§ Mr. E. GRENFELLasked the Prime Minister (1) whether, in view of the fact that Great Britain, under the Peace Treaty, undertakes to relieve Turkey of all liability in respect of the Turkish loans secured on the Egyptian tribute and that in the case of one of these loans, namely, that of 1855, the Turkish Government were liable to provide a sinking fund of 1 per cent. per annum, which should have extinguished the loan tome 23 years ago, and seeing that the Turkish Government allowed the sinking fund to fall into abeyance in 1875 and, meantime, the whole of the outstanding bonds have been drawn for payment at par, he will state whether the obligation of Great Britain to provide for the redemption of the loan is included as one of the liabilities taken over from Turkey;
(2) whether His Majesty's Government, after payment of the interest of the bonds from revenues sequestered from the Turkish Government, have in their possession any surplus funds on account of the service of the loan; if so, what was the original amount of such funds when received; whether they have been invested; and, if so, what is the present value of the investments?
§ Sir W. JOYNSON-HICKSHis Majesty's Government have not undertaken, under either Article 112 of the Treaty of Sevres or in the provisions of the Treaty of Lausanne, which supersede that Article, any obligation to provide for the annual sinking fund payments in respect of the Turkish guaranteed loan of 1855, which have for many years been in default. The existing arrangements under which payments for the service of the loan are made remain unmodified. 1739W The balance of any annual sums received above the amount required for interest payments has been invested, and has a present market value of about £500,000.