IN THE BALKANS.

Dominion, Volume 2, Issue 458, 17 March 1909, Page 7

IN THE BALKANS.

FINANCIAL SCHEME. RUSSIA, TURKEY, AND BULGARIA. ARRANGEMENTS CONCLUDED. WY TKI.KCIUIMI—riIKSS ASSOCIATIO.T-mi'VUIGUT.) (Rec. March IG, 10.7 p.m.) N London, March IG. Tho Russo-Turkish financial arrangements have been concluded. Tho compromise frees Turkey from paying tho Russian war indemnity for forty years, and enables her to realise 125 million francs (£5,000,000). PEACE PROSPECTS "AT A MINIMUM." SERVIA'S REPLY. AUSTRIA-HUNGARY DISSATISFIED. Belgrade, March 15. Servia's reply to Austria-Hungary is conciliatory in tone. (Rec. March 16, 9.10 p.m.) Vienna, March 16. Austria-Hungary is dissatisfied with Servia's determination to throw tho onus of defending her interests upon tho Powers. Berlin, March 16. Tho German inspired press describe Servia's reply to Austria-Hungary as almost mocking in its evasiveness, and declared ;hat it rediices the prospects of peace to an extreme minimum. London, March 16. Tho Belgrade correspondent of "Tho Times" says that if Vienna insists on the complete capitulation of Servia, the nest few days will be fraught with grave apprehension. "THE TIMES" ON RUSSIA'S FINANCIAL SCHEME. According to the St. Petersburg correspondent of "The Times," the arrangement was to take tho following form:—Of the remaining 70 yearly instalments of the Turkish war indemnity, amounting altogether to about 22 millions sterling, Russia cancels a sufficient number to enable Turkey to borrow the sum she demands from Bulgaria—namely, 125 million francs (,£5,000,000), Bulgaria undertaking to reimburse Russia to the extent of 82 million francs (,£3,280,000) in the form of an annual instalment of about 5,000,000f. (.£200,000), interest on 82,000,000f. (.£3,280,000), and an additional 3,000,000f. (.£120,000) for sinking fund. Thus the Treasury will continue to receive a sum equivalent to the annual instalment paid by Turkey. Had Bulgaria borrowed 82,000,C00f. abroad, the actual burden on her exchequer would have been as great, and she would probably havo had to consent to financial control. Commenting editorially, "The Times" cays:- " Turkey and Bulgaria appeared only yesterdaj to be equally resolved to adhere to the positions which they had severally taken up, Turkey obdurately refused to take loss thai .£5,000,000 in satisfaction of her claims. Bulgaria as obdurately refused to pay more thar the £3,280,000 named in her latest Note.' After commenting on the way in which Jf Isvolsky's proposal relieves this tension, "Th< Times" adds:—"The plan is based upon th< circumstance that Turkey has never been abli to pay off the indemnity for which she became liable to Russia after tho war of 1876. Then aro still, it seems, about ,£22,000,000 of the in demnity outstanding, and this sum is payable to Russia by yearly instalments of aboui .£320,000, which extend over the next 70 years The offer which Russia makes is, to cancel si many of these instalments as will cnablo Tur key to borrow the sum which she claims fron Bulgaria, namely, .£5,000,000. Turkey will therefore, be able to procure without delay i substantial amount of the capital which sh< so urgently needs for the successful prosecutici of tho administrative reforms that are indis pensablo to heir moral and material develop ment. . . . '' •■'.'■ . ,T *• "Bulgaria gains tho difference bctweei £5,000,000 and the ,£3,280,000 which she is ti repay to Russia. The debt to tb? latter Powc 'L.,? ' )0 P a . id ' oflF by annual instalments o ,£200,000, which are to meet the interest and fr provide a sinking fund. . . . Russia forgoes fo the present the ,£320,000 a year which Turlw has been paying her. She will receive instead from Bulgaria .£200,000. .Seldom, we imagine has it seemed possible to attain so many am such varied ends of high importance at so smal an outlay. Russia may well be proud of th Minister who has conceived so statesmanliko deiiign."