Page:The European Concert in the Eastern Question.djvu/53

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37
THE CONVENTION OF 7TH MAY, 1832.

the latter to his Chambers[1], to enable their Majesties to guarantee, on the following conditions, a loan to be contracted by the Prince Otho of Bavaria, as King of Greece:—

1. The principal of the loan to be contracted under the guarantee of the three Powers shall not exceed, a total amount of sixty millions of francs.

2. The said loan shall be raised by instalments of twenty millions of francs each.

3. For the present, the first instalment only shall be raised[2], and the three Courts shall each become responsible for the payment of one-third of the annual amount of the interest and sinking fund of the said instalment[3].

4. The second and the third instalments of the said loan may also be raised, according to the necessities of the Greek State, after previous agreement between the three Courts and His Majesty the King of Greece[4].

5. In the event of the second and third instalments of the above-mentioned loan being raised in consequence of such an agreement, the three Courts shall each become responsible for the payment of one-third of the annual amount of the interest and sinking fund of these two instalments, as well as of the first.

6. The Sovereign of Greece and the Greek State shall be bound to appropriate to the payment of the interest and
  1. A law was passed on 14th June, 1833, under which the King gave his guarantee, on 9th July, 1833, and subsequently.
  2. A note of 30th August, 1832, from the representatives of the Powers at London, authorized the immediate realization of the two first instalments, amounting to 40,000,000 fr. This sum was advanced at 5 per cent, with 1 per cent as a sinking fund, by Messrs. Rothschild of Paris under a contract signed by King Otho on 12th January, 1833.
  3. Prot. 55 explains that the responsibility of the Powers is not collective for each bond, but separate for one third of the bonds issued for each instalment of the loan.
  4. In June, 1835, the Greek government pressed for the issue of the third instalment. This Great Britain was prepared to authorize, and the Stat. 6 and 7 Will. IV. c. 94 (19th August, 1836) was passed to remove a doubt as to the authority given to the King by the preceding Statute to guarantee one third of such instalment, unless the other Powers also guaranteed their respective shares of it. France and Russia were reluctant to do so; but eventually concurred in guaranteeing the whole instalment to meet saccessive advances by Messrs. Rothschild, see Prot. Nos. 60, 61, 62, 64, 66, &c.