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'File 73/7 II (D 22) Status of Koweit [Kuwait] - Baghdad railway, Anglo Turkish negotiations' [‎72r] (149/540)

The record is made up of 1 volume (268 folios). It was created in 24 Oct 1911-26 Dec 1912. It was written in English, French and Arabic. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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[This Docmnent is the Property of His Britannic Majesty's GoYemnient.1
[A-]
ASIATIC TURKEY AxTO ARABIA.
CONFIDENTIAL.
[April 24.]
Section 1.
[16000]
No. 1.
>
A
Joint Minute hy Sir A. Ilirtzel and Mr. Parker on the Turhish Government's
Memorandum communicated on April 15, 1912.
1. Bagdad Railway.
(a.) Division of Share-capital in the Bagdad Bussorah Section.
UTS Majesty's Government originally proposed, in July 1910, that British interests
should be represented by 55 per cent, of the total share-capital.
Turkey replied that she would prefer a distribution of 40 per cent, for herself,
of 20 per cent, to Germany, 20 per cent, to France, and 20 per cent, to England.
To this, in July 1911, His Majesty's Government made a counter-proposal that
the distribution should be 20 per cent, each to Turkey, France, Germany, England,
and Russia; the idea being to secure 60 per cent., or a majority, to the 3 Entente
Powers : England, France, and Russia.
Turkey now professes to fall in with the British view, by distributing the capital
equally between herself, France, Germany, and England, in the proportion of 25 per
cent, each, the Chairmanship and casting vote being reserved to Turkey! No mention
is made of Russia; but, in our informal discussions, the Turks intimated that they
would not willingly admit Russia, and that, if His Majesty's Government persisted,
they would have to introduce another country, say Switzerland, to counterbalance her.
The effect of giving 25 per cent, to each of four Powers, and allotting to Turkey
a casting vote, would be to place control in the hands of the Turco-German group,
in so far as control does actually depend on the percentage of capital held. Control
probably does depend upon the voting rights of the various sections of shareholders
in so far as the appointment of a manager" :1: ' and other high officials and similar
matters are concerned. But though the control to be exercised by the Board of Directors
will not be absolute (since it is proposed to fix by Convention the maximum and minimum
scales of tariff rates and many details regarding transport facilities), and it is therefore
possible to attach too great importance to the distribution of the share-capital as a
means of control, we cannot recommend acceptance of the Turkish proposal, which
we believe would be generally regarded as politically a defeat of His Majesty's
Government, while financially the small amount of British capital that would find
employment would cause great disappointment.
Sir H. Babington-Smith has expressed his belief that Turkey, on the analogy of her
holding in the Bagdad Railway, which is only 10 per cent., would be satisfied with
a share of 10 per cent, or 15 per cent, in the Bagdad-Bussorah section, and he appears
to have discussed the subject with the Turkish Ambassador in London. But we are led
to think that his impression is erroneous; since the Turkish delegates represented to us
that Turkey, as the territorial Power, was already making a great concession in
limiting her share to the same amount as that of the other Powers participating and
Djevad Bey has since forcibly expressed the same view in writing.
Unless some via media can be found between the proposal of His Majesty's
Government for five Powers, and the Turkish proposal for four Powers, a deadlock may
be reached. _ ^ < • • • tt- tvt • >
If, for political reasons, it is desired to retain Russian participation, nis Majesty s
Government might perhaps reply that they cannot agree to the distribution suggested
by Turkey (four Powers at 25 per cent, each) and that they therefore revert to the
proposal made last July of 20 per cent, to each Power (Turkey, France, Germany,
England, and Russia), but that they would be willing to agree to the President of
the Company being a Turk. By this arrangement of a Turkish President, Turkey
We might stipulate that the Manager should be British.
[2435 oa—1]
B

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Content

The volume contains letters, telegrams, and memorandums pertaining to Anglo-Turkish negotiations brought on by the Baghdad Railway and particularly the extension to Basra. Correspondents include: Percy Cox, Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. at Bushire, William Shakespear, Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. at Kuwait, Edward Grey, Secretary of State for Foreign Affairs, Louis Mallet, Assistant Under-secretary of State for Near and Middle Eastern Affairs, Charles Marling, British Ambassador to Persia, Gerard Lowther, British Ambassador to Constantinople, George Buchanan, British Ambassador to Russia, Admiral Edmond Slade, the Board of Trade, the Government of India, the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. , and several private companies, including Trans-Atlantic Trust Company, Anglo-Persian Oil Company, Imperial Ottoman Bank, and Imperial Persian Bank.

The form of the negotiations was a series of memorandums containing proposals and counter-proposals. The issues and subjects discussed are:

  • ownership and control of the line;
  • custom duty increases in the region;
  • navigation of the Shatt al-Arab, including the establishment of a commission to oversee this;
  • transport of railway materials by the Tigris and Euphrates rivers;
  • delimitation of the Turkish-Persian border;
  • status and territorial limit of Kuwait;
  • other Gulf matters, including the statuses of Bahrain and Qatar, the suppression of arms traffic, piracy, and slavery, and the protection of pearl fisheries.

Folios 261-262 are a map showing the proposed territorial limits of Kuwait.

Extent and format
1 volume (268 folios)
Arrangement

The volume is arranged chronologically. At the beginning (ff. 3-4) is a subject index, in no particular order but grouped under several broad headings. The numbers refer to folio numbers from the secondary, earlier sequence.

Physical characteristics

Foliation: The volume is foliated from the front cover to the inside back cover, using circled pencil numbers positioned in the top-right corner of each recto The front of a sheet of paper or leaf, often abbreviated to 'r'. . There are two earlier foliation systems running through parts of the volume. The first uses uncircled pencil numbers in the top-right corner of recto The front of a sheet of paper or leaf, often abbreviated to 'r'. pages, and the top-left corner of verso The back of a sheet of paper or leaf, often abbreviated to 'v'. pages. This foliation system numbers pages if they have content on them, which is the case for all rectos and some versos. This foliation system appears intermittently through most of the volume. The other foliation system uses circled blue pencil numbers in the top-right corner of recto The front of a sheet of paper or leaf, often abbreviated to 'r'. pages, and appears from folios 5 to 42. Numerous printed materials contained in the volume have their own internal pagination systems. The following foliation irregularities occur: 1a, 34a, 51B, 219B, 250B.

Written in
English, French and Arabic in Latin and Arabic script
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'File 73/7 II (D 22) Status of Koweit [Kuwait] - Baghdad railway, Anglo Turkish negotiations' [‎72r] (149/540), British Library: India Office Records and Private Papers, IOR/R/15/1/611, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100023826000.0x000096> [accessed 5 June 2026]

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