The Smyrna Corner: An Epic Tale of Money, Love & Politics Set in the Crumbling Ottoman Empire on the Eve of World War I

© 2011 Charles Thoma. All rights reserved.

No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.

First published by AuthorHouse 3/24/2011

ISBN: 978-1-4567-7514-8 (sc)

ISBN: 978-1-4567-7358-8 (e)

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Contents

Foreword

MAP OF THE EASTERN MEDITERRANEAN

CAST OF CHARACTERS

CHAPTER 1

BUDAPEST

CHAPTER 2

CHAPTER 3

CHAPTER 4

CHAPTER 5

CHAPTER 6

CHAPTER 7

CHAPTER 8

CHAPTER 9

CONSTANTINOPLE

CHAPTER 10

CHAPTER 11

CHAPTER 12

CHAPTER 13

CHAPTER 14

CHAPTER 15

CHAPTER 16

CHAPTER 17

CHAPTER 18

CHAPTER 19

CHAPTER 20

CHAPTER 21

CHAPTER 22

CHAPTER 23

CHAPTER 24

CHAPTER 25

SMYRNA

CHAPTER 26

CHAPTER 27

CHAPTER 28

CHAPTER 29

CHAPTER 30

CHAPTER 31

CHAPTER 32

CHAPTER 33

CHAPTER 34

CHAPTER 35

CHAPTER 36

CHAPTER 37

CONSTANTINOPLE REVISITED

CHAPTER 38

CHAPTER 39

CHAPTER 40

CHAPTER 41

CHAPTER 42

THE DOGS OF WAR

CHAPTER 43

CHAPTER 44

CHAPTER 45

CHAPTER 46

CHAPTER 47

CHAPTER 48

CHAPTER 49

CHAPTER 50

CHAPTER 51

CHAPTER 52

CHAPTER 53

CHAOS & CONFUSION

CHAPTER 54

CHAPTER 55

CHAPTER 56

CHAPTER 57

CHAPTER 58

CHAPTER 59

CHAPTER 60

CHAPTER 61

CHAPTER 62

CHAPTER 63

CHAPTER 64

CHAPTER 65

CHAPTER 66

LIGHT

CHAPTER 67

CHAPTER 68

EPILOGUE

APPENDICES

Foreword

This is not a true story. It is a story inspired by a number of events which took place in the Ottoman empire immediately before and during World War I – in itself an immense tale. A number of the characters therein are fictitious, whereas several others are historically accurate in that they existed and held the posts attributed to them in this novel. Some of these historical figures – such as Sultan Mehmet V, Talaat Pasha, Enver Pasha, Djavid Bey, Rahmi Bey, ambassadors Morgenthau, Wangenheim, Pallavicini and Bompard, Arthur de Vere, etc. – I have used to interact with the protagonist and with the other fictional characters in the story. To help the reader keep track of the many players, I have included a Cast of Characters at the beginning of the story.

A number of historical events related mainly to the role played by the Ottoman empire in the run-up to, and at the start of World War I, structure the chronology of the story. Most of the companies and entities mentioned in the book actually existed, though part of the information pertaining to their activities has been slightly amended to suit the purposes of the story.

Students of history might become aware of the fact that I have twisted some facts, such as the precise timing of the construction of the railway lines or the capital structure of some companies. I have of course invented interactions between historical and fictitious characters.

This I have done to craft a plot telling the story of a Balint Morincz who navigates the convulsions which shook Ottoman Turkey on the eve of the First World War. I trust the reader will not hold me on account for playing with history, as I have meant it as a way to bring the disintegrating – yet boiling – Ottoman empire to life and paint the picture of what life could have looked like for someone who was thrust in its storms.

To assist the reader in identifying the places and names of this story, I have provided a map of the Eastern Mediterranean, as well as a timeline of some of the key events which shaped Ottoman / Turkish history in the early parts of the XXth century. Finally, for those who are interested in the economic tools used by the Western Powers to dominate the Ottoman empire at the end of the XIXth and early XXth century, I have provided a high-level description of the Public Debt Administration. Real historians have been much more efficient at describing this unusual financial animal, and their work is of course far superior to mine.

This is just a novel.

