866. Again in August 1869, a convention was signed by the company and the Egyptian Government. Under the convention, it was agreed that in return for renouncing its privilege of exemption from customs duties on articles brought into Egypt, or from other taxes and dues, and the privilege of fishing in the lakes, the company was to receive from the Egyptian Government 30 million francs. Since the Khedive Ismail did not have the ready cash to pay this compensation for privileges granted free to the company, he turned the coupons on Egypt's shares for 25 years over to the company. It may be noted here that free Egyptian labor was used in the canal construction for about eight years until it was stopped in compliance with the Sultan's ultimatum. During the remaining two years needed for the completion of the canal, † laborers employed were paid a wage between six and eight piastres (16 to 24 cents) a day. COST OF CANAL The cost of building the canal having been estimated by the International Scientific Commission at 200 million francs, a company was formed in 1858 with a capital in this amount divided into 400,000 shares of 500 francs each, bearing statutory interest at five per cent. In accordance with the desire to keep subscriptions open to all peoples, block of shares were specially reserved for different countries. The result was very disappointing, however, and the issue would have failed completely had it not been for the fine response of Egypt, which was originally allotted, together with the rest of the Ottoman Empire, 64,00 shares; under de Lessep's prodding, [[footnote]]† The canal was completed and opened for navigation on November 17, 1869. As completed, the canal was 100 miles long, 150 to 300 feet wide, 26 feet deep and 72 feet wide at the bottom.[[/footnote]] 42 MOSLEM WORLD & THE U.S.A. [[end page]] [[start page]] [[image - black & white photograph of Gamal Abdel Nasser]] [[photo credit = EMBASSY OF EGYPT]] [[caption]] Gamal Abdel Nasser The beloved President of Egypt [[/caption]] the Khedive agreed to purchase a total of 177,642 shares, or 44 per cent of the total issue. The Egyptian treasury did not have the money to pay for the shares, so the Khedive had to borrow 28 million francs from French banks. It was the first foreign debt contracted by Egypt on account of the canal company. The total payments made by the company for the construction of the canal amounted to 432,807,882 francs, or more than double the estimate of the International Scientific Commission. From the sales of shares, the company had realized 200 million francs. One hundred million OCT.-NOV.-DEC. 1956 43
