'File 73/7 II (D 22) Status of Koweit [Kuwait] - Baghdad railway, Anglo Turkish negotiations' [‎208r] (421/540)

{ii) The respective interests of Great Britain and Turkey in tlie region of
the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
{Hi) An increase from 11 per cent, to 15 per cent, ad valorem in the Turkish
customs duties.
f
(i) The Baghdad Railway question.
4. The interest, which Great Britain must take in a railway which is to traverse
a region where British-Indian trade amounts to some 60 per cent, of the total ex
ports and imports, is indeed so obvious as to call for little comment. His Majesty's
Government have on repeated occasions dwelt upon the importance of that trade and
the manner in which it has been steadily consolidated since the foundation,
upwards of two and-a-half centuries ago, of the first English factory An East India Company trading post. at Basrah ;
they have recalled that, up to a recent date, no less than 96 per cent, of the
steam tonnage entered at the port of Basrah was British; and they have con
sistently maintained that a satisfactory settlement of the Baghdad Railway ques
tion was a necessary condition of their assent to an increase in the Turkish
customs duties,
5. The magnitude of these commercial interests also clearly rendered it desir
able that some satisfactory agreement as to British participation in the southern
section of the Baghdad Railway should, if possible, be reached. His Majesty's
Government find, however, that the question of participation on terms acceptable
to them is likely to cause the Ottoman Government some embarrassment, and that
the views held on this point by the two contracting parties are difficult to reconcile.
In these circumstances His Majesty's Government, anxious to prove to the Otto
man Government the sincerity of their desire to reach a comprehensive under
standing without undue delay or controversy, are prepared to withdraw their
request for British participation in the railway from Baghdad to Basrah.
6. It would be impossible to reconcile British public opinion to such a step
unless His Majesty's Government were at the same time able to show that British
interests of whatever character were fully safeguarded. His Majesty's Govern
ment consequently feel bound, apart from the territorial arrangements proposed,
to. lay down the following conditions as essential to that end
ia) An arrangement, as set forth in the accompanying draft convention,
w o for the exclusion of dilteren-
Draft Convention (]). ^ trea t m ent on all railways
in Asiatic Turkey, as well as an undertaking explained in a separate
paper as to the treatment of certain British imports.
(h) The admission of two British representatives to the board of whatever
company may undertake the administration of the railway from
Baghdad to Basrah.
(c) The terminus of the railway to be at Basrah.
{d) No railway to be continued beyond Basrah in the direction of the Persian
Gulf without prior agreement with His Majesty's Government, and
on conditions acceptable to them.
(e) A convention to be signed, on the basis of the accompanying draft,
for the future conservancy of
Draft Convention (2). U the Shatt-el-Arab.
(/) An undertaking that the number of British vessels navigating between
Baghdad and Basrah shall be increased to six.
(ii) The respective interests of Great Britain and Turkey in the region of the Persian
Gulf.
7. His Majesty's Government have learnt with some disappointment of the
attitude of the Imperial Ottoman Government in regard to El Katr and Kuwait;
nevertheless they do not doubt that the Ottoman Government will appreciate the
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