MAP OF THE EASTERN MEDITERRANEAN

CAST OF CHARACTERS

Frankfurter Zeitung

24 January 1913

Constantinople is in a state of shock today after last night’s toppling of the Liberal Union government and its replacement by members of the Committee of Union & Progress, political arm of the Young Turk movement. For six months, the virulent opposition between the LU government and the CUP has torn the country apart and led to yesterday’s coup d’état. According to sources close to the situation, two hundred armed members of the Committee of Union & Progress, led by Talaat Pasha and Enver Pasha, stormed the Sublime Porte yesterday and were confronted by Minister of War Nazim Pasha who was shot dead on the spot. The Grand Vizier, Mehmed Kamil Pasha, was held at gunpoint and forced to resign.

The CUP blames the Liberal Union government for the Ottoman empire’s defeat in what has been termed the Balkan Wars which opposed it to its neighbours Serbia, Bulgaria, Montenegro and Greece, and more specifically for agreeing to concede the important city of Adrianople. The proposed surrender of Adrianople and the loss of four fifths of the Ottoman empire’s European territories were regarded throughout the country – and particularly within the CUP – as an immense humiliation and a further step toward the disintegration of the empire.

The change in government was no surprise, as the Young Turks’ desire to regain control of the Sublime Porte was well known to all, particularly in light of the LU government’s critical condition following defeat in the Balkan Wars. However, the violent nature of this change is bound to damage Ottoman credibility in the eyes of the international community.

A new CUP-led government was formed this morning, headed by Mahmud Shevket Pasha. Talaat Pasha and Enver Pasha will assume the responsibilities for the Ministry of the Interior and the Ministry of War, respectively. Djemal Pasha will become Minister of Marine. To avoid political backlash, non-CUP ministers will retain their portfolio. Djavid Bey remains Minister of Finance; Mahmud Pasha, Minister of Public Works; Bustany Effendi, Minister of Commerce & Agriculture; and Oskan Effendi, Minister of Posts & Telegraphs.

Paul Weitz

Correspondent in Constantinople

CHAPTER 1

BUDAPEST

Monday 15 September 1913, Budapest

Balint Morincz resisted the urge to throw the minutes of the Board meeting out the window. ‘How dare his father and uncle impose such a choice on him?’

Balint’s carriage was barely moving. Budapest was teeming with activity, and ülloi út was a crowded avenue at this time of day. At this rate, it would take him an hour to arrive at the Ministry of the Interior… Looking outside the window, he could see the red roofs and spires of Parliament to the north. He had not moved closer to them in the past five minutes.

Balint breathed in long and deep and tried to calm himself. He could feel the blood pulse underneath his bandaged wrist and he massaged it with his left hand.

- Would you mind coming some time next week? We will give you detailed information on our plans, Attila Morincz had said to his son as he left. - It will help you make your decision.

- My decision is already made, Father, I am not going, Balint had answered, all the while knowing that the discussion was far from over.

Why were his father and uncle trying to bring him back into the railroad business? They knew it was not his calling. What did he care if some minority shareholders sold their stake to the competition? And supposing that they did sell, the family would still have full control of Morincz Konglomerátum. So why did it matter?

But Attila Morincz had revealed to his son the dynamics of that morning’s abnormal Board meeting. Balint had then understood why his father had insisted that he should attend.

- Our banks are very worried, and some of the minority shareholders know it, his father had said.

- I know. I was there. Uncle Markus mentioned it during the meeting, answered Balint. - They want to know how we intend to continue the construction and maintenance of the Novi Pazar-Salonica railway while the territory is still occupied by the Serbian army. And they want to know how we plan to grow revenues against the German competition.

- True, Uncle Markus had said, - but what we did not tell the Board was that the banks have begun to raise the possibility of recalling their loans.

- What do you mean?

- That we have been economical with the truth when reporting our discussions with the banks. Even though the Serbian railways only represent one eighth of our revenues, the banks see the stoppage on the Novi Pazar-Salonica line as a major threat to our financial stability. They do not believe that the other business activities will be enough to offset the losses generated by the Novi Pazar-Salonica line.

Balint was surprised to learn that his father and uncle had been forced to hide key information from their own Board.

- We need to protect and rebuild our railway revenues, Uncle Markus continued. - That is why we need to expand into the Ottoman empire and capture the contract to build the Smyrna railway extensions from the Germans!

