'File 73/7 II (D 22) Status of Koweit [Kuwait] - Baghdad railway, Anglo Turkish negotiations' [‎241r] (489/540)

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[TMs Dooameat is the Property of Eis Britaimic Majesty's Govermseat]
ASTATIC TURKEY AND ARABIA,
[August 26.]
CONFIDENTIAL.
S ecttion 3.
W j I
r A y
¥
[36087] No. 1.
Sir G. Buchanan to Sir Edward Grey.—(Beceived August 26.)
(No. 309.)
(Telegraphic.) St. Petershurgh, August 26, 1912.
MINISTER for Foreign Affairs read to me to-day a telegram which he had
received from Russian charge d'affaires in London on the subject of agreement which
Lynch has concluded with German bank. He was, he said, disagreeably surprised to
hear that His Majesty's Government had raised no objections and had treated it as a
matter that was of no political importance.
After the Potsdam conversations he had been taken severely to task for having
agreed not to obstruct construction of Bagdad Railway. He had done so because it
was not in the power of Russian Government to prevent line being built. Agreement
now signed went much farther, as it directly facilitated the construction of the railway
by placing the Lynch steamers at the disposal of the company for the transport of
railway material. Result would be to accelerate construction of the line, and thus
would place Russian Government in a very embarrassing situation. According to
Russo-German agreement, they were bound to commence Khanikin-Tehran line within
two years from the completion of line from Sadijeh or eventually to allow Germans
to construct,it. When they signed this agreement they believed that railway would
not reach Bagdad for five or six years, but now this period might be considerably
shortened. This was a very important side to the question, which, he regretted to say,
had escaped the attention of His Majesty's Government.
Sir Edward Grey to Sir G. Buchanan.
(No. 760.)
(Telegraphic.) Foreign Office, August 27, 1912.
YOUR telegram No. 309 of 26th August: Bagdad Railway.
Under article 9 of their concession the Bagdad Railway Company are entitled to
carry building materials for railway in their own vessels should they deem that course
desirable ; the fact that Messrs. Lynch, as members of the transport syndicate, are to
assist in the purchase and provision of vessels does not mean that the railway will be
completed more expeditiously than if Messrs. Lynch had stood aside If Messrs.
Lynch had not participated the Bagdad Railway Company would merely have bought
vessels of their own, as they had the right to do under their concession. It would have
been quite impossible for His Majesty's Government to have prevented a strictly
commercial transaction of this kind. Indeed, it was so entirely a private commercial
transaction and matter of routine that it was not referred to me personally till Russian
charge d'affaires spoke of it the other day. In the absence of any agreement with
Germany or Turkey we are as little desirous as anybody to facilitate construction of
Bagdad Railway, but this transaction was outside of our control and has no real effect
on date at which railway will be completed.
(Repeated to Constantinople, No. 515.)
o
[36477]
No. 1.
Sir G. Buchanan to Sir Edward Grey.—-{Received August 29.)
(No. 316.)
(Telegraphic.) St. Petersburgh, August 29, 1912.
YOUR telegram No. 760 of 27th August: Bagdad Railway.
I have explained the matter to the Minister for Foreign Affairs.
While admitting that it would have been very difficult for His Majesty's Govern
ment to have acted otherwise, his Excellency maintained that effect of the agreement
would be to accelerate construction of railway.