File 3877/1912 Pt 3 ‘Turkey in Asia: oil concessions’ [‎225r] (215/372)

CONFIDENTIAL.
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Sir L. Mallet to Sir Edward Grey.—(Received June 24, 10-30 p.m.)
Constantinople, June 24, 1914.
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delinite answer to-morrow.
^ ^ Minister of Finance said that he thought Government would accept Pecuniary
Claims Convention, but intimated that they would not give way about Ottoman director
on Smyrna-Aidin Railway. Our refusal to accept this had made a most disagreeable
impression. Every other railway in Turkey had some Ottoman directors, including all
the new French lines. English company was alone in refusing without giving any
reasons. Turkish Government were unable to make a special exception in the case of
this company. It was a question of amour-propi'e upon which they could not give
way. I argued at length, but to no avail. I should have thought that this was a
small point which company should be made to yield.
As to oil, he went over all the old ground, but finally said that if we and Germany
would support them in resisting similar demands by France and Russia for Syria and
and eastern vilayets it would facilitate solution.
I said that it would be useless to ask you for such an assurance.
He may possibly prefer some form of words admitting that the case of
Mesopotamia is exceptional, and recognising that the mining law is applicable in
other parts of the Empire.
I discussed the whole question of our relations with Turkey, and incidentally
alluded to large concessions given to other countries in comparison with us. He
denied this, and said that France was giving them more than the Porte had any right
to hope [? group omitted: for]. In addition to the immense loan which had saved
their lives, French capitalists were investing over 25 millions in railways which
Turkey wished to see built. On all these lines there were two or three Ottoman
directors. The French Government had treated with them in a most liberal spirit.
His Majesty’s Government are, on the other hand, asking for feeder lines for riverain
navigation, and hold out no prospect of construction of those [? lines]. If I could give
him a list of [? lines] which English capitalists would put money into in the course of
a year or two, he would give them at once.
He asked for nothing better than British assistance, which was, however, not
forthcoming. His Majesty’s Government merely wished to earmark certain districts in
which no one else was to build railways, and of what good was that to Turkey ?
As for 3 per cent., he affected to make light of threat to withdraw it, -which would
affect the Debt much more than the Porte ; but this indifference is in part assumed, as
I know from other sources that the Government are much concerned. The Grand
^ izier said that the fact of the threat having been made had rendered his position
much more difficult, as he had been working for the conclusion of all the agreements,
but that the Porte could not possibly give way to a threat of this kind.
My German colleague is convinced that we shall certainly obtain what we want
with a little patience. I told him that you must have everything settled before
1st July. He thinks that answer will be favourable to-morrow, but, if not, he will put
in another note threatening to refuse monopolies, should I wish [? group omitted] it.
In view of inclusion of oil question in 3 per cent, ultimatum, of which he is not
aware, I have not thought it necessary to carry out that part of your instructions. As
an immediate solution of pending questions does not seem to be probable, we must
contemplate refusal of 3 per cent, after 1st July. I suppose that merchants should
pay under protest. If so I should like early instructions, as consuls must be instructed
as soon as possible. Crawford is in consternation at the prospect.-
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