- What would happen if we did not? Balint had always found that – in negotiations – it paid to envision the impending catastrophe to see how it could be avoided.

- The banks will take us under, answered Uncle Markus. I had a meeting yesterday with Bank Magyarorszag. They have given us six months to repay the stock financing loan, or they will repossess all our stock… The minority shareholders were not far off the mark when they asked if we had any issue with the renewal of our credit lines… It will be impossible to obtain a renewal unless we present the banks with a new plan of business. One which includes sizeable and new railway revenues…

Balint remained silent for a moment. Long ago, he had learned not to worry when Uncle Markus announced dire news. Father and Uncle Markus made a good tandem. If his father was the front line of the army, forever pushing ahead, his uncle represented the logistics and supply lines, forever stretched and unhappy with progress. Uncle Markus had never relinquished the habit of darkening the picture, but today, his uncle’s face belied blacker concerns than Balint had seen in the past…

- What about the Viennese banks, like Raiffeisenbank? asked Balint. - If the Hungarians don’t provide us with financing, maybe the Austrians will?

- Balint, my son, you have been out of the business for some time… answered Attila Morincz. - We have spoken with all the banks, and the Hungarians are the ones who are best disposed towards us. Some banks – including the Austrians – have mentioned repossessing the shares in the Novi Pazar railway which we have barely finished building! If they repossess this line, it will be a devastating blow from which we might not recover.

- Even worse than that, continued Uncle Markus. - We suspect some minority shareholders have had wind of our difficult situation and have been in discussions with Baron von Hirsch to see if they could sell him their shares. Hirsch wrote us a letter last month conveying his willingness to help us. Coming from a competitor, this means that we have been marked as a target! Our own banks would probably feel much more comfortable if a solid German railway company like Hirsch Konzern took a significant stake in Morincz Konglomerátum. Needless to say, that is the last kind of help we want. Unfortunately, none of the minority shareholders is bound by pre-emption rights; each can sell whenever and to whomever he wants. We need to convince them that they should support us because we are best placed to manage the Konglomerátum.

Balint realised he had never seen Father and Uncle Markus so concerned, nor the Morincz Konglomerátum in such dire financial straits…

Sitting in his carriage and somewhat cooled by the passage of a quarter of an hour, Balint reflected that expanding beyond Austria-Hungary and capturing business in the Ottoman empire might not be as impossible as it sounded. Not having been involved with the Morincz Konglomerátum since he had handed all his proxy votes three years ago to his father, he was unfortunately not in a position to suggest a better course of action.

But, as he remembered the rest of the discussion, his blood raced again and the scar on his wrist burned anew. He had never been more unpleasantly surprised in his life.

- Balint, his father had said after the Board meeting, - I want you to spearhead our move into the Ottoman empire. I would like you to be the one to go to Constantinople and Smyrna, bid for the contract to build the Smyrna extensions and help us save the Konglomerátum…

Balint still remembered the feeling of hundreds of questions rushing into his throat in confusion. He had not known where to begin. He thought he could hear the foundations of his life creaking.

- What on earth do you mean – lead our expansion into Ottoman empire? I am fully occupied and employed at the Ministry of the Interior! I cannot take off one or two months to go to Turkey and do God knows what you expect me to do! My work is here!

- Balint, I hate to ask this sacrifice of you, but if there were any other way, we would have found it. We are not asking you to take time off to go on a two-month trip. I am asking you to go to Turkey for at least a year, possibly more…

- A year!

- At least…

For several seconds, Balint had been speechless.

- Father, I am already committed! he finally managed to say. - We are putting the finishing touches on the electoral reform programme which will be examined by the Emperor next week, and presented to Parliament in one month!

- Balint, I know I am asking for much. Your uncle and I know that you are the best and the brightest and in great demand. But we need you and we believe that your duties lie first and foremost with the Konglomerátum. Apart from the fact that thousands of workers rely on us directly, I do not need to remind you that we are not aristocrats. We cannot rely on landed property for revenues… No, our wealth, our livelihood and our ability to grow this firm come only from our profits. These have taken a battering due to the competition, the Balkan war, and the Serbian occupation of the Novi Pazar line. We have one chance to make a strategic move which – if orchestrated correctly – will not only lift the whole Konglomerátum out of the financial quagmire in which it finds itself, but also place us at the forefront of European business. And for this, we need you, Balint.

