16 APRIL 1937, Page 2

Egypt and the Capitulations The fact that the Montreux Conference

on the abolition of capitulations in Egypt has opened in an atmosphere of marked cordiality should not inspire excessive optimism. A result reasonably satisfactory to Egypt will no doubt be reached ultimately, but the conference is just entering the phase in which difficulties multiply. That consular jurisdiction over foreign residents in the new Egypt will be abolished may be taken for granted, and the restraint on Egypt's power to tax foreigners cannot survive the attainment of complete political independence. But over the length of the period of transition, and the question of whether, in particular, foreign companies registered in Egypt shall have litigation in which they may be concerned dealt with in the Mixed Court or must take it forthwith to the Egyptian courts, the Egyptian Govern- ment may have to accept some compromise with its desires. There are certain fields, notably that of commercial law, in which Egyptian Courts as yet necessarily lack experience. In these matters agreement on the principle is more important than the precise time-limit set. And the principle, that the remaining restraints on Egypt's full sovereignty must dis- appear at an early date, is likely to be contested by none of the Powers now negotiating at Montreux.

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