The Sun.
London, England, 1862-02-17 00:00:00

THE EGYPTIAN LOAN.

A letter from Alexandria, dated Feb. 3, says :
Whether or not the Egyptian Government is to
take a loan, and who are to be the persons privi-
liged to supply the money, are questions that still
remain more or less undecided. The Imperial Go-
vernment, as I lately mentioned, have granted
authority to the Viceroy to contract the debt ; but
a difference of opinion has arisen on the subject
with the Prussian Consul-General. The latter
asserts that the Imperial firman solely applies to the
offer made by the German bankers, while Said

Pasha maintains that he is free to borrow the
money wherever he pleased, and on the best terms
he can get. The question in dispute could not be
agreed upon here, and it has accordingly been re-
ferred for solution to Constantinople.
Under any circumstances it is understood that
nothing will be definitively arranged until M.
Thouvenel makes known his decision upon the
claims brought against the Egyptian Government
by the Comptoir d'Escompte. But, meanwhile,
proposals analogous to those of the German
capitalists have been made to the Viceroy by
some of the local bankers, and these offers have
been received with a degree of favour, in ge-
neral attributed to the repugnance felt by the
Viceroy to contracting a foreign debt. If,
however, this repugnance proceeds solely from ap-
prehensions of difficulties with foreign Governments,
it is not easy to see why it should greatly benefit
the Alexandrian bankers. Although resident in
Egypt, they are Europeans, and they would conse-
quently have precisely the same claims as their
brethren in Europe on their respective Governments
for intervention in any question that might arise
between themselves and the Viceroy. In neither
case is it proposed that there should be a European
guarantee of any kind. It is more likely, therefore,
that the *Viceroy simply looks to the possibility of
making a better bargain.
The proposal under discussion is to issue bonds
at par for about 40,000,000 f., redeemable by annual
drawings in 30 years. An annuity of 11 per cent.,
which is that demanded by the German banks,
would thus admit of dividends of nearly 10* per
cent. per annum, besides the sinking fund. The
Viceroy proposes formally to assign certain specific
sources of territorial revenue as a pledge to the
holders of the securities for the punctual payment
of his annual obligations, and to issue the bonds
endorsed with this important condition, as well as
with special reference to the Imperial firman by
which it is authorized. Under these terms it seems
not improbable that a large number of persons here
would be tempted to take a share in the loan. The
credit of the Egyptian Government, through its
wise perseverance in the late economical reforms,

