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[ ] By the 19th Century , the Ottoman Empire was in decline. British
Prime ministers feared that if the Ottoman Empire collapsed
completely, other European powers would benefit and gain territory
from this collapse.
o [ ] The Ottoman Empire had a system where it shared power with
local rulers at its borders. These local rulers were given authority
to uphold laws, defend borders, and collect taxes. However, over
time, these local leaders wanted more independence from the
central Ottoman government in Constantinople. This led to
ongoing challenges as they sought greater autonomy, creating a
power struggle between the central government and these
regional rulers.
[ ] The Khedives (lord/viceroy) in Egypt had a lot of political freedom
from the Ottoman Empire and from the 1850’s had increasingly relied
on European financial investments from Britain and France as they
flooded the country with loans and investments to develop Egypt’s
economy. Between 1863 and 1870, Egypt’s foreign debt had lept from
£3million to £100million. BY 1875 the khedive was bankrupt!
Why the British Wanted Egypt?
[ ] Strategic- The opening of the route to India through the Suez Canal
was vry important to the British. It dramatically shortened the journey
to India and 80% of shipping that travelled through the canal was
carried on British ships.
[ ] The main shareholders in the canal were the French (ownership of
the canal), who had pushed through its reinvestment and building.
There was clear Anglo-French Rivalry in this period. Both were not
prepared to leave.
[ ] Trade- The Egyptians provided an important and growing market for
British exports during its period of modernisation under the khedives.
By 1880 Britain purchased 80% of Egypts exports
[ ] (largely cotton) and supplied 44% of Egypt’s imports. British exports
to Egypt in the 1880s were about 5% of its total export. Developed a
relationship, another country controlling egypt could disrupt this.
[ ] Financial - British bond holders (an entity that invests in or owns
bonds) in the city of london were heavily exposed to any failure by
Egypt to pay its debts. Britain and France had already reacted to the
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