Balint had felt his world shifting and cracking as he heard his father speak. He could sense that resistance to the mission being thrust upon him would be near impossible. And yet, despite the odds, he did not shirk from the fight.

- Father, I have worked on this electoral reform for two years – I cannot stop now. Not only would the Minister not understand, but who would present it to the Emperor?

Attila Morincz had been too clever to answer his son’s question.

- Balint, I know you are needed elsewhere, but we need you more – you have been educated in the best schools and speak the necessary languages. You know the Konglomerátum from all the years you worked in the subsidiaries. You have been groomed in various chancelleries. We know you can negotiate and obtain results at the highest levels of the Monarchy, which is why we need you to do the same things at the highest levels in the Ottoman empire.

- But, surely there is someone else who can fulfil this role within the team here?

- No one as good as you. Your uncle and I are needed here to manage the business and handle all the discussions with the banks. No one else has the skills to represent the conglomerate at the levels required to operate this breakthrough in Ottoman Turkey. No one else has both the knowledge of the conglomerate and the credibility to make representations on its behalf.

- But I have not been involved in the business for over three years! How do you expect me to know what is best for it?

- Balint, you are the only one – besides your uncle and myself – who sits on the boards of all the subsidiaries and the holding company. You have an exact knowledge of all parts of the business. Its essence has not changed. Who else can we ask to go up against the Germans, the French and the British? Who can negotiate with Ottoman ministers, civil servants and politicians? Only you have what it takes.

Balint strained every nerve and sinew to hide the mixture of anger and frustration which wracked him.

- Father, you know that I do not want to devote my career to the conglomerate. My calling lies with the Minister, who expects me to defend the programme he and I put together. I want to see political stability achieved within the Empire, to help reduce the ethnic tensions pushing Hungarians apart from Croats and Romanians, Czechs apart from Ruthenes, Austrians from Serbs.

- Balint, this may be tough to hear, but you know that if you are not there to defend your reform programme, someone else will. Perhaps not as well as you, but it will be defended and argued. Better yet, it will be passed, I am sure. But no one else can go to Turkey and do the job the Konglomerátum requires. It must be you.

Balint could see that no argument was going to be strong enough to allow his career to stay on its current course. His father and uncle had placed him in front of a higher moral duty, an almost insurmountable obstacle.

- So, if I say no, the Konglomerátum dies, is that it?

- Any number of things can happen, Attila Morincz answered. - If we avoid bankruptcy, creditors will take over, or the banks will force a capital increase to dilute us and remove us as directors. Or the Germans will take over with the help of the minority shareholders and our banks. Over half of our workers will lose their employment, and incidentally we will lose our livelihood and be faced with financial ruin…

Balint did not acknowledge himself beaten, nor did he believe events could be so drastic. Hurriedly remembering conversations with his friends at the Ministry of Foreign Affairs, he had argued with Uncle Markus one hour about all the reasons why doing business in the Ottoman empire was fraught with insurmountable risks.

- I understand the best contracts in the Ottoman empire are the reserved hunting grounds of the French, the British and most importantly the Germans. All three hold board memberships in the Public Debt Administration of the Ottoman empire. Can we really compete in the same league? Against the Germans?

- We believe the Public Debt Administration is an increasingly irrelevant animal, Uncle Markus had answered. - Being a part of it is no longer a necessary condition for doing business in Ottoman Turkey. Quite the contrary. With the leadership going to the Committee of Union & Progress, and with political change reshaping the country, the privileges of European powers are being questioned. New needs for the Ottoman empire surface every day: infrastructure, armaments, real estate, and of course, railways. There are few firms capable of building railways to the scale required by the Ottoman empire. The Hirsch Konzern from Germany and ourselves.

- And what about the British and the French? Balint had retorted.

- The British have more important matters to address in India and Egypt, and the French in North Africa. This leaves us with a partly open field. Though they will not admit it, the Germans do not have the manufacturing capacity to lay down every single track in Anatolia – which means there is room for us.

- So, if I understand you correctly, Balint realised he was beginning to play devil’s advocate, - you expect the British, the French, the Italians and the Germans to let us establish a Morincz franchise in Constantinople and compete head on with them?