row stands exceedingly well. The Treasury bonds,
which a year ago were at 13 to 15 per cent. discount
per annum, are now sought after at 9 to 10 per
cent., and these bonds, it must be remembered, bear
no interest, and are unsupported by security of any
nature whatsoever beyond the confidence derived
from the punctuality with which the Government
has throughout the past always met its engagements
towards the public. The only condition imposed
by the Turkish Government has been that the
Egyptian stock shall not be quoted on the European
Exchanges, and the reason seems to be, that the
Turks cannot bring themselves to face the humili-
ating contrast which the Turkish and Egyptian
quotations would certainly offer. Doubtless, there-
fore, many persons would be found here ready to
invest their savings in the new securities ; but that
the whole amount of above £1,500,000 sterling
could be taken up without the assistance of European
capital is a proposition far more difficult to meet in
the affirmative. I have therefore stated the case
with all impartiality, for the benefit of any among
your readers who may feel tempted to entertain
the idea of investing in Egypt. Comparisons,
as the Turks seem so well to know, are often
odious, but a Moorish loan having so lately been
concluded, the terms of the operation just termi-
nated and of that under discussion fall naturally op-
posite each other. On the one hand is the immense
advantage of a virtual guarantee from the British
Government ; on the other are higher dividends,
supported by security which, though comparatively
weak, can byno means be regarded as wholly invalid.
But in all these matters, it must be owned, the
weakest point for the Government is its unfortunate
connection with the Suez Canal scheme. The reports
current here respecting the operations of the com-
pany become daily more and more unfavourable
The small channel, or rigole de service, dug through.
Lake Menzaleh, is already, I am informed, almost
entirely obliterated. Whatever embankments had
been raised on either side have been washed away,
and the small boats that occasionally attempt the
passage find themselves every now and then stuck
fast in the open but shallow lake. The approaches
to Port Said are in as unpromising a state as ever,
and the cutting through the sand heights of El Gisr
it is found must be attempted, in spite of its ac-
knowledged difficulties and disadvantages; and, I
must add, it is now altogether vain for the projec-
tors of the scheme to talk of English jealousy and
animosity. Here, at all events, people of all nations
have at length arrived at a tolerably happy state of
unanimity on the subject, and none are more ready
to treat the undertaking with ridicule than the
French themselves—those, at least, who are not per-
sonally interested in it. Many even of the latter
abandon the cause, and disputes are carried before
the French tribunals, through which it is believed
that some curious revelations will ere long come to
light. Among other things that may be held to fore-
bode that the beginning of the end is drawing nigh
must be reckoned the hints that are becoming more
and more frequently cast at the immense difficulties
and obstacles caused by English apposition. Now,
this is too unreasonable. No doubt the scheme found
little favour with the English people or Government,
and it is by no means unlikely that the Porte was
dissuaded from making over the Isthmus of Suez to
a foreign company, but surely our adversaries, to use
their favourite expression,must be prepared to admit
that the disfavour they complain of was by no
means unnatural. They themselves had plainly
informed us that the great object was to aim a blow
at what they called "le point faible de la cuirasse
Anglaise." And yet, beyond what I have men-
tioned, I know of nothing that can be laid to our
charge. Since the first day when the work was
commenced in the isthmus there has been no inter-
ference with it, either direct or indirect. None, in
fact, have boasted more loudly of the rapid success
NS ith which one-half of the capital was obtained in
Prance, and the remaining deficiency supplied by
the Egyptian Viceroy, of the crowds of volunteers
'wllo were flocking to the works from all parts of
Tg7Pt, and of the impotence of England to delay
the completion
of the canal by even a single day,
than those
to who now show an incipient disposition
attribute failure to English illwill. I should
wish that the task of proving the utter irra-
tionality of such
accusation, unparalleled as is
the charge for hi an
inconsistency, at least on this side
of the Atlantic,
adversaries, sarilld avail to silence our above-
mentioned
but any such hopes must, I
fear, be very
suffering British publi!hinddulged in. The Tong-
a fresh burden of respeesaibihrest be prepared to see
shoulders. Already I see it declared fitted to its broad
of Suez journal that the conduct
in the Isthmus
people in hindering the formation of the British
channel from the Mediterranean to toil a navigable
no less obnoxious to the reprobation of Red Sea is
world than that of the Federal AmericatohgeFivilized
block-
ing up against future generations of all
in
.the harbours of the States with which thevuanrtr.rics#
war. Let us, however, at least hope fhat—t"
Egyptian Government may have the wisdom and
e
good fortune to guard itself against the more
tangible demands with which it will undoubtedly
he threatened on the bursting of the great bubble,
for the existence of which it is, unfortunately, so
large responsible.

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THE FRENCH IN COCHIN CHINA.

The Moniteur publishes a long report, d it ed Dec.
26, from Admiral Bonard, giving an account of the
late proceedings in Cochin-China, a summary of

which is given in a preceding column. From the
moment of his arrival at Scgon, he devoted his

attention to collecting all the information that could
be of use to him in the military operations which

were likely to take place. He ascertained that for-

midable preparations for defence had been accumu-
lated on every road leading to Bien-Hoa. Thus,
two leagues from Segon, the Annamites had esta-
blished a fortified camp, defended by 3,000 men.
The river of Bien-Hoa, at two leagues from the
camp, was obstructed by nine solid barriers of
wood, and a little further on, by an estoccade in
stone. Higher up still, a long series of solid piles
were placed for a distance of about 1,000 yards in
the river, at about a foot distance one from the
other. All those works were supported by forts
mounted with cannon, and having parapets
from behind which sharpshooters could fire
in every direction. To attack all those ob-
stacles in front would have been to sacrifice
a great number of lives, and in consequence
the Admiral determined to attack the centre
only, and once having broken it to turn
on the flanks, as the case might require. He ac-
cordingly assigned to each officer in command his
particular work, and he attributes the success ob-
tained to the extraordinary punctuality with which
every direction was fulfilled. The report then pro-
ceeds in these terms :

