It is clear that we shall find no easy way
out of the deadlock which has been reached between this country And Egypt. This has been demonstrated by a curious little incident. On Thursday, the 6th, a Government- inspired Cairo newspaper, La Liberte, suddenly sent up -what -was evidently a kite 'to test current Egyptian -opinion. It was suggested that a new diplomatic in- strument between this country and Egypt should be created. A modus vivendi over a limited period, say four to five years, might be established. The proposals, which included the rapid transference of the guardianship of the Canal to purely Egyptian hands and a considerable amount of Egyptian control for the Sudan, were quite unacceptable. But the mere idea of coming to terms with this country even on such conditions as these has aroused a storm of protest in Egypt, and Zaghlul has officially denied all cognizance of the proposal. Mean- while the Wafd Party have had their first check in the shape of a by-election, where a Constitutional Liberal won the seat from them. The Parliament reopened on Wednesday. King Fuad expressed himself confident of a settlement in accordance with Egyptian wishes, while admitting that nothing in that direction was being done.
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