1 JUNE 1912, Page 2

Lord Kitchener's first report upon Egypt and the Sudan was

issued on Thursday night, and is on the whole thoroughly optimistic in tone. The total revenue of Egypt for the year 1911 was £E16,793,000, which gave a surplus of £E1,921,000. This revenue shows an increase upon that for 1910 of 4E827,000 and upon that for the record year 1007 of 4E425,000. Lord Kitchener reports that the Turco- Italian War has caused deep excitement, but that on the whole .the people of Egypt have displayed the most praise- worthy self-restraint, and be adds that in other re- spects the political . feeling has lately been much calmer. The future development of Egypt, the report observe., must depend . on. improved conditions of agriculture and educational progress, and in these respects the newly formed agricultural department is doing good work. The section upon the Sudan is even more hopeful, and remarks that the prosperity of its inhabitants has increased under British rule by leaps and bounds, "and to-day it may be said that there is hardly a poor man in the Sudan." The population, which under the Mandi's rule dropped from nine to two millions, has now increased to three, and is expected to reach four millions in the next five years.