1938: Egypt

During 1938 the newly-acquired complete independence of Egypt found expression in an increase of the Egyptian army, which, with the help of a British military mission, was thoroughly modernized and enlarged. Preparations were made also for a rapid increase of the Egyptian air force and for the creation of an Egyptian navy. The treaty between Great Britain and Egypt of August 1936 was revised to the advantage of Egypt by a redistribution of the financial charges imposed upon the country in connection with military constructions and with the transfer of the British army from Cairo and Alexandria to the Suez Canal Zone. The condominium between Great Britain and Egypt in the Sudan was made a reality by the admission into the Sudan of Egyptian troops and Egyptian officials.

In the internal policy of the country the Wafd, the leading Nationalist party, under the leadership of Mustafa Nahas Pasha, suffered an eclipse. Many members left the party and formed, under the name of Saadists, a group of dissident Wafdists which cooperated with the Government under the leadership of Mohamed Mahmud Pasha. The elections in the spring of 1938 gave a great majority to the supporters of the Government, which also had the full confidence of the youthful King Farouk. On April 12, 1938, the new Parliament, the Seventh Parliament in Egypt, was opened by the King, who in his address from the throne promised a number of social and economic reforms.

Egypt participated also in the negotiations for the Anglo-Italian Pact of April 16, 1938. This pact reaffirmed the declaration of Constantinople, of Oct, 29, 1888, according to which the use of the Suez Canal was to be free to all countries at all times. In view of the great interest which Egypt has in the Nile, she was also officially informed of the fact that the Italian Government had reaffirmed its promise, given to Great Britain on April 3, 1936, to respect the British (and Egyptian) interest in the waters of Lake Tana, in Ethiopia. This lake is the source of the Blue Nile, which joins with the White Nile to form the famous river upon which the life of Egypt absolutely depends. Towards the end of 1938 Italy raised a claim to a share in the administration of the Suez Canal, which forms the most important link between Italy and her East African Empire. Whereas Great Britain held by far the first rank in the tonnage passing through the Canal, the Italians came second. The Suez Canal is administered by a private company, the majority of the shares being in French hands. The Italian Government demanded an influence in this private company and a right of determining the policy of the Suez Canal. In connection with this demand, the Egyptian Government made it known that in view of the fact that the Suez Canal is on Egyptian territory, it wishes to be consulted before any decisions are considered.