"الملف 73/7 V (D 38) وضع الكويت، والمعاهدة الأنجلو-تركية" [ظ‎‎٨] (٢١٦/٢٩)

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The Imperial Government is of opinion that this clause might be left out
altoffether if a group of British shareholders can be formed before the signature
nf this aareement As for the election of the British directors, I am glad to see
Itthe'a^gemei suggested in Prince Lichnowsky's note are satisfactory
to His Majesty's Government.
The German Government considers that clause (c), article 1, in its amended
form should better be left out of the convention and put m the note explicative.
If however His Majesty's Government could not agree to this, but insisted on
retaining this clause in the convention, the Imperial Government would agree
to this provided the second section of clause (c), article 2, which, according to
Prince Lichnowsky's note of the 16th July 1913, was to be put m the note expli
cative, would he restored to the text of the convention.
The prospects laid by Herr von Gwinner befbre Sir H. Babington Smith on
the 14th June 1913, were, to use a financial expression, ground-floor terms as
favourable as could be offered at that period. The Baghdad Kailway Company
will try to obtain from the Turkish Government more favourable terms.
Any concession which they might be able to secure will be offeied as a matter of
course to the British group.
In article 2, clause {d), the words ' c 50 per cent." should be replaced by 4 ' not
less than 20 per cent."
What Prince Lichnowsky said about our willingness to agree to a British
participation of 40 per cent, is entirely maintained , but the Imperial Govern
ment attaches the greatest importance to this particular wording, and I would
strongly recommend its acceptance.
The last paragraph beginning with ' 4 any '' and ending with 4 ' commission •'
could be left out. It is contained in the Anglo-Turkish _ Convention, and will be
confirmed in the agreement between the Baghdad Kailway Company and the
Turkish Government.
In article 3, clause (c), the Imperial Government would like to see the
words '' within the provinces of Mosul and Baghdad '' replaced by '' in Ottoman
territory east of Aleppo," and after " Baghdad Railway Company's lines " inter
polated"or in contradiction with that Company's existing rights."
The first alteration is based on the belief that the wording proposed in the
British counter-diaft would not sufficiently protect the Baghdad Railway in
terests against the possibility of a competing line from some point of the Medi
terranean to Lower Mesopotamia being supported by His Majesty's Government.
It is hoped that the plan of constructing a line from Aleppo to Meskene can
be successfully dealt with during the Franco-German negotiations about railways
in Asia Minor.
Article 4, clause {h), asks for a 20 per cent, participation in the shares of the
River Navigation Company. This is the irreducible minimum we must ask for, and
nothing less, but this participation could , in the opinion of the Imperial Govern
ment, lead to a successful conclusion of this agreement. The German Govern
ment lays great stress on the wording proposed, which establishes some sort of
parallelism with clause (d), article 2, but it is at the same time understood that the
wording does not mean to establish any claim beyond the 20 per cent, share we
ask for. This 20 per cent, share is meant to represent a permanent proportion of
the share capital, so that in case of future changes in the capitalisation this pro
portion shall always be maintained.
In article 4, clause (c), we propose to strike out the words beginning with
" not continue " till "case they shall."
The Baghdad Railway interests are quite willing to let their transport privi
leges on the river lapse after the completion of the main line to Basra, but do not
see their way to agree to a fixed time limit, as proposed in the British counter-
draft. It is hoped, however, that some arrangement, as contemplated in the last
section of clause (c), might be ^ concluded before the signature of this convention,
rendering the proposed time lin it altogether unnecessary.