§ MR. LYNCH (Yorkshire, W.R., Ripon)I beg to ask the Secretary of State for Foreign Affairs whether he is aware that it is proposed to apply the funds at present absorbed by the deficits 958 in the Macedonian budget, and which will be sot free by the proposed increase in the Customs duties, of which the greater part are levied on British trade, towards finding the kilometric guarantee for the Baghdad Railway; whether His Majesty's Government adhere to the declaration made by Lord Lansdowne that it shall be a condition of their consent to an increase in these duties that the expenditure of the money so obtained shall be controlled by a competent body controlling also the finances of Macedonia; and whether he will take steps to secure, firstly, the regulation of Turkish military expenditure in Macedonia, and, secondly, the recognition of the principle that funds derived from an increase in the Customs shall be devoted, after satisfaction of the needs of the Macedonian budget, to the promotion of foreign trade with Turkey in general and not to the setting free of revenues for any particular enterprise.
§ THE SECRETARY TO THE LOCAL GOVERNMENT BOARD (Mr. RUNCIMAN,for Sir EDWARD GREY) Dewsbury,In reply to the first part of this Question, His Majesty's Government have no control over Turkish revenues, the allocation of which has not formed the subject of any agreement between the two Governments. 2. The increased revenue—less the 25 per cent, due to the bondholders—will, under the arrangement now under the consideration of the Porte, be devoted to meeting the deficit in the Macedonian Budget, which is already under the supervision of the Financial Commission. The establishment of this Financial Commission was accepted by Lord Lansdowne as the best control that it was practicable to obtain. 3. We have not stipulated for the regulation of Turkish military expenditure in Macedonia, but the Turkish Government have undertaken to make good from imperial funds all deficits in the Macedonian Budget, whether due to military or civil expenditure. 4. As at present estimated, the increased duty will be more than absorbed by Macedonia, and there will be no funds from this source for any other purpose; but, as will be seen when negotiations are concluded and Papers can be presented, His Majesty's Government have made some conditions which will be to the advantage of foreign trade.