"Everything being disposed for a vigorous
attack I sent an ultimatum to the Ambassador of
the King Tu-Duc, who was sheltered behind the
barricades of Bien-Hoa, demanding a categorical
reply within 24 hours. The answer not being satis-
factory, the troops chosen for the combined attack
where put in motion at 5 o'clock on the morning of
the 14th December. The same evening the column
commanded by Chef de Batallion Comte, composed
of foot chasseurs, 100 Spanish foot soldiers, 60 horse-
men, and 44 guns, bivouacked at Hon-Loc. A
second column, under the orders of the Lieutenant
Colonel of Marines Domenech Diego, and composed
of 100 Spaniards, a battalion of the 3d regiment of
Marines, and two 4-pounder rifled guns, descended
in the course of the evening to an advanced post on
the river, and held themselves in readiness to march
at daybreak to replace at Hou-Loc Comte's column,
which was to advance upon Go-Cong to keep in
check the camp of 3,000 men established on the
plain of Mihoa, without, however, yet attacking it.
At daybreak the Comte division commenced its
march upon Go-Cong, whilst Captain Le Brie of
the Navy, at the head of two companies of
forces, composed of crews from the vessels, re-
paired to the same point by the stream cf Go-
Cong, which falls into the river Bien-Hoa. At the
same time the captain of the Renommee, with its
boats, was also directed towards Go-Cong, leaving
the stream at the point where the column of Do-
menech Diego had disembarked. These three divi-
sions arrived at the same time owing to a signal
given by firing a cannon shot, which at the moment
of the attack was to be made to Captain Le Bris
and the captain of the Renommee by Chef de Ba-
taillon Comte on his approaching Go-Cong. At
half-past 7 the place was carried. Go-Cong, once
militarily occupied by some companies of foot

chasseurs, Capt. Le Bris, with the troops from the
vessels, reinforced by a part of the Comte division,
immediately advanced to take the forts and the

batteries of the right bank in reverse, while the

vessels under the command of Lieutenant Harel,
commander of the Avalanche, cannonaded them
heavily in front. An obstinate resistance was made
at the barrier forts, and they only fell by the ma-
noeuvre of attacking them in the rear. Your Excel-
lency will easily judge of the losses we should have
suffered had we confined ourselves to attempting to
take those forts by force with our vessels alone, for
a single one of them, the gunboat Alarm, received
54 shots in her hull, and had her rigging and masts
much cut up. The stratagem of turning the bar-
riers having succeeded, the two first forts of the

