File 3531/1905 Pt 2 ‘Mesopotamia:- Navigation of Tigris + Euphrates; Euphrates + Tigris Steam Navigation Co; Hamidieh Co.’ [‎77r] (153/630)

[This Docnment is the Property o f His Britannic Majesty’s Government.]
ASIATIC TURKEY AND ARABIA.
CONFIDENTIAL.
[October 18.j
1 0 ncyioi - — —-——
Section 5.
[37935] No. 1.
Euphrates and Tigris Steam Navigation Company to Foreign Office.—(Received
October 18.)
3, Salter's Hall Court, Cannon Street, London,
Sir, October 13, 1910.
MY board have had under consideration the present state of affairs in connection
with the navigation of the Euphrates and Tigris. They regard the situation with great
anxiety. A native steamer service on the Euphrates was commenced in May 1909 ;
and between that time and the 6th August. 1910, twenty-seven round trips have been
accomplished and upwards of 4,000 tons of cargo carried. On the Tigris above Bagdad
a permit of navigation has been granted by the Turkish Government to a native firm,
who have commenced a service with a stern-wheel steamer called the “ Dijleh.” Between
Bagdad and Bussorah a similar permit has recently been granted to another native to
run two steamers. We understand that foreigners are not precluded from joining in
these enterprises; but we are informed on the authority of the Minister for Public
Works in Constantinople that care will be taken to secure that we shall not participate
in them.
By my letters of the 3rd June and 20th July, 1910, to which I have not yet had
the honour of a reply, I have already communicated with you on the subject generally
of the present letter. My board are still prepared to send a tug and barge up the
Euphrates with a view to establishing a regular service, and would like to know that
His Majesty’s Government acquiesce in this.
We have received communication of a letter addressed by you to Mr. H. F. B.
Lynch on the 28th July, and of bis reply of the 30th July, on the subject of the recent
abortive negotiations for the fusion of the navigation interests on the rivers of
Mesopotamia. We understand that the matter was discussed on the 20th ultimo with
Lord Hardinge by Colonel Picot, and that it is not denied that pressure was brought to
bear upon this company by the Foreign Office with a view to our obtaining control over
the Turkish service in order to stave off similar action on the part of the German
interests. We were informed that if we held back others would receive the support of
the Foreign Office in taking our place. It was in response to this pressure and at the
express instance of the Foreign Office that negotiations were commenced for the
acquisition of the Turkish fine. It is quite true that the form of the acquisition did not
emanate from the Foreign Office. It emanated from the Turkish Government, who
refused to give us control over their service unless we formed an Ottoman company
into which the British and the Turkish services should be fused. Their proposal was
carefully considered by|His Majesty’s Ambassador at Constantinople, and was referred by
Colonel Picot personally to Sir Charles Hardinge in the spring of 1909. It required
consideration, as it involved the disappearance of the British flag. It was decided on
behalf of His Majesty’s Government to support the proposal, provided that we obtain
control of the combined companies. 1 am to add that the transference to the combined
enterprise of the exclusive rights of the Turkish company has always formed an integral
part of our scheme. Indeed, such transference was the only way in which we, or any
other parties, could effect the object of the Foreign Office, namely, to prevent a
disturbance of the status quo on the river by the advent of German interests.
My board consider it the more necessary to invite your attention to the origin of
the negotiations, inasmuch as it serves to throw light upon the existing situation. If
German interests acquire control of the Turkish Government steamers the concern with
its exclusive rights will pass to them, barring the way to an extension of our operations
to meet the increased competition. If, on the other hand, we were to acquire control
of the concern without the exclusive rights, German interests would certainly claim
permission to form an Ottoman company on the rivers, and the object which the Foreign
Office had in view would be defeated, it seems important that this should be clearly
realised.
There seems to be no present likelihood of the Turkish Government giving us
control of their line with or without a fusion with our own company unless His Maiesty’s
[2930 s—5]