File 2764/1904 Pt 4 'Baghdad Railway: Anglo-Turkish negotiations; proposals of Turkish Govt; status of Kowait' [‎230r] (464/674)

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[This Docnment is the Property of His Britannic Majesty’s Government.]
[April 21.]
Shctitok 1.
Foreign Office to Admiralty.*
Sir, Foreign Office, April 21, 1911.
THE Lords Commissioners of the Admiralty are aware that an agreement has
recently been concluded between the Ottoman Government and the Bagdad Railway
Company whereby the latter renounce, under certain conditions, their right to construct
and work the section which is to connect Bagdad with the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. as well as to
construct the port at Bussorah or on the Gulf in favour of a new Ottoman company to
be formed for these purposes, and that negotiations are at present in progress between
His Majesty’s Government and the Ottoman Government to settle the question of
British participation in the building and control of this section. It is stipulated that
the German share in the new
Power participating.
The Ottoman Government have already communicated to His Majesty’s Govern
ment proposals as to the nature and extent of this participation, and the reply which is
to be returned to them is now in course of preparation.
One of the most important questions for settlement in connection with the subject
is that of the terminus of the line on or near the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
This question involves important considerations of a political, commercial, and
strategic nature, and it is in regard to these last that I am directed by Secretary
Sir E. Grey to request an expression of their Lordships’ opinion.
It is necessary in this connection to decide whether His Majesty’s Government
shall make it one of the conditions of British participation that the terminus of the line
shall be at Koweit (with the port under British control), and refuse to participate unless
this stipulation is accepted, or whether it would be more to the interests of this country
if the terminus were at Bussorah.
As their Lordships are aware, Great Britain occupies a privileged position at
Koweit, holds a lease of the foreshore, and has incurred special obligations towards the
local ruler in virtue of agreements hitherto kept secret.
The advantages of prolonging the line to Koweit are very great, as it affords the
best natural harbour at the Gulf which large vessels can enter, whereas access to
Bussorah is impeded by the bars, and would require a large initial expenditure to keep
it clear.
If British capital participates in the railway these are important considerations
from an economic point of view, whilst the fact of the terminus being in the territory of
a sheikh bound to Great Britain and on land leased by His Majesty’s Government
would, it is thought, largely compensate for the disadvantages inherent in a strategic
line to the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
It might further be stipulated that the harbour should never be fortified if, in the
opinion of the Lords Commissioners, this stipulation would be of advantage. The
attitude of the sheikh cannot altogether be ignored, and it is thought he would
certainly welcome the advent of this line to his territory, and might possibly resent it
if His Majesty’s Government stepped in to prevent it.
On the other hand, it has been argued that certain disadvantages would attend the
creation of a port at Koweit, which would then become the terminus of a great inter
national line ; that it would be difficult for His Majesty’s Government to retain any
effective control over the port, and that the tendency would be towards greater
interference by Turkey, whereas if the line terminated at Bussorah these difficulties
would not arise.
Sir E. Grey would be glad to be favoured with their Lordships’ opinions on the
point at an early date.
* Also to Director of Military Operations, mutatit mutandis.
company shall be equal to that of any other foreign
EASTERN DEPARTMENT.
SECRET SERIES.
[12979]
-- 27APR 1911)1:
No. 1.
[1969 x—J]