A DISPUTE ABOUT OTTOMAN DEBTS BETWEEN NATIONAL BANK OF TURKEY AND TURKISH GOVENRMENT: RESHADIEH SHIP PROBLEM

Within the period of the First World War, the Ottoman Empire working for strengthening its navy against its regional rivals Greece and Russia would enter into an agreement with English building group Armstrong-Vickers and Brown for the construction of Ship Reshadieh on June, 1911. An agreement would be made with an English bank, National Bank of Turkey for the financing of the ship, and treasury bonds would be issued for being paid to the Bank from 1911 to 1916. Confiscation to Reshadieh ship in the summer of 1914 would not only deal big blow to the Ottoman Navy but also it would become the beginning of disputes to continue long time between the building group, the Bank, Turkish Government and English Government. The first dispute on this matter would be the fate of ones taking treasury bonds and the second dispute would be the fate of last instalment retained at National Bank of Turkey without being paid to the building group in accordance with the finance agreement made with the Bank upon the directive of Turkish Government because of the delay in ship delivery. The problem about Money Belongs to Whom? To The Bank, English Government or Turkish Government and about money would be paid in which currency would occupy the parties long time. While the first problem would be solved with Lausanne, it would need to wait 1930s for the second problem’s solution. This study sets an example for understanding how the said debt forming so little item of problems passing from Ottoman to Republic troubled Turkey. The references of the said study aiming at revealing the financial problems within the period following the confiscation to Reshadieh ship compose of English National Archives, Republic Archives of the Prime Ministry, Ottoman Archives documents of the Prime Ministry and the publications about the subject