HC Deb 19 March 1878 vol 238 cc1594-5
MR. DODSON

asked Mr. Chancellor of the Exchequer, Whether Her Majesty's Government have, under the guarantees authorized by the Act 18 and 19 Vic. c. 99, been obliged to provide the half-year's interest recently due on the Turkish Loan of 1855, and specially charged upon the Egyptian Tribute, or any part thereof; and, whether he will lay upon the Table of the House an Account showing the amount, if any, so provided, and any Correspondence with the French, Turkish, or Egyptian Governments upon the subject?

THE CHANCELLOR OF THE EXCHEQUER

Sir, the Turkish Government—the Porte—did not provide the dividend on the Turkish Guaranteed Loan which fell due in February, and Her Majesty's Government, as an act of courtesy to the Porte, requested the Bank of England, in the first instance, to advance the amount temporarily, in order to give an opportunity for the Turkish Government to fulfil its obligations. After a reasonable time had elapsed, and the money had not been provided, it was found necessary to exercise the powers given to the Government by the Act of 1855, and to issue the amount of the interest and the commission, together with the interest and the commission on the sum advanced by the Bank, out of the Consolidated Fund. The amount so issued was £77,448. We have communicated with the French Government on the subject, and, no doubt, shall receive shortly a communication from them as to the course that is to be pursued. I may add that a portion of the charge of the Guaranteed Loan should have been defrayed out of the Egyptian Tribute, which the Khedive is bound, under the firman of the Porte, to remit direct to the Bank of England; but up to yesterday, no remittance had been received from His Highness, though, in answer to the remonstrance of Her Majesty's Government, it has been announced that a small payment on account of the tribute due to Turkey would be forwarded at once. This is the state of affairs, and as soon as the Correspondence is in a proper state, it shall be laid before Parliament. Her Majesty's Government have communicated the facts as they occurred to the French Government, and they are about to reclaim from that Government a moiety of the sum which they have issued from the Consolidated Fund, in accordance with the declaration exchanged between the two Governments in 1855.