Papers of the Interdepartmental Conference on Middle Eastern Affairs [‎112v] (224/290)

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did not wish to take over the railways il this would lead to a financial smash, hut they
were prepared to do so if the Treasury would meet reasonable requirements.
Mr. Gdrbett considered that, whatever might be decided, it was necessary to keep
the railway in a good state of repair. Unless this were done the railways wou <
deteriorate rapidly. # ... v
He considered that it might be in the interests of the Administration to run t ie
railway, even if it had to be subsidised to meet river competition.
With regard to the suggestion that a private company should take over the
railway, he considered that a question of policy was involved thereby. He did not
know how much money had been received from Mesopotamian funds by the lieasury,
but considered, however, that it would be satisfactory it they could receive Ireasuiy
authority that the Mesopotamian surplus of 645,000Z. would be available for that
country. No estimates had yet been received for the year 1921, but he understood
that the Treasury had already received the surplus M half a million which accrued m
1915-1918. _ . . , r
With regard to the suggestion that the proposed provision of new rolling-stock
was unnecessarily lavish, he pointed out that the matter was subject not only to the
local inspection, but' to War Office and India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. supervision. An increase in
rolling-stock, moreover, would enormously increase the receipts of the railway.
tn reply to a question from the Chairman, he stated that he considered it possible
that there might be a rate war between the river and railway transportation systems.
In view of the uncertainty which seemed to exist as to financial figures and estimates,
he suggested that a sub-committee of the present committee, on which the War Office,
the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. and the 'treasury should be represented, should meet to go into the
financial aspects of the question. This suggestion was agreed to, and it was decided
that the sub-committee should meet at the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. on Monday, the 1st proximo,
at 11’30 a.m.
Mr. Millar said that the Treasury lacked sufficient financial information on these
questions on which to base an opinion.
The Chairman asked what the Treasury alternative was, if, having received the
necessary figures, they found that considerable expenditure was essential ? Did they
consider it possible to let the railway become derelict ? This was surely out of the
question.
Mr. Millar said that he could not depart from his attitude of reserve. He added
that the Treasury agreed that the transfer might be made, but they were unwilling to
commit themselves as to provision of funds. The Treasury was desirous of knowing
what Mesopotamia could do financially from its own resources, and whether a further
balance of half-a-million was again to be expected. From the insufficient information in
their possession they were unwilling to commit themselves in advance, but their general
attitude was that capital expenditure should be kept as low as possible. The corre
spondence he had seen on the subject of rivercraft suggested the probability of railways
being unable to compete economically with the river transportation. If, however, the
railway would pay its own way he did not see why it should not be handed over to a
company, which solution from the Treasury point of view would probably be preferable
to transfer to the civil authorities.
In reply to a question from Mr. Garbett, he could not state how much money had
been received by the Treasury from Mesopotamia, but all capital expenditure other
than for purely military reasons must be put against it.
With regard to the surplus of 645,0001. which had been referred to, the Treasury
would require to have the proposal definitely placed before them. If the railway could
be self-supporting from its own revenues the Treasury would probably have no objection
to the proposed transfer.
General May stated that the military authorities, from their point of view, did not
desire to retain the railways.
With regard to the proposed new passenger-carriage stock, the new waggons were
not so essential from the military point of view as they were from the commercial point
of view. If, however, it were decided to sell the railways to a company it was useless
to expect to obtain a good price unless the railway were kept in a good condition.
Colonel Redman observed that the railway, according to the estimates received,
appeared to be in a good financial position. If it were decided to transfer the line to a
private company he considered that at any rate sufficient expenditure should be incurred
to keep the line in order and to ensure economical working.