HC Deb 19 June 1893 vol 13 cc1324-6
COLONEL BRIDGEMAN (Bolton)

I beg to ask the Chancellor of the Exchequer whether, after the failure of Turkey to pay the interest on the loan guaranteed in 1855 by England and France, the obligation to provide the interest fell equally upon the two guaranteeing Powers; whether, since 1882, a sum raised by taxation in Cyprus, under the designation of "the Turkish Tribute" (supplemented occasionally by a grant in aid from the British Treasury) has been used to meet the joint obligations of England and France, and to create a Sinking Fund; what is the sum total of the payments since 1882 to the present time which, but for such application of the tribute, would have been paid by France; what is the total amount of the "grants in aid" which have been paid out of the British Exchequer to Cyprus; and what is the present amount of the Sinking Fund?

MR. PIERPOINT (Warrington)

At the same time I will ask the right hon. Gentleman whether the French Government has been negotiated with as to its consent that the Cyprus Tribute should be commuted; and, if so, whether the French Government has refused to consent; what is the cost of Cyprus to England, taking into account the fact that a largo part of the guarantee of England as to the Turkish Loan of 1855 is paid to the bondholders out of taxes imposed on the people of Cyprus; whether the Customs Duties of Smyrna and Syria are paid in part satisfaction of the said loan; and whether the Council of Cyprus has on several occasions protested against their taxes being used to pay obligations incurred by England and France in 1855?

* SIR W. HARCOURT

The answer to the first and second questions of the hon. and gallant Member is, Yes. As regards the third, of course the sum total is the total of the moneys due upon the loan of 1855, to be equally divided between England and France. The total amount of the grants in aid is £465,000, and the present amount of the Sinking Fund is £88,000. In regard to the question of the hon. Member for Warrington, the answer to the first and third inquiries is, No. The answer to the second cannot be stated except at great length, but the hon. Member will find the information in successive Financial Statements with reference to Cyprus which are before the House. With regard to the last question, it is a matter of indifference to the people of Cyprus, so long as the tribute has to be paid, whether it is paid to the original claimant or whether it is stopped on its way by the creditors of Turkey—England and France.

COLONEL BRIDGEMAN

May I ask whether there is any prospect of the Turkish Tribute being capitalised?

SIR W. HARCOURT

That is a very large question. I am not prepared to answer it. Who is going to find the capital?

MR. PIERPOINT

Does the Chancellor of the Exchequer's affirmative answer extend to my question whether France has refused to consent to commutation?

SIR W. HARCOURT

No, I am not aware that there have been any negotiations as to the commutation of the tribute. If there have been I will inform the hon. Member of them.

MR. STANLEY LEIGHTON

Is not England, and not Cyprus, liable for the duo payment of the Turkish Tribute?

SIR W. HARCOURT

England undertook, as the price of getting Cyprus, to pay this sum from the income of Cyprus to Turkey. Turkey made default in a loan for which England and France guaranteed; and, therefore, instead of paying the amount direct to Turkey, it has been stopped in transitu, and is devoted to paying the debt which Turkey owes. It is a matter of indifference to the people of Cyprus whether the money goes to Turkey or to Turkey's creditors.

MR. STANLEY LEIGHTON

My question is whether the people of Cyprus ever agreed to pay?

SIR W. HARCOURT

I do not believe the people of Cyprus had anything to say to the matter.