New-York tribune., 1905-02-09
GERMAN HOLD ON TURKEY.
France Likely to Refuse Further
Loans Official Statement.

Paris, Feb S-Oficials here say that the COM
plications with Turkey over the proposed loan
and the ordering of guns for the rearmament of
the Turkish artillery are commercial rather than
political, although the authorities taking an
active interest in the affair. owing to the mag
nitude of the French commercial interests in
volved The official version of the situation is
follows:
Turkey, desiring loan. offered to give a
contract for hundred heavy guns as an in
ducement to secure the loan Afterward syn
dicate of German banks undertook to float a
loan and arrange with the Krupps TO furnish
hundred guns 1t recently developed that the
krupps were not likely to be able to deliver the
guns within the time Turkey desired. owing to
the present demand for artillery. Thereupon
Turkey again turned to French banking and
commercial quarters, which were unwilling to
furnish the loan without also furnishing guns.
The matter is pending, with the expecta-
ton that the Porte at q meeting to-day or to-
morrow may decide to reopen the question, with
the view of placing both the loan and guns with
French firms. In the mean time wide range OF
action was given to Ambassador Constans, the
steps he has taken being in the main toward
Fastening a favorable decision.
The officials continue to regard the question
as largely commercial, although they are seek
ing to assist French interests. They state posi-
lively that the question does not involve polit-
ical complications.
Constantinople, Feb. S.-Germany's contract
for the rearmament of the Turkish artillery
Franco-Turkish political relations. The French
Ambassador here, NJ. Constans. expects to leave
Constantnople soon for Paris, in order to con-
suit with the Foreign Minister, NJ Delcasse
In the mean while the Ambassador has Informed
the Turkish government that the French market
is closed to any fresh Turkish loan
Tewik Pacha, the Foreign Minister. tried to
compromise the matter. offering to settle the
Syrian railways question in a manner salts
factory to the French claimants and to pur-
chase military equipment to the amount of
S2.3OOOOO in France. The Ambassador how
ever, demanded the expenditure of S6Oo0OOO.
one-third of the value of the new armament,
with French gun factories. and complete salts
lection of the French demands regarding the
railroads These terms the Ambassador declared
to be final. and not having received a reply on
February g. the Ambassador informed the Turk
ish government that he refused to continue
the negotiations. adding that the French mar
ket was closed TO further Turkish loans.
AS a result Of this notification the Ottoman
Bank withdrew its proposals for the projected
loan, and notified to the Minister of Finance,
Reshad Pacha, that it would not entertain any
request of the government for advances. The
Deutsche Bank then came to the Porte's aid
with an offer to assist the Treasury. The Ger
mans are thus for the moment in complete pos
session of the financial field, and an trade has
already been promulgated ordering the puF-
chase of all the new guns in German factories
It has been decided, however. to rearm only
sixty batteries at present, instead Of 142. as
originally proposed