- No, Balint. We do not believe the other Europeans will simply allow us to set up shop. But we do not need to grow large in Turkey to have significant revenues; given the size of the Ottoman empire, even just one or two large contracts would do. To refill our coffers, we do not need to be the lead in this play, but only an actor on the stage.

- Perhaps, continued Balint, - but you are suggesting we abandon the existing Novi Pazar railway line in Europe which gives us access to Salonica – the second largest port in the eastern Mediterranean, and the one which provides the shortest route to Egypt and India. Instead, we are supposed to invest in a new railway in Asia Minor – a market of which we have no experience? Why do we not simply wait for the Serbian occupation to be over, and then resume operations on the Salonica line?

- Because we do not know how long the Serbian occupation will last, and because our banks want to know how we will repay them. I did not say it was easy, nor did I say there were no obstacles in this venture. But today, our Salonica line generates no revenues and is as good as useless! We simply need new revenues to become profitable again.

- Do you really believe that any profitable business can be made in a country which has been in political turmoil since Abdulhamid was deposed as Sultan? I understand the Committee of Union & Progress dictates everything to the new Sultan, but that its members are never seen. I hear that the CUP itself takes its cue from Germany, which is unlikely to want to share the profits from its Turkish railways…

- All this is true, answered Uncle Markus, - but what is also true is that for thirty years, the Ottoman empire has been following the same policy as Japan – modernise in order to compete with the West. Since taking power, the CUP has followed the exact same principles as Sultan Abdulhamid. They know that their country needs to be solidified. Our German friends have played a role they hope to continue for the foreseeable future – provide a spinal infrastructure to the Empire.

- You mean the Berlin-to-Baghdad railway line?

- Yes. That is the cake from which we want a slice. Although unpleasant, the turmoil you mention does not really matter from the Ottoman government’s point of view. It does not even matter which political group is in charge. The fact is the Ottomans need railroads. The government needs them to move troops, and the people need them to move merchandise. But first, these railroads need to be built. Hopefully built by us.

- So you believe regardless of the political regime, the market will always be there?

- Yes, Balint. Calling the Ottoman empire the Sick Man of Europe is grossly inaccurate. Despite today’s political upheavals, it is a market of large opportunities. Massive opportunities. All that is required is for someone to go out there and grab them.

- What about the boycott launched by the Ottomans on Austro-Hungarian products?

- That is now over and only concerned foodstuffs. The Ottomans cannot afford to boycott industrial products, particularly railroad equipment.

- What about the Russians? Everyone knows they want to control Constantinople and the Dardanelles to have access from the Black Sea to the Mediterranean. Especially since the Ottomans closed the Straits last year.

- The Russians are still smarting from their defeat at the hand of the Japanese eight years ago. They do not have the means to go up against the Germans.

Balint’s frustration increased as each of his arguments met with a response which cancelled it. More were needed.

- Is not the government a little unstable? Correct me if I’m wrong but did the Young Turks not launch a coup this winter to come back to power? Did they not kill one of the ministers?

- True, true, replied his uncle. - But this was a palace coup, mainly geared to better manage the war with the Ottomans’ Balkan neighbours. It will have no impact on the Ottoman empire’s fundamental need to hoist itself to the level of Europe in railway infrastructure. Regardless of who rules, the Ottomans will still need railroads.

- What about the Italian occupation of the Dodecanese islands? I imagine that this would block access to Smyrna, at the very least by boat.

- It only did so for a short while. But in any case, the Italians would not dream of interfering with Austro-Hungarian shipments.

In spite of all Uncle Markus’s arguments, Balint had not been convinced, and told Father and Uncle Markus as much.

- Father, it is getting late and I am expected at the Ministry. Later this week I will be presenting the reform programme to the Emperor at Schönbrunn with the Minister of the Interior. Forgive me if I allow this to take precedence over the Konglomerátum’s difficulties…

Balint had begun to make his way out of the main building, accompanied by his father and Uncle Markus.

