'File 73/7 III (D 24) Status of Kuwait & Anglo-Turkish negotiations' [‎286v] (584/709)

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84.
I said that I thought that all the concession beyond Baghdad had already
been given up in return for concessions made by Turkey elsewhere, especially
in the neighbourhood of Alexandretta; and that Turkey was now entitled to
build the railway beyond Baghdad as she liked, provided that, if she asked for
any foreign participation, she gave Germany as large a share as any other
country. I did not, therefore, see how Turkey could again have to pay an
indemnity for the giving up of any part of a concession as regards which she
had already purchased her freedom of action, subject to the condition of parti
cipation of German capital which I had stated. I had, however, been unable
to attend to any details of this subject lately, and I would ask the Ambassador
either to discuss them with Sir Louis Mallet or to authorise Herr von
Kiihlmann to discuss them.
The Ambassador also said that the Deutsche Bank hoped that we would
give support on the commission in Paris as to the replacement of securities lost
during the war which were pledged to the Baghdad Railway.
I am, &c.,
E. G rey. .
(Copy sent informally to the Army Department for transmission to the
Division of the Chief of the Staff.)
(Received on the 8th June 1913 with Political Secretary^ letter No. 21, dated the 23rd
May 1913.)
ASIATIC TURKEY AND ARABIA. [7th May.]
CONFIDENTIAL. Section X.
[Amended Copy.]
21191 No. 1.
Minute by Mr. Parker.
I called at the German Embassy to-day and Herr von Kiihlmann
explained to me the views of the German Government in regard to certain
matters touching the Baghdad Railway, Turkish finance and river navigation in
Mesopotamia.
I asked him to allow me to make notes, as the subjects are involved,
and I pointed out that I had come to listen to his remarks and had of course
no proposals to make. The substance of his remarks was as follows;—
1. The Baghdad Railway Company would prefer to build and manage
the section from Baghdad to Basrah themselves rather than abandon that
section to another company. The company did not, under the arrange
ment of 1911, definitely abandon their rights to do this; they at that time
merely made a declaration of their readiness to do so subject to two condi
tions, viz. : that the Baghdad Railway Company's interest in the new
company should be equal to that of any nation other than Turkey, and
that the Baghdad Railway Company should receive compensation for the
renunciation of rights secured to them under the original concession.
2. If His Majesty's Government agree to point (1), then the Soci&e
would be prepared to agree that—
(») The sections from Basrah to the Gulf should be indefinitelv nost-
poned.
(&) If those sections ever should be built, the Soci^te would like to share
in the building of them, but would not ask to share in the
subsequent management of the sections, but there must be
adequate guarantees as regards through traffic.
(c) That Basrah should be the terminus of the line.