'File 73/7 II (D 22) Status of Koweit [Kuwait] - Baghdad railway, Anglo Turkish negotiations' [‎191v] (388/540)

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then exist. But supposing that the railway is worked on commercial lines, and
that the clanse precluding difEerential tarifis is still operative, it does not appear
from the point of view of our trade, that the fact of our having no share in it will
be a disadvantage. Bnt, of course, it may not be run on commercial hues Pro
tected by their kilometric guarantees the Germans may prefer to let itrus^-t
would always be available for Turkish military purposes- and attract all the
traffic to the northern section. In that case, too, it does not appear that,
tU river were heft free, we should be any worse off commercially than if the line d d
not exist at all. Politically, no doubt, we should be because the Turkish consoli
dation would be effected, and if the railway were built under German auspices,
German influence would be brought very near to the Gulf. But provided that we
can ensure that the line will not be carried beyond Basrah, or if so, only on terms
aareeable to Great Britain, and provided that we have in the meantime consoli
dated our own position in the Gulf, that risk might fairly be taken.
The one serious drawback would be that referred to under head (c) on page li
the danger of the extinction of the British carrying trade between India and
Baghdad Although this disadvantage might to some extent be compensated by
the advantages that might accrue to other branches of trade, it is a very real one
and would have to be faced. (It could only be met, apparently, by a correspond-
ing interworking between steam-ships and railway companies on the Indian side—
a matter which would obviously require very careful consideration.) Moreover,
as has already been pointed out, it is equally attendant upon any arrangement
which does not secure to this country effective control of the Gulf section.
IV The Importance of the tfwer.—The necessity of keeping the river open has
been emphasised throughout these remarks. By that is meant not only ensuring
that it is kept properly dredged and navigable, and that no prohibitive dues are
placed upon shipping (both of which will be secured, as far as the Shatt-el-Arab
is concerned, by the separate convention setting up a Kiverain Commission), but
also by maintaining the right of navigation as far as Baghdad. This is equally
necessary, for the reasons already given, whether we renounce the railway alto
gether or participate in it on terms short of effective control. It is therefore
essential that the questions should at once be closely examined with a view to
ascertaining exactly what rights of navigation British shipping possesses on the
Tigris and Euphrates, and what steps should be taken to put them on a secure
basis.
V. Conclusions.—W&z conclusions seem to be —
(1) that, if the river is open, it is better for us that the railway should never
be built;
(2) that it is therefore not our interest to facilitate it except on terms which
will make it commercially and politically advantageous to our
selves ;
(3) that the only terms on which it will be thus advantageous are that
we secure effective control, i.e., 50 per cent, participation, the cast
ing vote on the board of management, and a free hand as regards
rates ;
(4) that failing that, we should stand out altogether and concentrate on
getting what we want in the Gulf, and especially the joint control
with Turkey of the Shatt-el-Arab and the right of navigation to
Baghdad, which are really the key to the situation.
Mr. Brereton (Government director of Indian railway companies) has read and
entirely concurs in these remarks so far as they touch on the commercial aspects
of the scheme.
VI. The 'practicability of obtaining 50 per cent. —At the interdepartmental
conference of the 30th March, Sir E. Grey had apparently no doubt of this, and he
at once proceeded to prepare the ground with France and Russia.
France —Sir E. Grey to Sir F. Bertie, No. 123 of the 6th April, 1911.—M. Cam-
had told Count Benckendorff that the question as to whether France
c