File 4345/1912 'Trans-Persian Railway' [‎111v] (227/330)

2
/'* The Russian promoters, being dissatisfied with the response met with in political
and financial quarters in England, applied to French financial circles for the furtherance
of their scheme. In consequence of the representations of the Ifussian Ambassador in
Paris, M. Isvolsky, who urged that serious attention should be given to the project, the
French financiers undertook to examine the affair, and in November 1911 solicited the
co-operation of British financial interests in an international company to be composed of^
British, Russian, and French elements.
/2 ( Before financial support was given in London the Foreign Office was consulted, and
the attitude adopted in official quarters led to the belief that British financial
co-operation would not only be politic, but would also be commercially justifiable, it
being felt that the situations arising from the abstention of British co-operation from
the initial stages of such international enterprises as the Suez Canal and Bagdad
Railway might again present themselves in the case of a Trans-Persian Railway
being constructed without the introduction of a British element. After prolonged
negotiations and consultation with His Majesty’s Government, the Societe inter-
nationale d’Etudes du Chemin de Fer transpersan was formed and finally constituted
in June 1912.
Since that date periodical meetings have been held in Paris for carrying into effect
the objects which the “ socidte ” had in view. The Foreign Office have been duly notified
of the various stages of proceedings, and it is with the object of receiving guidance and
support from the Secretary of State for Foreign Affairs that these communications have
been made.
The British group appreciate the attitude of His Majesty’s Government in confining
themselves to their readiness to consider the report of the Societe d’Etudes, when
completed, and also to support a demand for a trunk line concession qualified by reser
vations previously mentioned. At the same time it will be recognised that, inasmuch
as the terms of a concession to be obtained claim consideration before any report can be
drawn up and submitted by the “ society,” it is essential that the full scope of the
concession to be asked for should now be clearly defined.
/f.It will be seen, therefore, that circumstances of the present situation oblige the
British group to suggest that the Foreign Office should now depart somewhat from the
attitude they have hitherto assumed, and that they should give definite indications of
the views of His Majesty’s Government collectively on some points of importance which
demand settlement at the present stage.
/tOt will be recognised by Sir Edward Grey that once a concession is obtained in
general terms from the Persian Govenment, the Russian and French interests in the
Societe d’Etudes are less likely to prove amenable to British wishes in matters of detail
than they would be at present before the concession is obtained. The British group
would therefore urge that, in departing from their attitude of awaiting the “ societe’s ”
report before making any definite announcements, His Majesty’s Government would
facilitate an amicable adjustment of terms for a working agreement with Russian and
French interests by stating definitely at this juncture the exact nature of the conditions
they would wish to see imposed in order to safeguard British and British Indian
interests as far as possible in the future.
Y,The British group have naturally no wish to act in any sense contrary to the
dictates of the British Government policy, but in the absence of direct indications of
the considered views and policy of His Majesty’s Government as a whole in regard to
many details essential to the prosecution of their ideas, the Societe d’Etudes fee Ibound
to be guided in their decisions as to future procedure by the nature of the indications
afforded on the following points :—
(a.) Before proceeding further it would seem essential to learn whether His
Majesty’s Government view with favour or disfavour the prospect of direct railway
communication between India and Europe via Russia.
(b.) It would appear desirable to know whether His Majesty’s Government desire
British financial interests to continue co-operation in the Societe d’Etudes in spite of
such co-operation leading primarily to facilitating railway construction in Northern
Persian only.
(c.) In the event of His Majesty’s Government being already committed to support
other applicants for railway concessions in the British and neutral spheres, it would
seem essential to learn the scope of such concessions.
(d.) In view af the possible advancement of conflicting projects for railway service
in the British and neutral spheres, the British group would be glad to learn whether
His Majesty’s Government have any suggestions as to a solution of the situation which
may arise from rival claims in this portion of Persian territory.