ملف ١٩٠٤/٢٧٦٤ الجزء ٢ "سكة حديد بغداد: مفاوضات عامة ١٩٠٨-١٩١٠." [ظ‎‎٣‎٧‎٧] (٧٩٩/٧٦٩)

ASIATIC TURKEY.
CONFIDENTIAL.
[3427]
i/yVV- ■
[January 31.]
Section 1,
2 i
^1
Consul-General Sir A. Block to Foreign Office.—(Received January 31.)
13,
My dear Hardinge, Constantinople, January 27, 1908.
WITH regard to the Memorandum I sent you concerning the Konia Irrigation
scheme, &c., I wish to elucidate two points.
1. It would appear from my Memorandum that the area to he brought under
cultivation is only 80,000 deunums. The 80,000 deunums are the area brought under
cultivation by the draining of the lake of Karaviran. Besides this, it is expected that
by the canalization of the rivers an area of over 500,000 deunums will be brought
under cultivation, thus making in all over 580,000 deunums.
2. With regard to the advances made to the Government by the Bank, and stated
to be over 50,000,000 fr. (£T. 2,200,000), I find in the last published balance-sheet of
the Bank (31st August, 1907) that the Government owes them £ T. 2,080,964.
But it must be borne in mind that, according to the Convention between the
Bank and the Government, the former is obliged to open a credit account for the
latter of £T. 1,000,000. To this I add the £T. 926,230 which the Bank has yet to
receive from sums advanced on the security of revenues in the hands of the Debt.
The balance, namely £ T. 154,734, are other sums advanced by the Bank to the Civil
List, &c., of which I know no details. But the Bank is by no means in any danger
on this account, either as regards capital or interest.
First to cover the credit account of £ T. 1,000,000, the Government has delivered
to the Bank 50,000 bonds of the 1904 4 per cent. Loan, to the nominal value of
1,000,000/. At the rate of to-day this is worth £T. 1,000,000, so that the
£ T. 1,000.000 to the credit of the Government is fully covered.
’ Secondly, eventual reimbursement of the sums advanced on the security of the
revenues in the hands of the Debt (ceded revenues and “ revenus divers ”) is absolutely
assured.
There only remains then £T. 154,734, the reimbursement of which may be
problematical, but I imagine the Bank has no fears on this account. ^ ^
Again the advances to the Government are at 7 per cent., and the interest also is
assured in the first two cases. For the £ T. 1,000,000 by the annuity of £ T. 108,000,
which the Public Debt pays as a fixed charge on the surplus of the “ revenus
divers.”
This £ T. 108,000 is applied as follows :—
£ T.
Interest, 7 per cent, on £ T. 1,000,000 •• •• •• • * 70,000
Annual subvention paid by Government to bank for the maintenance of
Agencies .. .. • • • • • • • • • * 82 ’ 00Q
Less the coupon on the 50,000 bonds of the 1904 loan above mentioned in
the hands of the Bank, namely ..
152,000
44,000
Total
108,000
and for the sums advanced on the security of revenues, in the hands of idle Debt, there
is no fear of the interest not forthcoming. , .. .
The Bank then appears to me to he in a sound position, both as regards capital
and interest, of at any rate £T. 1,926,230 of its advances, and for the small remainder
I am sure the Bank is fully secure. w . . , ...
Prom the above, when it is remembered that 7 per cent, is the interest paid by
the Government, it is clear that the Bank is doing a profitable business with the
Government, and the greater part of its advances may be considered as a very fair
investment of a large portion of its paid-up share capital. It is not risking much.
I am, &c.
(Signed) ADAM BLOCK.
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