Course of construction, guaranteed interest on the bonds of the companies and arranged for the division of revenue between the companies, the reserve fund and the state.
At the same time a new General Reserve Fund was created, made up chiefly of the surpluses of the old General Reserve, Special Reserve, and Conversion Economies funds.
If such drafts upon the reserve fund become necessary, they are to be made good in the following years out of the surplus above mentioned.
It may be added that besides the General Reserve Fund and the Conversion Economies Fund, there existed another fund called the Special Reserve Fund.
All interruptions are not so costly, for in shallower waters, with favourable conditions of weather, a repair may be only a matter of a few hours, and it is in such waters that the majority of breaks occur, but still a large reserve fund must be laid aside for this purpose.
The Conversion Economies Fund was also placed at the free disposal of the Egyptian government- The General Reserve Fund ceased to exist, but for the better security of the bondholders a reserve fund of Li,8oo,ooo was constituted and left in the hands of the Caisse to be used in the highly improbable event of the land tax being insufficient to meet the debt charges.
The reserve fund was created primarily to make good any deficiency in the revenues below the amount required to pay the interest due.