right bank were carried ; that of the left blew up
with a loud explosion, and all those which were
echelloned along the river as far as Bien-Hoa were
evacuated in disorder. The vessels then, without
taking any rest, attempted to make a passage
through the barriers, and after two days and
nights' incessant work succeeded in reaching a
point of the river near Bien-Hoa."
The next day at dawn Commandant Comte ad-
vanced with his troops on the camp of Mihoa, before
which the Domenech Diego column had remained
in observation. That column and other troops, ap-
pointed to support it, attacked the camp in the
centre and two other points with such energy, that
the enemy were seized with panic, and fled in every
direction. The camp, the fort, and the batteries
having been destroyed, the Admiral gave orders to
have the Domenech column embarked and carried
up the river of Bien•Hoa, whilst the Comte column,
which had returned to Go-Cong, after the route of
Mihoa, prepared to cross the river to operate against
Bien-Hoa. The report then goes on to say :
"In order to fix upon a good spot for landing
before commencing the attack on the citadel of
Bien-Hoa, I ascended the stream above the barriers
on board the steam despatch boat Ondine, upon
which I had hoisted my flag, and followed by the
gunboat No. 31, commanded by Lieut. Jounart.
We were hardly before the citadel, which was con-
cealed by trees, and of which we could only discover
the flag staff, when two or three discharges of artil-
lery were directed against us. Fortunately no one
was hurt, and at the third shot of the gunboat the
fire of the enemy ceased, and a large conflagration
appeared above the citadel. It was only the next
day that we could cross over the troops from the
right to the left bank, and occupy the citadel ; the
whole of the defenders, terrified by the affair of the
barriers, having abandoned it with precipitation
without having had time to burn the large quantity
of vessels in construction and wood contained in a
small neighbouring arsenal, from which the inces-
sant fire of the gunboat which was anchored near
had kept them during the whole night. Unfortu-
nately the mandarins, faithful to their barbarous
traditions, had on leaving put to death the unfor-
tunote Annamites, Christians, and others, who
were imprisoned in the citadel, and whom they
had chained in enclosures surrounded with spikes,
chevaux de frise, and combustible materials,
which were set fire to. A certain number of men
of strong constitutions, had, however, been able to
escape, some safe and sound, but others injured ; we
picked them up here and there concealed in the
bushes, and so terrified that they hardly knew
whether to look upon us as saviours or murderers."
The report terminates in these words :
" To sum up—the expedition of Bien Hoa, accom-
plished in four days, has had for its results the com-
plete destruction of the camp of Mihoa, situated at
three leagues from Segon ; the taking of three forts
and the blowing up of a fourth ; and the total eva-
cuation of the province of Bien-Hoa by the army of
the King Tu-llue, who, fearing to be cut off on the
road to Hue, which is in course of construction, fled
in disorder across the mountains, abandoning all
the forts, which had been accumulated with so
much difficulty one upon the other, and burning
the magazines (the remnant of this army has re-
tired towards the provinces of Ben Thuau, beyond
Lower Cochin China); the taking of 48 pieces of
cannon, a quantity of excellent timber, and 15 royal
junks, of which 10 are of near 200 tons burthen ;
and lastly, the possession of the citadel, in which,
notwithstanding the damage which the enemy
sought to effect, we can now instal a respectable
garrison with an hospital of 100 beds in a magnifi-
cent country, without marshes. This territory can
easily support the cavalry, which, when joined to a
-without relaxationwill in a short time purge this
frontier from the marauders formed by the remains
of Tu-Due. The necessity of pursuing
harassed, necessitas.a.
might still find demoralised enemy which
to rally if not continually
meansfrequent movements, and de-
mands all my attention. It is s thus impossible at
out all those by whom I have
this moment to vo_ntio:.
been so ably seconded decisive
t whom I have
been so ably seconded in ti decisive ope I
Spaniards
must limit myself to stating your Excellency
that all have done their
duty with zeal
and courage ; that the
have con-
tinued to give,. with their small army, the ,

most loyal assistance ; and lastly, that the marine,
as in all these combined operations, has ably sup-
ported a double share of its fatigues and dangers.
I have confided the command of the province of
Bien-Hoa to Lieut.-Col. Domenech Diego, who,
strongly established in the citadel, will overrun the
province with his movable column. The cavalry
which I have left him, and which will find means of
subsistence everywhere in the district, will be of
great utility. At the same time the Comte division
will watch the country towards the prefecture of
Hayen, whilst the Renommee with its company of
landing troops, will advance to meet him, in making
a passage through the numerous stockades with
which this natural channel has been defended, in
the fear of an attack by water, upon a point where
the treasury and magazines of the enemy's troops
were placed."
La Paine has the following :—" The news oft e
success obtained by the French troops in Cochin
China is confirmed. The port of Bien-Hoa has been
occupied, and the reports current of the loss sus-
tained by our expeditionary corps are very much
exaggerated."

La Patrie publishes the following details :
" Rear-Admiral Bonard, with 3,000 men, advanced
against Bien-Hoa on the 10th of December ; at the
same time a division of gunboats was sent up
the canals which surround the town, and tra-
versed it in all directions. The attack commenced
on the 15th at daybreak. At 8 o'clock the steam
gunboats Avalanche, Alarme, and Fusee, sup-
ported by smaller gunboats, Nos. 19 and 20, ad-
vanced within four cables' distance of the forts, and
opened a heavy, well-sustained fire. The Annamites
responded with great vigour, and the Alarme, rid-
dled by balls after two hours' firing, became a wreck.
The defences on the river were stormed and car-
ried by our sailors to the shout of Vive l'Em-
pereur P Meantime the land forts were attacked
by our troops, after one hour's heavy cannonading.
The citadel and outworks were carried by storm.
At 4 p.m. the Annamites retreated, leaving the town
and a large amount of materiel de guerre in our
hands. On the next day a division of French
troops, consisting of the 101st Regiment of the Line,
the Chasseurs-a-Pied, and two battalions of marines,
were sent in pursuit of the Annamite army. This
affair, very glorious for our arms, and of great im-
portance for our interests, costs us only an insignifi-
cant loss. At the same time other engagements
took place between our troops and the Annamites
on different points, in which as usual the same de-
votion and courage were displayed."