In the following Table is shown the proportion of the plus-values due to the Bondholders from these sources: It will be observed that, whilst there was a slight recovery as regards the profit on exchange as compared with 1901, the decline in the assigned Revenues reduced the plus-values almost to their level in 1900. The distribution of plus-values amongst the different Loans by way of increased interest and Sinking Fund has been as follows: : * In the ordinary rotation the second group was entitled to receive an increment of 4 per cent. for amortisation, but the available sum being insufficient, the distribution of the plus-values for the current year (payable in 1904) will again begin at Group II. The percentage of original interest paid or payable on the Coupons of the old External Debt since the institution of Financial Control is shown in the annexed Table: It must be borne in mind that under the Law of Control the ordinary fixed Sinking Fund on the old Gold Loans increases in the present year from to 2 per cent. of the original interest. The following Table shows the Receipts from the K assigned Revenues during the first five months of the present year, as compared with the same period of 1902: From the Table given above on page 142 it will be seen that the gross Receipts from Stamps, Tobacco and Monopolies decreased by 1,139,207 dr. in 1902 as compared with the previous year, but owing to a slight increase in the Piræus Customs Duties, the falling off in the gross Receipts from all the assigned Revenues was reduced to 890,707 dr. Under ordinary circumstances this diminution might appear a serious matter. As is pointed out, however, in the Report of the International Financial Commission which is summarised below, the advance in 1901 in comparison with 1900 was probably exceptional, and the returns during 1902 were well above the average of those during the three preceding years. A slight compensation for the decrease in the total Receipts is to be found in the reappearance, under the head of plus-values, of the item "Benefit from Exchange." The amount is no doubt very small, but it is satisfactory to find that the rates obtaining in 1902 were, on average, more than three points lower than in 1901, and the fluctuations were less violent. The Commission, however, do not appear to regard these circumstances as necessarily portending a permanent improvement in the rate of exchange. For the time being the interest which this subject excited seems to have subsided. It is to be regretted that the Commission are unable to state that any noteworthy steps have been taken towards introducing the various reforms which they have frequently suggested. Smuggling is still rife; extensive frauds are practised in connection with the Tobacco Tax and Stamp Duties; a considerable production of illicit Salt takes place, and much improvement might still be made in the condition of the Piræus Customs house. All these factors naturally exert an unfavourable influence upon the returns from the assigned Revenues. Moreover, the Council fear that the Greek Government fail to recognise the beneficial effect which the institution of the Financial Commission has exercised upon Greek credit abroad. Instead of regarding the Commission as the true friend of Greece, desirous of co-operating with the Government in furthering the real interests of the country, the Ministries of Mr. Zaimis and Mr. Delyannis seem to have assumed an attitude of suspicion towards the Commission, and to have hindered rather than assisted them in the fulfilment of their task. It was hoped that upon the return to power of Mr. Theotokis and Mr. Simopoulos, which took place at the end of last June, the more cordial relations with the Commission, which prevailed when these Ministers were previously in office, would have been restored. The latter Government, however, only remained a few days in power, and a new Ministry has since been formed, with Mr. Ralli as Prime Minister and also ad interim Minister of Finance. Strained relations, if persisted in by the Greek Authorities, will not only prejudice the yield of the assigned Revenues, but also excite serious misgivings abroad, whereby the improvement in Greek credit will be arrested, and the confidence inspired by five years of sound administration in large measure destroyed. Mr. Vincent E. H. Corbett, having been appointed British Commissioner on the Caisse de la Dette Publique of Egypt, has resigned his position of British delegate on the International Financial Commission at Athens. The Council avail themselves of this opportunity of placing on record their acknowledgments of the able and valuable services rendered by Mr. Corbett to the Bondholders, under circumstances which must have called for the exercise of much patience and tact. The Council are greatly indebted to Mr. Corbett for information and explanations on various matters connected with the finances of Greece. Mr. H. P. Harvey, C.B., has been appointed to succeed Mr. Corbett on the International Financial Commission. REPORT OF THE INTERNATIONAL FINANCIAL The following information is extracted from the Report of the International Financial Commission: INTRODUCTORY REMARKS. In considering the results obtained during the year 1902, it would appear that the decrease to be observed in |