"الملف 73/7 I (D 19) وضع الكويت، سكة حديد بغداد، والمفاوضات الأنجلو تركية في ١٩١١" [و‎‎٢‎٧‎٥] (٦٣١/٥٨٣)

i L ocment is the Property of His Britannic Majesty's GovemiL „.l
EASTERN DEPARTMENT. [July 2 gj
SECRET SERIES. Section l
[28300] No. 1.
Memorandum communicated to the Tu 29, 1911.
(Confidential.)
HTS Majesty's Government have not failed to give their careful attentipn to the
important proposals contained in the memorandum of the 1st March last from the
01 torn an Go v eminent.
These proposals, though they affect interests so closely interwoven that they
cannot ^ be settled independently the one of the other, have, for the purpose of
convenience, been set forth under three distinct headings :—
(i.) The Bagdad Railway question.
(ii. ) The respective interests of Great Britain and Turkey in the region of the
Persian Gulf.
(iii.) An increase from 11 per cent, to 15 per cent, ad valorem in the Turkish
customs duties.
(i.) The Bagdad Railway Question.
On various occasions His Majesty's Government have indicated the conditions
under which they would favour the participation of British capital in this enterprise ;
and, while it is not now proposed to recapitulate the earlier stages of this question,
it may be recalled that in July 1910, as a result of prolonged discussions with the
Ottoman Minister of Finance who was then in London, it was intimated that an
arrangement securing to British interests a representation of 55 per cent, of the
whole in regard to the Gulf sections of the line might be regarded as a satisfactory
solution,—and, having regard to the great preponderance of certain interests in other
sections of the line, such a proportion cannot well be looked upon as excessive,
especially if the great extent of British trade in those regions and the vast tonnage
of British shipping are borne in mind.
Since the arrangement laid before Djavid Bey represented a large measure
of concession on the part of His Majesty's Government, they jiaye received the
suggestions now made by the Ottoman (rovernmeut with some surprise.
^ The Turkish proposals for the final portions of the railway are that a new
company should be formed, and that the capital should be divided between the
Ottoman Government, who would receive 40 per cent, of the whole, and British,
French, and German groups, who would each receive 20 per cent. 1 he details _ot
the financial arrangements are left for subsequent settlement between the parties
j i i tue|ted. est^s Governme]it regret tliat t i iey are unable to accept these proposals.
If a new company is formed for the construction and working of the railway south
of Bagdad, and if it is to be constituted upon an interaatioiial
Government can only accede to such an arrangement provided that British interest
are represented in a degree at least equal to that of any other lower including
Turkey and in order to effect this and with a view to emphasising the mternationa
and commercial character of the undertaking, they would suggest that shou t
be admitted to participation and that the percentage allotted to each countij suou
1,6 " Assuming that this distribution is adopted, His Majesty's Government consider
that ^Convention should be concluded by the ^
exclusion of differential rates on any railways m Asiatic lurkcy, a
of treatment in regard to transport facilities and cognate niatteis , ^ te( j.
STlSI duraliou arf mt » m**t» - «•
expiry of the Bagdad Railway concession.
' [2123 /f—1]