the Treaty engagements of the Great Powers of Europe, recommended further by the active interference of the Foreign Minister of England at the time of emission, we feel that we have a strong and powerful claim upon your Lordship's interference to do us justice, the more especially as these securities, so solemnly assigned, are principally receipts of Customs and taxes payable at the port of Constantinople.

6. These duties and taxes have been hitherto received in good faith by the Ottoman Porte themselves, and up to October 1875 the sums required for payment were regularly transmitted by them to England; since January 1876 no payments have been made by the Ottoman Porte with respect to these loans. The Ottoman Porte, fully acknowledging the right of the bondholders to these securities, have repeatedly declared in the most solemn manner their earnest desire and readiness to hand over the said securities to a Commission of foreign bondholders to be appointed by them at Constantinople, so soon as some fair and moderate settlement can be made.

7. The other 6 per cent. Loans of Turkey, viz., the 1863, 1865, 1869, and 1873the two latter amounting to 48,000,000l.-were negotiated in France, and have as security the sheep, verghis, and tapou taxes, and the tithes of different vilayets of the Ottoman Empire, which have been more or less reduced and destroyed by the ravages of the unprovoked, unjustifiable, and unnecessary war caused by Russia, in the words of Lord Derby's despatch of the 1st May, 1877, "breaking through her Treaty engagements and violating the same," one of which was to respect and guarantee the independence and territorial integrity of the Ottoman Empire.

8. That we view with the greatest alarm the proposition now made by the Treaty of San Stefano, to parcel out and despoil the Ottoman Empire in such a way as to become virtually under the entire vassalage of Russia, and this breach of Treaty obligations, bad as it is, becomes more flagrant by the total want of regard paid to the international financial engagements of the Turkish Empire, and which for the first time a civilized nation, conqueror as she may be, ignores and sets at defiance the rights and property of third parties, creditors of such State.

9. That we further view with the greatest alarm and dismay such a monstrous and immoral principle, fatal alike to international good faith and honour, and contrary to all precedent. We have only, we feel confident, to point out to your Lordship that, from the Treaty of Vienna in 1815, to which the ten European Powers were signatories, until the latest one regarding the Papal States and the cession of LombardoVenetia to Italy in 1866, due and solemn respect has been paid by Europe (no matter under what conditions of things) to the international rights of third parties, and the existing debt of any country acknowledged, respected, and its interests fully and honourably secured.

10. We have therefore the greatest confidence in making this earnest appeal to your Lordship and Her Majesty's Government, believing that the time has now arrived, when we see day by day Constantinople menaced, and consequently international and British interests both defied and imperilled, that Her Majesty's Government, to whom we have only now to look for protection, will no longer delay urging upon the Ottoman Porte that the British interests under the Loans of 1858 and 1862 shall be secured, by their formally making over to the bondholders of these loans those duties and taxes which years ago were solemnly assigned and hypothecated to them as their security, and which are levied and collected at Constantinople.

11. We further trust, with regard to the other 6 per cent. Loans, that your Lordship's Government will insist, at any Congress or Conference of the Great Powers to settle the unhappy state of affairs in the East, that in any severance of territory from the Ottoman Empire the rights and interests of the foreign creditors of Turkey shall be protected in such a way that such territory so severed shall take a fair proportion of the external debt of Turkey, and that the taxes which are already hypothecated in such severed territory shall be secured as a first charge for the regular and punctual payment of its interest.

12. We are fully aware that the position of the finances of the Ottoman Empire, owing to the aggressive conduct of Russia, is such as to prevent the 6 per cent. bondholders from receiving the full amount of their interest and sinking fund. We therefore annex to this Memorial a scheme for a settlement of the same upon such a reduced and moderate scale as should secure the eager readiness of the Porte to accept as a most favourable settlement, and honourable to the Bondholders' General Committee, whose authority we have to propose it. We may summarize it as follows :— The existing Loans of 1858 and 1862 now amount to 8,799,300l., with hypothecated securities for payment of the same of 990,000l. per annum. It is proposed to reduce

this amount to 6,307,3801., and the sum required for the annual service to 364,0501. The amount of the 6 per cent. French Loans outstanding is 57,108,1007., with hypothecations amounting to 4,721,7941. It is proposed to reduce this amount to 34,472,3901., and the sum for its service to 1,520,850l. per year. The securities for the payment of the same would be to hand over to a Bondholders' Commission at Constantinople the Customs dues and taxes upon tobacco, salt, patents, and stamps collected and payable at that port, and which are already assigned and hypothecated for the use of the Loans of 1858 and 1862. This arrangement, loyally entered into by the Porte, would greatly simplify matters, releasing all the other taxes of the different parts of the Empire, at present hypothecated to the 6 per cent. French Loans, and render it a much more easy task for the Great Powers of Europe and Turkey herself to settle her financial engagements with her foreign creditors at any Congress or Conference that may take place.

