With the exception of a small force left at Alexandria, Port Saïd, and Ismailia, the whole of the British army was concentrated in Cairo, to be reviewed by the Khedive, in the square in front of the Palace of Abdin. The review, which was preceded by a march through the native quarter of the city, took place on the very spot where Arabi and his mutinous troops had defied the Khedive just a twelvemonth before.
The British soldiers, in spite of the hardships of the campaign, presented an imposing appearance, the Indian regiments especially attracting attention.
As soon as the effervescence which followed the restoration had a little subsided, the Egyptian Government and its English advisers began to take thought for the morrow. A decision was arrived at to reduce the British forces to 12,000 men, which henceforth constituted the Army of Occupation. The Egyptian army having been disbanded, and there being no other native force available to maintain order, it became absolutely necessary, apart from any political considerations, to retain this number of Sir Garnet Wolseley's soldiers.
In announcing their intentions, the British Government informed the Egyptian Ministry that England was prepared to defray all expenditure incurred in the suppression of the rebellion, the date of the conclusion of which was fixed at the 30th September. It was also intimated that from that date Egypt would be expected to repay all extraordinary expenses which the retention of the Queen's troops in Egypt would entail on the Exchequer of the United Kingdom. The contribution for the 12,000 men to be retained was fixed at £4 a month per man, making a maximum monthly charge of £48,000. The Egyptian Government was at the same time informed that it was desired to withdraw the troops from Egypt as soon as circumstances would permit, and that such withdrawal would be effected from time to time as the security of the country would allow.
Pursuant to the intention above indicated, arrangements were at once made for a considerable reduction in the strength of the Army of Occupation. The Indian Contingent embarked, and Sir Garnet Wolseley, as well as a great portion of the army under his command, left for England, Major-General Sir Archibald Alison assuming the command.