‘Bagdad Ry’ [‎21v] (42/129)

8
in Asia Minor, Russian diplomacy exacted from the Porte in 1900 an under
taking known as the “ Black Sea Basin Agreement ”, under which Russia is
grant* d priority of rights in respect of railway construction throughout the
Asiatic provinces of Turkey which drain the Black Sea.
Germany’s favourable position in Turkey is dependent to a great extent
on the good-will of the reigning Sultan. The Liberal party in Turkey views
with alarm the preponderance of German influence at Constantinople, and,
when opportunity occurs, its energies will no doubt be directed towards the
frustration of German schemes. A further menace to the security of
Germany’s position lies in the jealousy with which the Baghdad Railway
project is viewed by Russia. And, finally, as the construction of the railway
progresses, the kilometric guarantee will bring such a heavy burden on Turkey
that, unless she is permitted to raise additional revenue by increasing the
duties on foreign imports, she may default.
For these reasons Germany is anxious, without sacrificing the control which
she holds over the Baghdad Railway, to enlist as many foreign interests as
possible in support of the undertaking.
With this object in view, negotiations were carried on in Constantinople
throughout 190?, which resulted in the creation of the Imperial Ottoman
Baghdad Railway Company, under a Convention signed at Constantinople on
the 5th March 1903, between the Deutsche Bank and the Turkish Govern
ment.
Under the Convention the route of the line will he from Konia to Eregli,
and thence across the Taurus and Giaour mountains to the valley of the
Euphrates.
After leaving the mountains, the line will he carried in a straight line
across the desert between the Euphrates and Tigris to Mosul.
From Mosul the line will run down the right bank of the Tigris to Bagh
dad, passing through a desolate country covered with a network of swamps.
From Baghdad the line will run due south to the Euphrates, and, after
crossing that river, the route will be along its right bank to Basrah, the chief
port of the Shat-el-Arab. Thence it will eventually be extended to a terminus
on the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , which is yet to be decided on.
Provision is made under the Convention that the whole line to the Persian
Gulf and its branches should be completed within eight years from the date
of the Concession, subject to the punctual fulfilment by the Ottoman Govern
ment of its financial obligations towards the concessionnaire, and to delays
arising from force majeure, which expression includes, in addition to war
between European Powers, any radical change in the financial situation of
Germany, England, or France.
The Turkish Government guarantees a two-fold kilometrie annuity, one of
11,000 fr. for each kilom. built and opened to traffic, and one of 4,500 fr.
towards working expenses.
Under Article 20 of the Statutes of the Imperial Ottoman Baghdad Rail
way, the Council of Administration of the Company is invested with the widest
powers for administering the property and affairs of the Company.
It was in virtue of these powers that the Germans, being in sole control*
were able to negotiate abroad and to make proposals for British and French
co-operation in the undertaking.
To put the control of the railway on an ostensibly international basis, the
Germans agreed that the participations in the capital of the Baghdad Railway
Company should be in the following proportion :—
Per cent.
The Anatolian Railway Company
... 10
„ French group ...
...
... 25
„ German „
... 25
,, English „
... 25
„ other countries—Austria, Switzerland, &c.
• • •
... 15
A conditional assurance was also given to the effect thaMhe Anatolian
line should be brought umUr international control upon a similar basis as
control of the Baghdad Railway.