HC Deb 19 May 1892 vol 4 cc1283-5
MR. STANLEY LEIGHTON (Shropshire, Oswestry)

I beg to ask the Chancellor of the Exchequer if he can inform the House what is the total amount derived from the taxation of Cyprus which has up to the present date been paid into the British Treasury, and what is the amount which has been paid out of moneys so received on account of the obligations of the French Government under the French guarantee for the payment of the Ottoman Guarantee Loan; what is the amount now standing to the credit of the Cyprus Tribute Fund; and whether the Government have yet matured any plan for the capitalisation of the Cyprus Tribute, or for relieving the island taxpayers of the burden, or for applying the sums now standing to the credit of the Cyprus Tribute?

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

It is misleading to say baldly that sums derived from the taxation of Cyprus are paid into the British Treasury. Cyprus as such pays nothing into the British Treasury; but under treaty she is obliged to pay yearly to Turkey about £93,000, representing the average tribute which Turkey drew from the island before it was placed under England. This is an obligation from which Cyprus cannot release herself, and from which England cannot release her. It represents no new charge on the island. It was paid by the island to Turkey under the Turkish rule, and it is paid to Turkey still. It is true that England obtains an incidental benefit from the arrangement. England and France guaranteed the Turkish Loan of 1855. Turkey does not pay from her own resources the interest of that loan. England and France must, therefore, pay the interest themselves, or seize the revenues which Turkey gave as security for the loan, or England must detain the money which Cyprus pays through her to Turkey. The duty of the British Government was clear in the matter. It was to act on the third of these alternatives. The tribute is nearly £93,000 a year. Of this £82,000 is applied to meet the interest of the loan jointly guaranteed by England and France. The surplus amount standing to the credit of the Cyprus Tribute is now £77,000, which we consider due to the Sinking Fund of the Turkish Loan, which Turkey does not provide. No plan such as the hon. Member describes has been matured, and, indeed, could not be matured without the consent of Turkey.

MR. STANLEY LEIGHTON

Can the right hon. Gentleman give the figures showing the whole amount of the Cyprus Tribute paid into the Treasury?

MR. WINTERBOTHAM (Gloucester, Cirencester)

Will the right hon. Gentleman say whether Turkey does anything in return for this £93,000 to benefit the people who have to pay the money?

*MR. GOSCHEN

No, Sir, nothing at all. It is an arrangement by treaty made when Cyprus was taken over by this country, but I may say that the grants in aid to Cyprus made by this country would form a large set-off against the money which Cyprus has had to pay to Turkey. My hon. Friend will see that if he multiplies the annual amount by the number of years it has been paid, he will easily be able to arrive at the gross amount paid, not to the British Treasury as he said, but to Turkey as interest on the Guaranteed Loan.

MR. STANLEY LEIGHTON

Should the grants in aid be deducted from the sum mentioned by the right hon. Gentleman?

*MR. GOSCHEN

The grants in aid have nothing to do with the tribute. It is due to Turkey, not to England. The grants in aid have been for the assistance of the island finances.

MR. STANLEY LEIGHTON

The right hon. Gentleman cannot state the total amount?

*MR. GOSCHEN

It is simply a multiplication of the figures I have given.

MR. STANLEY LEIGHTON

By how many years?

*MR. GOSCHEN

I have not it in mind just now. I will give it if my hon. Friend cannot otherwise ascertain.

MR. SUMMERS (Huddersfield)

Are any negotiations taking place with the Sublime Porte as to the proposed conversion?

*MR. GOSCHEN

There have been none for some years.