- Balint, Attila Morincz had said halfway through the factory grounds, - this move to Asia Minor is a delicate but an essential one. The reason we have not been active in Asia Minor is because we did not have sufficient financial resources to build the Serbian and the Anatolian lines at the same time. Because of the Balkan war, we interrupted construction on the Salonica line, with both positive and negative implications. The negative impact was that we had to keep our idle employees busy. All of the men you see here – he indicated the workers around them – are part of the railway works and are worried that we will not be able to continue to pay them. This is true if we do not find new revenues. Half of these men are not gainfully occupied. We are still paying their wages because we do not want to lose skilled employees, but we can only do so for a limited period of time…

Balint looked at the queues of blue-clad men doffing their caps with hands blackened by oil, charcoal and soot. The railway workers crowding around the company Ekonomats to collect their soup stared at them and strained an ear to catch what they could of the conversation. Their eyes lifted slightly as their heads dropped to salute the leaders of the Morincz Konglomerátum, which – Balint suddenly remembered – also included himself.

- The positive side, if you can call it that, is that we currently have spare resources to build significant amounts of rail track in Turkey. That is, if we obtain construction contracts… Please come back after your interview at Schönbrunn, Attila Morincz had said. - All we ask is that you know the full details of our predicament, then you can decide…

In the carriage, Balint could feel the vise begin to squeeze his life and it was a powerful one. The blood pounded underneath the scar on his wrist. He massaged it again. What good had it been to surrender all his proxy votes as a Board member if he could be brought back so easily? Oh yes, Father and Uncle Markus were smart… And today they had drawn him into a battle where his chances of winning seemed slim. Very slim.

He drew from his waistcoat pocket the invitation to visit the Emperor at Schönbrunn on Friday and could not repress a bitter laugh. If he did not want this to be the last step in his political career, he would have to fight to the bitter end.

CHAPTER 2

Monday 15 September 1913, Constantinople

The meeting of the European Representatives of the Public Debt Administration seemed strange from the start. Though Hector Bullingdon knew the Representatives well, this was his first time meeting all of them together – the mightiest concentration of western economic power in Turkey. As soon as he took his seat, Hector Bullingdon could sense something was wrong.

For a start – and no one knew quite why – the meeting was being held in the Cercle d’Orient instead of following the usual rotation of venue in the embassy of each country represented on the PDA. Probably pressure from the Sultan, thought Bullingdon. Or more likely from Djavid Bey; the Ottoman Minister of Finance always looked for ways to upset European firms and had called the meeting here…

Hector Bullingdon already felt relieved that his role would be limited to reporting on the reimbursement of the Ottoman debt to its Western creditors. He felt even more relief at the thought that his firm no longer held any of the Ottoman bonds on its books…

Hector had come to Turkey with a view to making a fortune, an immense fortune. And the past seven years he had spent in Constantinople had been more than kind. The tax farming mandates he had managed to obtain had generated wealth beyond his expectations, and beyond the very dreams of his parents, whose house in Chiswick he had repaid within the first year of arriving in Turkey.

Hector examined the invitation carton from the Minister of Finance and looked around the room to see if all the participants had arrived.

"Djavid Bey, Minister of Finance of the Ottoman empire, respectfully requests the presence of the Representatives of the Public Debt Administration:

The immense room was painted a faint pistachio, corners and angles oozing with white mouldings enhanced with golden leaf decorations. In the hush preceding the opening of the meeting, Hector reflected that, if ever there were a test to his success, this was it. Having been appointed advisor to the PDA opened opportunities beyond imagining. The Representatives to the European creditors to the Ottoman empire held a power in Constantinople which almost equalled that of the Sultan. And he now had perfect visibility over all European banks’ business dealings in every Ottoman province. Every loan to be recovered, every security bearing dividend, every title bearing a return, every asset worth selling… Everything.

But Hector was worried about Arthur de Vere… The head of Vickers Armaments in the Ottoman empire and Britain’s Representative looked visibly upset. The continuous shaking of de Vere’s right foot sent vibrations throughout the table and annoyed Hector. By contrast, that arrogant Frenchman, Valençay, France’s representative on the Administration de la Dette Publique (he always insisted on calling it by its official name) looked conspicuously calm. Hector found himself almost wanting to work with Valençay instead of de Vere…

He looked across the table at the German Representative. Does Charles de Testa look tense? As a founding member of the Cercle d’Orient, he should feel at home here… His family has been established in the city for three centuries; he knows everyone worth knowing; and he represents Germany as their chief Dragoman in Constantinople. Charles de Testa’s daily visits to the Sultan in Yildiz Palace are well known to all and give him far more access to those who count in Constantinople than any other Representative of the Public Debt Administration. What could possibly make him tense?

