persuaded Ismail to reinstate the law (enacted by him in 1871 to raise money and later repealed) that allowed landownership and tax privileges to persons paying six years' land tax in advance. Ismail tried to reduce slave trading and with the advice and financial backing of Yacoub Cattaui extended Egypt's rule in Africa. In 1874 he annexed Darfur, but was prevented from expanding into Ethiopia after his army was repeatedly defeated by Emperor Yohannes IV, first at Gundat on 16 November 1875, and again at Gura in March of the following year. War with Ethiopia Ismail dreamt of expanding his realm across the entire Nile including its diverse sources, and over the whole African coast of the Red Sea. This, together with rumours about rich raw material and fertile soil, led Ismail to expansive policies directed against Ethiopia under the Emperor Yohannes IV. In 1865 the Ottoman Sublime Porte ceded the Ottoman Province of Habesh (with Massawa and Suakin at the Red Sea as the main cities of that province) to Ismail. This province, which neighboured Ethiopia, first consisted of a coastal strip only but expanded subsequently inland into territory controlled by the Ethiopian ruler. Here Ismail occupied regions originally claimed by the Ottomans when they had established the province (eyaleti) of Habesh in the 16th century. New economically promising projects, like huge cotton plantations in the Barka delta, were started. In 1872 Bogos (with the city of Keren) was annexed by the governor of the new "Province of Eastern Sudan and the Red Sea Coast", Werner Munzinger Pasha. In October 1875 Ismail's army try to occupied the adjacent highlands of Hamasien, which were then tributary to the Ethiopian Emperor, and suffered defeat at the battle of Gundit. In March 1876 Ismail's army tried again and suffered a second dramatic defeat by Yohannes's army at Gura'. Ismail's son Hassan was captured by the Ethiopians and only released after a large ransom. This was followed by a long cold war, only finishing in 1884 with the Anglo-Egyptian-Ethiopian Hewett Treaty, when Bogos was given back to Ethiopia. The Red Sea Province created by Ismail and his governor Munzinger Pasha was taken over by the Italians shortly thereafter and became the territorial basis for the Colony of Eritrea (proclaimed in 1890). Suez Canal Ismail's khedivate is closely connected to the building of the Suez Canal. He agreed to, and oversaw, the Egyptian portion