Formation of the Suez Canal Company

Background. Ferdinand de Lesseps, a French diplomat, sought to create a canal connecting the Mediterranean and Red Seas. The project gained momentum following the accession of Sa'id Pasha to the viceroyalty of Egypt in 1854. De Lesseps secured a concession from Sa'id Pasha, which authorized him to oversee the construction. This concession included specific profit-sharing arrangements between the founders, the Egyptian government, and shareholders.

Concession Terms. The original concession assembled by Lesseps and granted by Sa'id of Egypt in 1854 included stipulations regarding profit distribution. Ten percent of annual profits were reserved for founders, fifteen percent for the Government of Egypt, and seventy-five percent for shareholders. The company was given the right to free quarries and import equipment tax-free.

Diplomatic Context. Following the granting of the first concession in 1854, Lesseps traveled to secure diplomatic approvals. Britain, under Lord Palmerston, opposed the project due to competing interests in a railroad from Alexandria to Cairo. Lesseps made several trips to Britain between 1854 and 1858 to persuade Palmerston and the British public, despite the opposition.