In accordance with the Annex of 1 July, as stated above (pp. 291–2), Britain agreed to pay to the Porte annually the present excess of revenue over expenditure, calculated by the average of the last five years. The Turkish Government put that average at £150,000, taking the revenue at £174,000 and the expenditure at £24,000. In the Annex of 1 July, on the other hand, the surplus was estimated at only 22,936 purses (11,468,000 piastres or £103,212). There was no justification for the increase of 50%. The Turkish Government had set down, not the amount actually received, but that which was expected or demanded. Arrears dating twenty-five years back were included. Investigation would show that the surplus would not exceed £100,000. Kellner, the Financial Adviser, estimated, on the basis of the previous five years, that the total revenue for 1878–9 would be £170,000, and the expenditure in the current year £52,000, leaving a surplus of £118,000. The future contribution to the Ottoman Government should therefore not exceed £100,000, and might be less. Biddulph carefully examined the accounts of the Turkish Government and made claims for certain deductions which the Treasury considered reasonable. They assumed, until they should be better informed, that the annual payment was properly fixed by him at 11,121,951 piastres, subject to a temporary reduction of 29,574 piastres on account of the forced loan of 1877. It was finally settled with the Turkish Government in 18822 that the liability of Cyprus should be converted into sterling at 120 piastres to the. £T, involving a payment of £85,000.