HC Deb 10 March 1891 vol 351 cc585-7
MR. STANLEY LEIGHTON (Shropshire, Oswestry)

I beg to ask the Chancellor of the Exchequer if he can inform the House what is now the sum total of money derived from the taxation of Cyprus under the name of Turkish Tribute and applied towards the payment of the interest on the Crimean Loan guaranteed by England and France, and what is the amount of the surplus in the hands of Her Majesty's Government; and whether the Government have still under their consideration the expediency of capitalising the Turkish Tribute, and of thus relieving the inhabitants of Cyprus from heavy taxation?

THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN,) St. George's, Hanover Square

I am hopeless as to explaining the question of the Turkish Tribute in its relation to Cyprus to my hon. Friend. When Cyprus was taken over the payment of a Tribute amounting to something like £90,000 was made a condition of the transfer of Cyprus. It is an engagement to Turkey, and an engagement which cannot be broken for the sake of lightening the taxation of Cyprus. On the other hand, Turkey has to find the interest on the Crimean Loan guaranteed by England and France, and the bulk of the Tribute is applied to that purpose; if not applied to that purpose, it would have to be handed over to the Porte, and no part could be remitted in the interests of the taxpayers of Cyprus. The Tribute is, as my hon. Friend is aware, charged on the Revenues of Cyprus, which Revenues have also got to meet the cost of administration. The Revenues are insufficient for that purpose, and a grant in aid has annually to be made. It is, therefore, difficult to say how much Cyprus pays towards the Tribute; it is assisted in that payment by the grant in aid made by this country. The question of capitalising the Tribute is still under the consideration of Her Majesty's Government, but no great anticipations of large relief to the inhabitants of Cyprus ought to be formed as the result of a capitalisation.

MR. STANLEY LEIGHTON

Can my right hon. Friend tell me how much money has come from Cyprus, and what is the amount of the surplus now laid up in the Treasury?

MR. GOSCHEN

The surplus laid up in the Treasury has been held back as applicable to a Sinking Fund on the guaranteed amount.

MR. STANLEY LEIGHTON

What is the amount?

MR. GOSCHEN

I cannot state the exact amount; but I think it is something like £50,000 or £60,000. It is an accumulation since the beginning. It is impossible to separate what Cyprus pays in tribute and what in other ways.

MR. STANLEY LEIGHTON

I beg to give notice that I will call attention to the question on the Estimates.

MR. STANLEY LEIGHTON

I beg to ask the Under Secretary of State for the Colonies whether a sum of £92,000 a year is still charged, under the head of Turkish Tribute, upon the taxpayers of Cyprus, and is still applied by the British Government towards the payment of the interest on the Crimean Loan guaranteed by England and (France; and whether there is any precedent in any other colony or dependency under the Colonial Office for a charge over and above the costs of administration being levied out of the local taxation and applied to Imperial purposes?

THE UNDER SECRETARY OF STATE FOR THE COLONIES (Baron H. de WORMS,) Liverpool, East Toxteth

The answer to the first part of my hon. Friend's question is Yes. The second part is argumentative, and appears to be framed under some misapprehension. Cyprus is not a British Colony or under the sovereignty of the Queen; but it is occupied and administered under special arrangement with the Sultan, with which my hon. Friend is, no doubt, familiar. I may, however, observe that there are many cases in which some annuity is paid out of the Revenues of a British Colony to the former ruler or his descendants, in compensation for the loss of income arising from the cession.

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