'File 73/7 I (D 19) Status of Kuwait & Baghdad Railway, and Anglo-Turkish negotiations 1911' [‎226r] (485/631)

But, in fhti meantime, I am to place before yon certain considerations in favoui
of and against British participation in a degree which is not preponderating, the
assumption in Doth contingencies being that satisfactory conditions on the lines
indicated, can be reached in regard to Kuwait, and embodied in an agreement bet
ween His Majesty's Government and Turkey.
It may be urged that, in the absence of a definite agreement, conflicting in-
terests of different nationalities in the Mesopotamian delta are likely to become
more and not less acute as time goes on, that French financial interests are inclin
ed to become restive at the prospect of French participation in the enterprise being
postponed indefinitely ; that in any case the Baghdad Railway will ultimately be -
completed; that the position of the Central Government in Turkey will then be con
solidated and the Turkish power of agression against Kuwait correspondingly in
creased ; that, if the Turkish Government are not now conciliated, the fulfilment'
of British treaty obligations towards the Shaikh of Kuwait, will become more one
rous and difficult, while the protection of the Shaikh's date plantations in Tur
kish territory, whence he derives his principal revenue, will be a source of in
creasing friction and annoyance ; and that British prestige would suffer, to the de
triment of British commercial interests, if Great Britain had no share in the
construction of, the sections of the railway between Baghdad and the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
On the other hand, it may be urged that it is perhaps to the advantage of Bri
tish interests that the advent of the railway towards the Gulf should be postponed
as long as possible; that the progress of the railway has hitherto been slow, and that
much time may elapse before it reaches completion ; that without the additional
safeguard of British co-operation in those ha If-civilised regions the bonds of the raiK
way D company are not likely to find a ready market in the future any more than is
believed to have been the case in the past; that, without British participation, the
railway would probably stop at Basrah, thus eliminating questions of some com
plexity as to jurisdiction and similar matters which might arise if the terminus were
at Kuwait, where it would almost be necessary to institute a British Court with ju
risdiction over foreigners; that, apart altogether from an arrangement to secure Bri
tish participation in the railwav, the differences with Turkey in regard to Kuwait
and the littoral of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. might be adjusted as a condition of British assent
to the customs increase, and to the continuance of the 3 per cent, increase on its
expirv in April 1914 : that, having regard to the general nature of British rights
under the Capitulations, His Majesty> Government could not improbably prevent
the manipulation of tariff rates as against British trade, though this is a technical
matter as to which the advice of the Board of Trade is being requested ; and that
the lame volume of British trade (estimated at nearly one million sterling a year)
which now passes into western Persia by way of Baghdad, might be diverted to a
less circuitous route, and thereby be protected against adverse treatment, if a con
cession were obtained for a railway from Khor Musa and Mohammerah to Khor-
remmabacL
Sir E Grey feels that the question of British participation in the Gulf sections
of the Baghdad Railway without control is one which must be judged on its inents
and apart from the general effect of non -participation on the international situation,
l it were decided that, on the whole, it was not worth the while ot His Majesty s
Government to encourage British capital to participate m the railway without con
trol but that British opposition to the enterprise would be withdrawn when a sa-
tiqfactorv arrangement had been concluded as to questions at issue between Great
SEK t SS ? on the littoral of the ^ ^
then have cause of complaint m regard to the British attitude.
tx ^l,„r hand it ia considered desirable that Great Britain should par
ticipate! it will be necessary to decide tho ^bH ^fu to
isriSKsrs .hi. v «Ma
of His Majesty 's Government should have a seat on the Board.
Sir E, Grey would be glad to have the views of the Secretary of State for Incua
on these points. ^
C162 J?D