§ MR. LABOUCHERE (Northampton)I beg to ask the Under Secretary of State for Foreign Affairs whether the Persian Government has been induced, by the intervention of Her Majesty's Representative at Teheran, to pay to the Imperial Tobacco Corporation of Persia the sum of £500,000, in consideration of having abrogated the concession granted to that company; whether he is aware that the capital of the company was £652,000, of which £297,400 and £2,600 founders' shares, were paid to a company called the Eastern Concessions Syndicate, which appears to have acquired the concession from Mr. Gerald Francis Talbot, on 3rd May, 1890, and to have sold it to the Imperial Tobacco Corporation of Persia on 3rd November of the same year; whether he will lay upon the Table of the House copies of contract, dated 3rd May, 1890, between Mr. Gerald Francis Talbot and the Eastern Concessions Syndicate; contract dated 3rd November, 1890, between the Eastern Concessions Syndicate and the-Imperial Tobacco Corporation of Persia; contract, dated 19th September, 1890 between the Eastern Concessions Syndicate and John Byron Dawes, relating to 1521 the underwriting of a portion of the capital of the Imperial Tobacco Corporation of Persia Company; all of which contracts are alluded to in the prospectus of the Imperial Tobacco Corporation of Persia, published 3rd November, 1890; and the names of the persons constituting the Eastern Concessions Syndicate; and whether he is aware that in the aforesaid prospectus it was stated, with a view to secure subscriptions, that the net annual profits from the concession accruing to the Corporation were £371,875?
THE UNDER SECRETARY OF STATE FOR FOREIGN AFFAIRS (Mr. J. W. LOWTHER,) Cumberland, PenrithThe Persian Government have agreed to pay £500,000 as compensation to the Imperial Tobacco Corporation for the abrogation of their concession. The concession provided for a reference to arbitration in case of dispute between the parties. When the concession was abrogated, the Corporation pressed for arbitration. The Persian Government, however, were anxious to settle the matter without such a reference, and, at the request of both parties, Her Majesty's Government gave their good offices for bringing about an arrangement. The information furnished by the Corporation was that their capital was £650,000, dealt with as follows: Paid for the concession to the Eastern Concessions Syndicate, Limited. £300,000 (£83,000 in cash, and £217,000 in shares); -cash sent to Persia and expended and remaining in London, £350,000; total, £650,000. The Syndicate had acquired the concession from Major Talbot, to whom it had been granted by the Shah of Persia. There fire no copies of the documents mentioned in the third and fourth paragraphs of the hon. Member's question in the possession of the Foreign Office.
§ MR. LABOUCHEREIs the hon. Gentleman aware that the documents referred to are mentioned in the prospectus, and anybody is entitled to go and look at them; consequently I ask that before a final settlement is made Her Majesty's Government should obtain a copy of these documents from Somerset House in order that the atrocious swindle may not be committed which is contemplated by Her Majesty's Government.
§ *MR. SPEAKEROrder, order! That is not a question to be answered
§ MR. BARTLEY (Islington, N.)On a point of Order I would ask whether the expression just used can be withdrawn, as it has been freely stated across the floor of the House that "he has got it out"?
§ *MR. SPEAKERI took notice of the expression, and, thinking that the question might be answered, I requested that a question put in that form should not be answered; and I meant thereby to mark my sense that the expression was unparliamentary and altogether unsuited to this House.
§ MR. CUNINGHAME GRAHAMMay I ask the hon. Gentleman whether the Tobacco Corporation have expended any money at all on any useful purpose in Persia for which the Corporation should expect to receive an indemnity of £500,000?
MR. J. W. LOWTHERYes, Sir, the Corporation have expended a large sum in bringing their concession into operation. I cannot give the hon. Member the figures at present, but I think he will find, when the Return is laid on the Table of the House, that they are very clearly stated.
§ MR. CUNINGHAME GRAHAMI am not sure that I have made my meaning clear. Of course I understand that large sums have been expended in Persia; but were they expended in acquiring the concession, and was anything of a practical nature expended to the benefit of the people of Persia in any way, for, as the matter stands, it would appear that the money was expended in "squaring" the Persian officials?
MR. J. W. LOWTHERMy answer was intended to cover the expenses—perfectly proper and legitimate and natural expenses—to which the Corporation have been put in bringing into operation the concession they had obtained, such as in the employment of servants and the purchase of buildings and materials.
§ MR. PICTON (Leicester)Will the hon. Gentleman tell us whether the money paid in compensation is being lent by the Russian Government for that purpose? Is he aware of that? Could he also furnish to the House the names of the gentlemen forming the syndicate?
MR. J. W. LOWTHERI am not aware that the money has been lent by 1523 the Russian Government. As to the other matter, I am afraid I must ask for notice.
§ MR. TIMOTHY HEALY (Longford, N.)Does the hon. Gentleman know how many Baronets on the other side of the House are connected with this Corporation?
§ [No reply was given.]