Balfour was the second son of Captain George Balfour of the East India Company marine service and Susan Hume (who was a sister of the radical MP Joseph Hume).
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He openly held anti-colonialist sentiments which Richard Grove suggests as being linked to the radical ideas of his uncle Joseph Hume, opinions that were also expressed by his cousin Allan Octavian Hume.
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Edward Balfour noted a Muslim group known as Jughi in Bukhara, whose "women go unveiled, and the men are careless in their religious duties." The group was known for practicing medicine, fortune-telling, and horse-trading, and wandered between Bukhara, Samarkand, and Karakul.