'Treaty of Peace with Turkey. Signed at Sévres, August 10, 1920. [With Maps.]' [‎38v] (56/112)

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Article 242.
For the purposes of this Part, the Ottoman Public Debt shall be deemed to consist
of the Debt heretofore governed by the Decree of Mouharrem, together with such other
loans as are enumerated in Annex I to this Part. .
Loans contracted before November 1, 1914, will be taken into account in the distri
bution of the Ottoman Public Debt between Turkey, the States of the Balkan Peninsula
and the new States set up in Asia.
This distribution shall be effected in the following manner :
(1) Annuities arising from loans prior to October 17, 1912 (Balkan Wars), shall be
distributed between Turkey and the Balkan States, including Albania, which receive or
have received any Turkish territory ;
(2) The residue of the annuities for which Turkey remains liable after this distribution,
together with those arising from loans contracted by Turkey between October 17, 1912,
and November 1, 1914, shall be distributed between Turkey and the States in whose
favour territory is detached from Turkey under the present l reaty.
Article 243.
The general principle to be adopted in determining the amount of the annuity to be
paid by each State will be as follows :
The amount shall bear the same ratio to the total required for the service of the Debt
as the average revenue of the transferred territory bore to the average revenue of the whole
of Turkey (including in each case the yield ol the Customs surtax imposed in the year
1907) over the three financial years 1909-10, 1910-11, and 1911-12.
Article 244.
The Financial Commission shall, as soon as possible after the coming into force of
the present Treaty, determine in accordance with the principle laid down in Article 243
the amount of the annuities referred to in that Article, and communicate its decisions in
this respect to the High Contracting Parties.
The Financial Commission shall fulfil the functions provided for in Article 134 of
the Treaty of Peace concluded with Bulgaria on November 27, 1919.
Article 245.
The annuities assessed in the manner above provided will be payable as from the
date of the coming into force of the Treaties by which the respective territories were
detached from Turkey, and, in the case of territories detached under the present
Treaty, from March 1, 1920 ; they shall continue to be payable (except as provided
by Article 252) until the final liquidation of the Debt. They shall, however, be pro
portionately reduced as the loans constituting the Debt are successively extinguished
Article 246.
1 he I urkish Government transfers to the Financial Commission all its rights
under the provisions of the Decree of Mouharrem and subsequent Decrees.
I he Council of the Ottoman Public Debt shall consist of the British, French and
Italian delegates, and of the representative of the Imperial Ottoman Bank, and shall
continue to operate as heretofore. It shall administer and levy all revenues conceded
to it under the Decree of Mouharrem and all other revenues the management of
which has been entrusted to it in accordance with any other loan contracts previous
to November 1, 1914.
I he Allied Powers authorise the Council to give administrative assistance to the
1 urkish Ministry of Finance, under such conditions as may be determined by the
I inancial Commission with the object of realising as far as possible the following
programme :
The system of direct levy of certain revenues by the existing Administration of the
Ottoman Public Debt shall, within limits to be prescribed by the Financial Commis
sion, be extended as widely as possible and applied throughout the provinces remain
ing I urkish. On each new creation of revenue or of indirect taxes approved by the
Financial Commission, the Commission shall consider the possibility of entrusting
the administration thereof to the Council of the Debt for the account of the Turkish
Government.
The administration of the Customs shall be under a Director-General appointed
by and revocable by the Financial Commission and answerable to it. No change in the