In conclusion, we beg your Lordship's most favourable attention to these grave and earnest matters, affecting so materially a very large proportion of Her Majesty's subjects.

(Signed)

CHAS. FRED. HAMOND, Chairman of the United
Committee of English Bondholders.

JAMES LANDON, Deputy-Chairman of the General
Committee of English Bondholders.

Inclosure 2 in No. 41.

Proposals for Settlement of the Turkish 6 per cent. Loans by joint and combined action of the English and French Bondholders, both with their respective Governments, and at the proposed Conference.

1. NO arrears of interest to be paid.

2. Future interest and sinking fund to be paid as per annexed scheme.

3. Amount required for service of No. 2 to be received by a Joint Commission at Constantinople, and by them remitted monthly to a Committee to be nominated in London, and paid into the Bank of England, notifying the same in the public papers, such Commission at Constantinople to consist of three members, one named by English bondholders and one by the French, and one at Constantinople named jointly by the English and French bondholders.

4. The taxes, dues, and duties to be received and secured for the due service of the loans, to be those at present hypothecated to the Loans of 1858 and 1862.

5. The interest upon all the loans to be paid quarterly, say 1st February, 1st May, 1st August, and 1st November. The present sinking fund to be abandoned and commenced de novo at 50 per cent. reduction. The bonds already drawn to be first paid off in priority of drawing, at issue price, and twice a year as at present, say 1st February and 1st August.

6. The general debt to be arranged hereafter, the 6 per cent. bondholders agreeing to any scheme which does not exceed 50 as the price of issue, and 3 per cent. interest.

7. If, 15 years after, the finances of Turkey improve, the Porte (at its option) to increase the above rate of interest.

G 2

Sir,

No. 42.

Lord Tenterden to Mr. Hamond, M.P.

Foreign Office, April 20, 1878.

I AM directed by the Marquis of Salisbury to acknowledge the receipt of your letter of the 16th instant, forwarding copy of a Memorial addressed to Lord Beaconsfield, on behalf of the General Committee of the English Bondholders of the 6 per cent. Turkish Loans, and in reply I am to state to you that the questions referred to therein will be borne in mind.

I am, &c.

My Lord,

Mr. Guedalla to the Marquis of Salisbury.—(Received April 29.)

Gresham Club, St. Swithin's Lane, London, April 26, 1878. HEARING that there is some possibility of its being decided at the Congress of European Powers to levy tonnage dues for fifteen years in the Bosphorus on the mercantile marine of the entire world entering and leaving the Dardanelles, with the same Tariffs as the Isthmus of Suez, allow me, as Chairman of the English Committee of the General Debt of Turkey 5 per cent., to suggest to your Lordship that the proceeds should be specially devoted for paying interest to the holders of Turkish bonds in all countries.

Foreign Office, May 4, 1878.

Sir, I AM directed by the Marquis of Salisbury to acknowledge the receipt of your letter of the 26th ultimo, suggesting that the proceeds of any tonnage dues levied in the Bosphorus should be specially devoted for paying interest to the holders of Turkish bonds in all countries.

I am, &c.

My Lord,

Mr. Layard to the Marquis of Salisbury.-(Received May)

Therapia, May 19, 1878. AT the request of some gentlemen, including the leading merchants of Galata, who form a Committee for the protection of the holders of Turkish stock in Turkey, I have the honour to inclose, and to recommend to your Lordship's favourable consideration, a "mémoire" in support of the rights of the bondholders which they have been charged to maintain.

I have, &c. (Signed)

A. H. LAYARD.

Inclosure in No. 45.

Mémoire du Comité des Détenteurs de la Dette Ottomane en Turquie.

Resolutions de l'Assemblee-Générale tenue à Constantinople le 21 Mars, 1878.

1. L'ASSEMBLÉE charge un Comité exécutif de prendre devant qui de droit, tant en Turquie qu'à l'étranger, la défense des intérêts des détenteurs de la Dette Ottomane.

2. Ce Comité prendra la qualification de "Comité des Détenteurs de la Dette Ottomane en Turquie," et sera composé de vingt membres environ.

