§ 80. Colonel WEDGWOODasked the Secretary of State for Foreign Affairs whether, in addition to the 250,000 paid by us annually to Cyprus to make up the guaranteed interest on the Anglo-French guaranteed loan of 1855, we also are now paying the share of the interest on this loan which has formerly been paid by Egypt but which they now refuse to pay; whether this refusal to pay extends to other loan interest hitherto paid by the Egyptian Government as their share of the former Turkish debt; and whether, as Egypt has the benefit of the protection of the British Fleet, His Majesty's Government intend such a state of affairs to continue indefinitely?
§ The UNDER-SECRETARY of STATE for FOREIGN AFFAIRS (Mr. Godfrey Locker-Lampson)The Egyptian Gov- 2200 ernment are responsible for the service of the Ottoman loans of 1891 and 1894 guaranteed on the Egyptian Tribute, and for a payment of £72,000 a year towards the service of the Ottoman loan of 1855. By Article 18 of the Treaty of Lausanne, Egypt was freed from all other obligations relating to the Ottoman Public Debt on the ground that the above annual payments form part of the Egyptian Public Debt. Notwithstanding this, the Egyptian Government suspended these payments in July, 1924. After a decision by the Mixed Courts in June, 1925, and the Mixed Court of Appeal in April, 1926, the Egyptian Government resumed payment of the service of the loans of 1891 and 1894, but up to the present still remain in default on the payment of 272,000 a year towards the interest of the loan of 1855, and His Majesty's Government are at present advancing the amounts required to make up the deficiency under their guarantee for the interest on this loan. Frequent representations have been made to the Egyptian Government on the subject, and the steps to be taken to induce them to make good their default are under consideration.
§ Colonel WEDGWOODAre these advances made by us to the Egyptian Government: are they accepted by the Egyptian Government as debts due to us; and, lastly, are the French Government, who are responsible with the British Government for the interest on this loan, making any contribution or assisting us in these advances to the Egyptian Treasury?
§ Mr. LOCKER-LAMPSONAs a matter of fact, I am answering this question for the Financial Secretary to the Treasury, and I should be glad if any detailed questions on this subject could be put to him.