SARDINIAN LOAN. (Hansard, 16 June 1856)

THE CHANCELLOR OF THE EXCHEQUER

Mr. FitzRoy, it will doubtless be in the memory of the Committee, that in making the financial statement of the year, a short time since, I announced, on the part of the Government, that they intended to propose a loan of an additional £1,000,000 to the Sardinian Government, in fulfilment of the spirit, although not of the letter, of the Convention of last year. That Convention was entered into in December, 1855, it was signed at Turin, and the ratifications were sent over to this country. By some accident a short delay took place at Paris in the transmission of those ratifications, and the consequence was, that the Bill founded on the Convention was not introduced into Parliament quite as early as may have appeared consistent with the date of the signature of the treaty. It was not supposed at the time that that accident would be attended with any material consequences. No blame, however, attaches on account of it to the Sardinian Government; if there is any responsibility in the matter Her Majesty's Government are responsible. However, the Convention having been signed at Turin in January, 1855, the Bill founded upon it was introduced, I think, at the end of March or the beginning of April, and received the Royal Assent on the 26th of April. The stipulations of that Convention were, that £1,000,000 should be advanced as a loan to the Sardinian Government within a year after the payment of the first instalment, and that, if the war should not be brought to a conclusion within a year after the payment of the first instalment, then a second £1,000,000 should be advanced under the like terms and conditions 1498 as the first. I will now, Sir, beg to call the attention of the Committee to the precise dates of these transactions. The Act of Parliament giving effect to the Convention received the Royal Assent on the 26th of April 1855, and the ratifications of the treaty of peace were exchanged on the 27th of April, 1856—that is to say, one year and one day after the day on which the Act received the Royal Assent. The application on the part of the Sardinian Government for the first payment was, I believe, received on the day, or even before the day, on which the Royal Assent was given to the Bill, but the actual payment of the first instalment from which, according to the stipulations of the Convention, the year was to be reckoned, was made on the 3rd of May, six days subsequently; therefore, according to the strict interpretation of the treaty, the second sum of £1,000,000 did not become payable; whereas if the payment of the first instalment had been made one day before, instead of six days after—the 27th of April—the faith of this country would have been engaged to advance the second £1,000,000. I have now stated the facts with regard to the literal obligations of this country. With regard to the spirit of the treaty, it is to be observed that it was made for the purpose of enabling the Government of Sadinia to carry on the war in which she and her Allies were engaged. The Government of Sardinia sent over troops which were engaged in the last campaign; they also made preparations for a second campaign, in the event of peace not being concluded at Paris; and, although the actual terms of the treaty do not bind Her Majesty's Government to issue a second sum of £1,000,000, unquestionably the contingency contemplated by the treaty has arisen—that is to say, preparations for a second year of hostilities have been made by the Sardinian Government. I may also state that it appears from an authentic document, communicated by Count Cavour to Lord Clarendon, at Paris, and laid before the Sardinian Parliament, that the expenses of the expedition, not later than the close of last year, had amounted to no less than 75,000,000 francs, a sum which considerably exceeds the £2,000,000 proposed to be lent to the Sardinian Government in the shape of a loan. I trust, after this explanation, the Committee will see that, consistently with good faith and the spirit of our engagements with the Sar- 1499 dinian Government, Her Majesty's Government cannot do otherwise than propose this additional advance. Considering, too, the friendship which the Sardinian people entertain towards this country, as manifested by the gallanty and fidelity of their army, and by the uninterrupted amity and good faith with which their Government has acted towards the Government of Her Majesty, I hope the Committee will not hesitate to set their seal on this contract, and, without any difference of opinion, to assent to the Resolution I have placed in the hands of the Chairman. Resolved—"That the Commissioners of Her Majesty's Treasury be authorised to issue, out of the Consolidated Fund of the United Kingdom of Great Britain and Ireland, the sum of One Million Pounds sterling, during the present year, by way of Loan, to the Sardinian Government, in accordance with the terms of a Treaty concluded between Her Majesty and the King of Sardinia.