MR. GIBSON BOWLESI beg to ask the First Lord of the Treasury have His Majesty's Government considered that by Article VIII. of the Decree of Monharrem (8th December, 1881) any surplus arising from a modification in the Turkish Customs tariff in case of revision of the treaties of commerce was ceded by the Turkish Government for the service of the Turkish debt in an absolute and irrevocable mariner until the complete extinction of the said debt; and, in view of that cession, can he state how any part of any sums arising from an increase of Turkish Customs duties can be applied towards the provision of payments for the kilometric guarantee proposed to be given to the Baghdad Railway, or be in any other way used in guaranteeing that railway.
§ THE PRIME MINISTER AND FIRST LORD OF THE TREASURY (Mr. A. J. BALFOUR, Manchester, E.)A modification of the terms of Article VIII. would be necessary in order that any part of the surplus arising from an increase of the Customs duties might be applied to purposes other than the service of the Turkish Debt. The consent of the Council of the Ottoman Public Debt, who represent the bondholders, would be necessary for any such arrangement.
MR. GIBSON BOWLESI beg to ask the First Lord of the Treasury, are His Majesty's Government aware that on the 31st January, 1902, the directors-of the Anatolian Society, which has the concession for the construction of the Konia-Baghdad-Basra Railway proposed, by a written communication to the-Turkish Government, that the desired kilometric guarantee for the railway of £1,400,000 should be secured on an increase of the Turkish Customs duties,, on the creation of five monopolies of petroleum, alcohol, matches, cards, ands cigarette paper, and on an arrangement for the unification of the Turkish debt; will these monopolies render necessary the prohibition of import into Turkey of or the imposition of prohibitive duties on the five articles named; were His Majesty's Government consulted as to 221 this proposal; have they received a copy of the communication in question; and if so, will they lay it on the Table of this House.
§ MR. A. J. BALFOURHis Majesty's Government have not been informed of the communication to which my hon. friend refers, nor have they been consulted as to the proposal contained in it.
MR. GIBSON BOWLESHave the Government not received any information on this matter from the Ambassador at Constantinople?
§ MR. A. J. BALFOURI understand that we have no such communication from the Ambassador to place before the House.
§ MR. NORMAN (Wolverhampton, S.)I beg to ask the First Lord of the Treasury if he will state whom the British Government has negotiated with, or been in communication with, or derived its information from, in the matter of the Baghdad Railway. I beg also to ask the First Lord of the Treasury if he will state who are the members of the British group of financiers interested in the proposal to provide part of the capital of the Baghdad Railway.
§ MR. A. J. BALFOURThe answer to both these Questions is in the negative.
MR. GIBSON BOWLESI beg to ask the First Lord of the Treasury have His Majesty's Government received a copy of the Turkish Convention relating to the Anatolian Railway Company (Baghdad line) quoted by Mr. Vice-Consul Waugh in his report dated 9th March, 1903, as showing that the entire management of the line from Konia to the Persian Gulf is secured in German hands, independent of the nationality of the capital which may be raised to build the line; and, if so, when is it proposed to lay it upon the Table of this House.
§ MR. A. J. BALFOURA copy of the convention between the Turkish Government and the Anatolian Railway Company to which my hon. friend refers is in our possession. This convention, a 222 summary of which was published in The Times of yesterday, leaves the whole scheme of railway development through Asia Minor to the Persian Gulf entirely in the hands of a company under German control. To such a convention we have never been asked to assent, and we could not in any case be a party to it. The alternative arrangements which have lately been under our consideration were, on the contrary, designed to place the railway, including the existing Anatolian Railway, throughout its whole length from sea to sea, under international control, and to prevent the possibility of preferential treatment for the goods or subjects of any one country. In these arrangements it was suggested, inter alia, that equal powers of control, construction, and management should be given to German, French, and English interests. After careful consideration of these proposals, His Majesty's Government have come to the conclusion that they do not give to this country sufficient security for the application of the principles above referred to; and they have therefore intimated that they are unable to give the suggested assurances with regard to the policy which they might hereafter adopt as to the conveyance of the Indian mails by the projected route, as to facilities at Koweyt, or as to the appropriation of a part of the Turkish Customs revenue in aid of the contemplated guarantee.
MR. GIBSON BOWLESI am obliged to the right hon. Gentleman for his answer, and I congratulate the Government on their decision.