[Greek Loan.]

Proviso, however, that in the presumption that the resources of the country would continue to increase, this sum should, at periods hereafter to be determined, be increased proportionably.

Her Majesty's Government concurring entirely in the Report which has unanimously been adopted by the Representatives of the 3 Protecting Powers forming the Commission, and in these premises has further instructed me to urge on the Government of Greece the absolute necessity of adopting without delay the administrative and financial reforms recommended by them. Her Majesty's Government equally with the Governments of France and Russia, are unwilling to press unduly the Greek Government, and above all things are averse to retard the development of the industrial resources of Greece, and that in consequence the 3 Protecting Powers have in concert, with all due regard to the wants of the State, fixed the minimum of the sum to be paid at first by Greece towards meeting the charges on the Loan at 900,000 francs; that sum to be afterwards increased in proportion to the improved state of the Greek finances, at periods to be afterwards determined when the question respecting the Sinking Fund of the Debt shall be arranged.

In return for the moderation shown by the 3 Protecting Powers in fixing the amount, those Powers may well consider that they have acquired a right to expect and to require that the Greek Government will carry out such an effectual system of reform in the Departments of the State as will entirely remove all cause of future complaint in consequence of the failure of the Greek Government to fulfil engagements solemnly contracted towards the 3 Powers.

Her Majesty's Government, from the knowledge which they have acquired of the Financial Resources of the Country, feel assured that the Government will have no difficulty in setting aside the same as its first payment.

I am further instructed to add that if the Greek Government fails in discharging its duty in this respect, the only course left for the 3 Protecting Powers to pursue will be rigorously to exact the requisition of Article XII of the Treaty of 1832 (No. 159), by which Greece binds herself to lay aside the first produce of Greek Revenues towards the Interest and Sinking Fund of the Loan.

M. Condouriotis.

I have, &c.

THOS. WYSE.

SIR,

[Greek Loan.]

The Greek Minister for Foreign Affairs to the British Chargé

THE Communication dated the 20th October, 1859, which the Right Honourable Sir Thomas Wyse did me the honour to address to me, inviting the Hellenic Government, in the name of Her Majesty the Queen of Great Britain, to contribute to the settlement of the Loan of 60,000,000 by a yearly payment of 900,000 francs, has been taken into serious consideration.

The Government of the King, while they consider that this demand is far removed from the proposals they had spontaneously submitted in 1856 to the 3 Guaranteeing Powers, and disproportionate to their wants and their resources, has nevertheless determined to carry it out, by imposing on themselves more than one sacrifice, and confining the expenses of the State to what is strictly

necessary.

I have consequently the honour to announce to you, Sir, that the vote of 900,000 francs, asked of the Chambers for this purpose, having been obtained, the Royal Government has instructed the King's Ministers in London, Paris, and St. Petersburgh, to bring to the knowledge of the Guaranteeing Powers that the above-mentioned sum is at their disposal, and to submit at the same time the necessary remarks relative to certain assertions contained in the Report of the Financial Commission.

I trust that the anxiety shown by the King's Government to satisfy the demand of the Powers will be considered in London as a further proof of their sincerity in fulfilling their Engagements as far as lies in their power.

Accept, &c.

The Hon. W. G. Cornwallis Eliot.

C. A. G. CONDOURIOTIS.

[Neutralised Portions of Savoy.]

No. 319.—FRENCH PROPOSALS for steps to be taken for reconciling the Treaty of 24th March, 1860, with the Vienna Congress Treaty of 9th June, 1815, relative to the Neutralised Portions of Savoy ceded to France by Sardinia. Paris, 20th June, 1860.

(Translation as laid before Parliament.)

The French Minister for Foreign Affairs to the French Ambassador in London.

M. LE COMTE,

Paris, 20th June, 1860. THE Treaty of Turin having received its definitive sanction, and the transfer of the Territories ceded by the King of Sardinia having been effected, the moment is come for the Government of the Emperor to conform to the obligation which it has incurred of coming to an understanding, as well with the Powers who signed the General Act of Vienna as with the Swiss Confederation, on the subject of the contingent neutralisation of a portion of Savoy. The object of this understanding, as I had the honour of observing to you in my communication of the 10th of April last, should, in our opinion, consist in reconciling Article XCII of the Act of Vienna (No. 27) with Article II of the Treaty of Turin (No. 313).

This arrangement it is proposed to carry out by diplomatic stipulation destined to a place in the law of Europe. For the attainment of this object, several courses are open to the Powers. The question may be brought before a Conference. An exchange of Notes might be likewise agreed upon, if it were thought preferable, by which the Government of the Emperor should assume towards the Powers who guaranteed Swiss Neutrality, and towards Switzerland herself, the obligations contracted by Sardinia. Finally, the Powers might also declare in favour of a preliminary negotiation between France and Switzerland, the object of which should be to determine the reciprocal rights and duties resulting from the neutralisation, which would be done by remodelling and completing the Treaty signed at Turin between Sardinia and the Swiss Confederation in 1816. The Government of the Emperor is ready, on its side, to accept the course which * Treaty between France and Sardinia of 24th March, 1860

[Neutralised Portions of Savoy.]

the other Cabinets shall prefer, and which shall seem to them best suited to the circumstances. I confine myself, in case they should decide in favour of a Conference, to reminding them that the majority of them have already recognised the propriety of its assembling at Paris, and that Sardinia and Switzerland have put forward in favour of their participation in its labours considerations the justice of which has been admitted by His Imperial Majesty's Government.

You will read this despatch to Lord John Russell, and give him a copy of it

Earl Cowley.

Receive, &c.,

THOUVENEL.

[For British reply see next page.]

[Neutralised Portions of Savoy,]

No. 320.-BRITISH REPLY to French Proposals for reconciling the Treaty of 24th March, 1860, with the Vienna Congress Treaty of 9th June, 1815, relative to the Neutralised Portions of Savoy, ceded to France by Sardinia. London, 25th June, 1860.

The British Minister for Foreign Affairs to the British Ambassador at Paris.

MY LORD,

Foreign Office, June 25th, 1860.

I TRANSMIT to your Excellency, herewith, a copy of a despatch from the Minister for Foreign Affairs of the Emperor of the French to His Majesty's Ambassador at this Court, which was delivered to me by M. de Persiguy on the 22nd instant.

In this despatch M. Thouvenel declares that the time has arrived for France to come to an understanding with the Powers of Europe, with a view to put Article XCII of the Treaty of Vienna (No. 27) in harmony with Article II of the Treaty of Turin (No. 313). This can be done, according to M. Thouvenel,

in one of 3 ways:

1. By a Conference of the Powers who signed the Treaty of Vienna; or

2. By an exchange of Identic Notes, in which France should undertake, and Europe should acknowledge, that France was bound to Europe and to Switzerland by the same conditions by which Savoy has been hitherto held by Sardinia; or

3. By a preliminary negotiation between France and Switzerland, with a view to determine their reciprocal rights and duties. Of these 3 modes Her Majesty's Government prefer the first. It is that which has been asked by Switzerland, the Power most interested in that question. It is that which is most likely to lead to a frank discussion and a friendly explanation.

Her Majesty's Government accept the Proposals of France that the subject of the Conference* should be the means of reconciling Article XCII of the Treaty of Vienna (No. 27) with Article II of the Treaty of Turin (No. 313); that the place of the Conference should be Paris; and that Switzerland and Sardinia should participate in its deliberations.

Earl Cowley.

I am, &c., *The Conference was not held

J. RUSSELL.