File 2764/1904 Pt 4 'Baghdad Railway: Anglo-Turkish negotiations; proposals of Turkish Govt; status of Kowait' [‎168v] (341/674)

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Since the arrangement laid before Djavid Bey
represented a large measure of concession on the
part of His Majesty’s Government, they have
received the suggestions now made by the Ottoman
Government with somejmisgivingj
3 , The Turkish proposals for the final portions
of the railway are that a new company should be
formed, and that the capital should - be divided
between the Ottoman Government, who would
receive 40 per cent, of the whole, and British,,
French, and German groups, who would each
receive 20 per cent. The details of the financial
arrangements are left for subsequent settlement
between the parties interested.
* His Majesty’s Government regret that they are
unable to accept these proposals. If a new com
pany is formed for the construction and working
of the railway south of Bagdad, and if it is to
be constituted upon an international basis, His
Majesty’s Government can only accede to such
an arrangement provided that British interests
are represented in a degree at least equal to that
of any other Power including Turkey, and, in
order to effect this and with a view to emphasising
the international and, commercial character of
the undertaking, they would suggest that Russia
should be admitted to participation and that the
percentage allotted to each country should- be
20 per cent.,
^.Assuming that this distribution is adopted.
His Majesty’s Government consider that a
Convention should be concluded by the Powers
. concerned providing for the exclusion of
differential rates on any railways in the Ottoman
Empire, and for equality of treatment in regard
to transport facilities and cognate matters; for
the (conditions under which] the railway south of
Bagdad^'is to be constructed ; for tbe introduction cuj 4 <^ v U
of approved financial arrangements' tending to
foster the development of traffic ; and for guaran
teeing that the interest in the enterprise of the
several parties concerned shall be of lasting
duration and not subject to termination on the
expiry of the Bagdad Railway concession.
There remains the question of the terminal
port: having regard to the fact that important
commercial interests are already established at
Bussorah, His Majesty’s Government cannot but
feel that substantial advantages would accrue
from the establishment of the terminus at that
point; and they consider that the port should be