3 JUNE 1905, Page 2

The dispute between the Powers and the Porte over the

question of financial reform in Macedonia seems likely to result in a settlement. The Powers insist on the establishment of an international control over the financial administration of the three Macedonian vilayets ; but they are prepared to consider the Turkish counter-proposal that the Custom-duties should be raised from 8 to 11 per cent. ad valorem if the Porte will guarantee the earmarking of the increased receipts to meet the deficit in the three vilayets. The acquiescence of the Germans in this scheme has excited some surprise ; but the Constantinople correspondent of the Times furnishes a plausible explanation. The German Embassy, it is contended, does not think the new Custom receipts will long be needed for the purpose for which they are to be earmarked. "A few years of efficient control will probably turn the present deficit in Macedonia into a surplus, and the 3 per cent. increase will then be free to be devoted to other purposes, among which the Baghdad Railway will have as good a chance as any." It is further pointed out, however, that international control is only one of the conditions which the Powers insist on obtaining before consenting to consider the increase of the Custom-duties. British trade will be most affected by the change; and if an extra burden is to be imposed, the British Government must first be assured that the money will be properly levied and spent.