3. Sont nommés membres du Comité: MM. Alfred Caporal, Georges Coronio, Déodat Czunt, Charles Couteaux, Grégoire Cuppa, Emile Deveaux, Eustache Eugenidi, Foster (M. H.), C.B., Diaz Fernandez (de la Maison J. Camondo et Cie.), Salomon Fernandez, Hussein Effendi, Agop Keutchéoglou, Jean Lorando, Emile Mercet, Simon

Maksoud, Mikael Portogal, Stefanovich (Z.), Ternau Bey, Bernard Tubini, Michel Timoni, Georges Zarifi.

4. Tous pouvoirs sont donnés au Comité pour la rédaction de tous mémoires, de toutes requêtes, et pour l'envoi d'un délégué, s'il y a lieu, et où besoin sera. Le Comité s'adjoindra un conseil légal.

5. Un exemplaire des résolutions ci-dessus sera déposé dans chacune des principales banques de Constantinople, savoir :

Banque Impériale Ottomane.

Société Générale de l'Empire Ottoman.

Crédit Général Ottoman.

Crédit Lyonnais.

Banque de Constantinople.

Société Ottomane de Change et de Valeurs, pour recueillir les adhésions des détenteurs non présents à la réunion.

(Voir procès-verbal de la séance.-Annexes No. 5)

Mémoire pour les Détenteurs de la Dette Ottomane en Turquie.

Dès que la cessation des hostilités a rendu probable le règlement par un Congrès de la question Orientale, les créanciers de la Turquie dans les différentes parties de l'Europe ont été unanimes à penser que le moment était venu pour eux de se grouper en vue d'une action commune, pour la représentation et la défense de leurs droits.

Ce qui s'est fait en France, en Angleterre, en Hollande, en Italie devait se faire à plus fort raison à Constantinople. Pour les détenteurs de Turquie, il ne s'agit pas seulement, comme pour ceux de l'étranger, de sauver une portion de leur avoir, mais pour la plupart d'entre eux, leur avoir tout entier. Les créances sur les Etats étrangers ne servent en général qu'à un placement partiel des fortunes particulières; la plus grande partie, sinon la totalité, se place en fonds nationaux; c'est ainsi que pour tous ceux qui habitent la Turquie, qu'ils soient indigènes ou étrangers, les placements en fonds Turcs et en créances sur le Gouvernement Ottoman constituent, avec la propriété immobilière, le seul mode normal de placement.

La fortune des mineurs, même de nationalité étrangère, domiciliés en Turquie, celle des établissements publics nationaux ou étrangers de Constantinople ou des provinces (hôpitaux, écoles, mosquées, églises, orphelinats, &c.), est placée en fonds de la dette Ottomane. Sans multiplier les exemples, c'est en fonds de la dette Turque que le kassam, autorité chargée de la défense des intérêts des mineurs, place la fortune de ses pupilles; citons aussi le cas de l'hôpital Russe de Pancaldi (Constantinople) dont le capital de fondation était placé en titres de la dette publique Turque.*

Donc si les créanciers de la Turquie, quels que soient leur nationalité ou leur domicile, doivent être traités sur le pied d'une égalité parfaite, il faut reconnaître que la situation de ceux qui ont dans le pays même leur établissement, leurs placements, leur domicile, est particulièrement intéressante; leur voix ne pourra donc être méconnue par ceux qui auront pour mission d'assurer le repos et la stabilité en Orient, et qui comprendront combien ce repos et cette stabilité seraient précaires si la ruine générale devenait une chose définitive. Au surplus, la sympathie dont ces grands intérêts sont dignes ne leur fera certainement pas défaut; on en trouvait déjà l'expression, lors des Conférences de Constantinople, avant le commencement de la guerre, dans la bouche du Général Ignatieff lui-même; à leur tour, les Ministres des Affaires Etrangères d'Angleterre et de France ont déclaré qu'ils ne négligeraient pas les intérêts de la défense desquels nous nous occupons. (Annexes, No. 1.)

Mais le Congrès ne devra pas se borner à exprimer des désirs ou des vœux, il aura qualité et compétence pour donner par l'adoption de mesures pratiques satisfaction aux intérêts en jeu; il aura surtout qualité pour empêcher que ces intérêts ne soient indirectement atteints ou lésés par les résolutions qui pourront être adoptées sur les questions d'un caractère plus directement politique. Il est impossible que ceux qui délibéreront sur des questions de réorganisation administrative ou de réformes intérieures intéressant exclusivement certaines populations de l'Empire, ne s'occupent pas de questions intéressant leurs propres nationaux.

Ce n'est pas à raison du revenu payé par le Gouvernement Ottoman, mais à raison de sa sécurité présumée que ce mode de placement était adopté; car l'intérêt légal en Turquie étant de 12 pour cent, on pouvait trouver un emploi plus avantageux que les fonds publics Turcs.