It was intended to assign to the war department £T3,804,918, to the grand master of ordnance £T358,108, to the admiralty £T93,912, and to the ministry of finance £T2,443,202 for the payment of the war indemnities in Thessaly and other urgent liabilities, the estimated aggregate extraordinary expenditure thus amounting to £T6,700,140.
The 9,000,000 was sufficient to pay the Alexandria indemnities, to wipe out the deficits of the preceding years, to give the Egyptian treasury a working balance of LE 500,000 and thereby avoid the creation of a fresh floating debt, and to provide a million for new irrigation works.
After paying out of the capital the sums required for the indemnities due for the burning of Alexandria and the deficits of the years 1882 and 1883, it still had a million sterling, and boldly invested it in the improvement of irrigation.
Thanks to Hughs support and to the good offices of Otto and his brother Bruno, archbishop of Cologne and duke of Lorraine, Lothair was chosen king and crowned at Reims. Hugh exacted, as payment for his disinterestedness and fidelity, a renewal of his sovereignty over Burgundy with that of Aquitaine as well; he was in fact the viceroy of the kingdom, and others imitated him by demanding indemnities, privileges and confirmation of rights, as was customary at the beginning of a reign.
Back to top T ax and Indemnities A key question in assessing the value of a settlement deal concerns the impact of tax.
