‘Bagdad Ry’ [‎28v] (56/129)

4
To Foreign Office,
October 23, 1902.
1903.
To Foreign Office,
February 25,
1903.
Foreign Office,
March 20, 1903.
Memorandum,
April 7, 1903.
40 per cent, to Germany, 30 per cent, to France, 20 per cent, to London, and 10 per i
cent, divided between Austria and Switzerland, Sir Clinton Dawkins replied that such 1
an arrangement was practically out of the question, as the Tariff revision would not he ^
consented to by England under such terms as these.
Mr. Gwinner then made a tentative offer of 10 per cent, to the Anatolian Railway 1
Company, 30 per cent, to London, 30 per cent, to Paris, and 30 per cent, to Berlin, t
Sir Clinton Dawddns considered that this was more reasonable, but remarked that <
the Anatolian Railway Company was a German concern. Mr. Gwinner replied that, 1
even so, it was only fair that that Company should benefit, on account of the many
services it had rendered in the past. 1
In October Sir N. R. O’Conor had an interview with Mr. Gwinner, in the course
of which the latter stated that, until some understanding w^as arrived at about the
increase of the customs duties, nothing could be done as regards seiious construction,
although the line might be prolonged another 200 kilom. over level country if the
Ottoman Government gave a guarantee. This has proved a very accurate forecaste of
what has since taken place.
About this time an attempt was made to fuse the Anatolian Railway Company
with the Oriental Railways, :i: ‘ but failed owing to the action of the Austrian
Government.
On the 16th February, 1903, an Agreement was signed at Berlin by the German
and French groups (Deutsche and Ottoman Banks), concerning their participation in
the Railway and reserving for England an equal share in case she joined in the
project.
On the 24th February Lord Lansdowne gave Baring Brothers, Sir E. Cassel, and
Sir Clinton Dawkins to understand that he considered it undesirable that the Railway
should be carried out without the participation of England, and arranged that the
above-mentioned business men should have charge of British interests as far as
finance was concerned.
On the 5th March a contract was signed by Mr. Gwinner and accepted by the
Public Debt, raising 2,160,000/. at 4 per cent, to provide for the construction of the
Konia-Eregli section.
On the same day the Minister of Finance signed the statutes of the Bagdad
Company.
During the same month arrangements were made that Lord Revelstoke should
represent the British group officially at a meeting fixed to be held in Paris on the
24th March, for the purpose of settling and discussing details.
At this meeting Lord Revelstoke handed to Mr. Gwinner a Memorandum fixing
and embodying the objects for which, in the opinion of the representatives of the
English group present, the assistance of His Majesty’s Government might be obtained.
They stood as follows :—
§ 1. To agree to a reasonable increase in the Turkish Customs Tariff, in connection
with the pending negotiations for a new Commercial Treaty, and to offer no opposition
to the inclusion of a portion of the increased customs revenue among the guarantees
for the Bagdad Company.
§ 2. Should the new route offer substantial advantages over existing routes for the
carriage of mails to India, to make use of it for the purpose on terms to be agreed
upon between His Majesty’s Government and the Company.
§3. To give assistance (not, of course, pecuniary) towards the provision of a
terminus, with proper facilities, at or near Koweit, and co-operate in procuring
convenient Customs arrangements.
Mr. Gwinner suggested that the participation should take the following form :—
25 per cent, to Germany.
25 per cent, to England.
25 per cent, to France.
10 per cent, to the Anatolian Company.
15 per cent, to minor nations.
Sir E. Cassel suggested 26 per cent, to the three first, in order to avoid the out
voting of two of the main participators by a third in combination with the Anatolian
Company and minor nations. Mr. Gwinner objected, and the matter remained in
abeyance. Mr. Gwinner also wished to introduce the word “ Ottoman” before “Customs”
in § No. 3 of the Memorandum handed him by Lord Revelstoke; this, however, was
* The Germans claimed to own 80 per cent, of the shares of the Oriental Railways.