Hector continued his examination of the Boardroom. Marquis von Pallavicini, the Austro-Hungarian ambassador and PDA Representative for the Habsburgs was not even here! When one knew how punctilious Pallavicini was, and more importantly, how worried he was of any change to the status quo – or indeed, of anything which could weaken the Habsburg empire’s slim toehold in Turkey – this was something to wonder at…

In a corner next to the tall entrance doors, the Italian, Dutch and Belgian Representatives were hushedly conversing. Their noiseless conversation stopped when the tall wooden panels of the door opened to allow in Pallavicini. Nodding rapidly to all in greeting, the Austro-Hungarian ambassador sped to his seat next to Charles de Testa. All other standing parties took their positions.

Even within the Public Debt Administration, Hector noted, the battle lines were drawn as between the various countries’ current diplomatic stance. On Britain’s side of the table next to him were the French and the Belgian Representatives. Despite Belgium’s neutrality, Georges Nagelmackers could be described as being on our side, thought Bullingdon. ‘After all, if it isn’t Britain who is underwriting Belgian neutrality and preventing that opera emperor Kaiser Wilhelm from teutonising the country, then by God, I don’t know who is.’ Across the table were Germany and Austria-Hungary. Together at the far end were the Representatives of the more-or-less neutrals – Italy, Holland and the Ottomans. Ah, Djavid Bey seems about to speak:

- Most respected gentlemen, and guests to this country, began the Ottoman Minister of Finance. His commanding tone aimed to impose his will on these Europeans who presumed to control his country. - I thank you for allowing me to address you on such short notice. I will not hide from you that this is at the Sultan’s request. His Highness, Sultan, son of Osman, and Caliph to the Muslims, is deeply concerned that the latest actions of this, your Public Debt Administration is threatening to shake the very foundations of the empire to the ground. Of particular concern to the Sultan – Allah guide him in the path of the righteous – is the fact that your agents throughout the country have – in the most illegal manner! – begun to collect revenues from the vilayet of Erzurum. I am certain that every single person around this table knows that this was specifically to be avoided in order not to give cause to the Armenians to contest the Sultan’s rule. They are a troublesome race as it is…

Arthur de Vere’s foot stopped its rapid jerking, and Bullingdon saw the British representative’s shoulders hunch forward in irritation. ‘…evidently the drawbacks of not using Foreign Office diplomats…’, thought Bullingdon. On Arthur de Vere’s right, Gontrand de Valençay was startled by the sudden movement.

- Forgive me for interrupting, Djavid Bey, but let us not hide behind false pretences. Arthur de Vere’s tone was sharp, like a flag snapping in a strong breeze. - I feel certain that you are well aware of the situation. The reasons we have extended collections to the vilayet of Erzurum is because revenues have fallen below mutually agreed levels. The 1881 Agreement stipulates that, if this were to be the case, the Public Debt Administration would be entitled to extend its collections to the other untouched provinces in order to make up the shortfall. Allow me to invite Mr. Hector Bullingdon here to share with you the findings from a report which his firm, Dent, Palmer & Co, have completed only last week on the status of the debt repayment.

While opening his portfolio, Hector Bullingdon caught the faint smile which turned up one corner of Charles de Testa’s mouth; the German representative’s smile seemed to say ‘oh, what an unfortunate move, England. So much the better for Germany…’. And looking right, the silent frown on Gontrand de Valençay’s brow spoke volumes and tried not to say ‘…what an aggressive brute…’. The French Representative, the Cesare Borgia of Constantinople was clearly not happy with his English ally.

Shaking off the apprehension which began to grip him, Hector handed around a sheet of paper to each of the representatives, and began.

- Gentlemen, as most of you know, Dent, Palmer & Co act as advisors to the Representatives of the Public Debt Administration. We assist you in monitoring the extent to which collections match the 1881 Agreement, and its subsequent amendments. Allow me to present to you the results of the collections both on the principal and the interest at the end the first semester of this year, broken down by category of proceeds: salt revenues, the stamp tax, spirits, the fish tax, the silk tithe, the annual tribute from several provinces – including for the first time revenues from the vilayet of Erzurum – and the revenues from the tobacco tax administered by the Régie Co-ïntéressée des Tabacs Ottomans.

Hector Bullingdon caught a slight nod from Valençay displaying appreciation at the fact