"ملف 53/6 (D 2) شؤون الكويت ١٨٩٨-١٨٩٩" [ظ‎‎٢‎٧‎٣] (٥٥٤/٥٤٤)

2
The communication addressed to the Porte by Count Kapnist, intimating
his having ceased to have any further interest in the Tripoli-Koweit Railway
scheme, and declaring M. Kechnitzer to be the real applicant for the Con
cession, has now been handed in. The project is now, therefore, in the hands
of 1V1. Rechnitzer, who is carrying on the negotiations with the Porte on behalf
of the financial Syndicate mentioned in my previous Memorandum on the
subject.
M. Rechnitzer explained that the scheme was first brought forward under
Count Kapnist's name, with a view to prevent Russian opposition, and with
the idea of obtaining powerful influence, both in St. Petersburgh and in Cons
tantinople, for the furtherance of the project.
With this end in view, Count Kapnist had been successful in obtaining
the support of Count Mouravieff and M. de "Witte, on the condition that a
portion of the capital necessary for the construction of the line was to be rais^A
on the Russian market.
The scheme was, however, from the outset very strongly opposed by
Prince Oukhtomsky, and M. Tatischeff, Financial Adviser to the Russian
Embassy in London, considered that Russian support should only be given
to Count Kapnist in the event of the project he was interested in being entirely
placed under Russian control. M. Tatischeff: was even of the opinion that,
under such circumstances, the Russian Government scheme of extending the
Central Asia Railway into Afghanistan might be abandoned.
In the course of subsequent negotiations, MM. de Witte and Romanoff
stipulated that a small share capital of 10,000,000 fr. should be raised, of
which 6,000,000 fr. was to be held in Russia, and that a debenture capital
of 250,000,000 fr. should be obtained in England. These conditions could not
be accepted by the London Syndicate, as they would place the line entirely
under Russian control, and further negotiations being impossible, it was
considered undesirable that Count Kapnist should, under the circumstances,
continue to take an active part in the matter, and that he should give up his
interest for a substantial consideration.
The terms of the draft Convention have been carefully examined at the
Ministry of Public Works, and certain modifications have been agreed to.
The head of the line will be at Alexandretta instead of at Tripoli; the^
line will pass close to Aleppo on to Deir, and, following the right bank of the
Euphrates, will reach Bagdad and Basrah, and will finally bring up at a point
to be determined upon later on on the Persian Gulf, situated between Eao
and Koweit, if not Koweit itself. M. Rechnitzer said there seemed to be some
doubt as to the sovereignty of Turkey over Koweit, a doubt which had been
expressed by Lord Curzon at an interview which M. Rechnitzer had had with
him; it had, in consequence, been considered advisable to leave the terminus
of the line on the Persian Gulf undetermined for the present,
The proposal for the construction of a branch line from Bagdad to
Hannekin has not been entertained by the Porte, as that line will form part of
the Anatolian Railway Company's scheme, which joins Hannekin to Moussoul
by way of Kifri. On the other hand, no objection was made to a branch
being extended from Bagdad to Nedjef Tesherif via Kerbela.
M. Rechnitzer has been informed that His Majesty the Sultan is favour
ably disposed to grant him the Concession he has applied for on condition that
his scheme includes the building of 450 kilom. of railway from Koniah via
Adana to join the proposed line from Alexandretta at a point between that
port and Aleppo, in order to have a through connection with Constantinople
over the Anatolian system, which has Koniah as a terminus.
Osman Bey, Sous-Chef de I'^Btat-Major, has received instructions from
the Palace to examine M. Rechnitzer's proposals, and His Excellency Tahsin
Bey, Eirst Secretary of the Palace, has been instructed to prepare a speqial
report on the subject for Bis Majesty the Sultan's perusal,