'Mesopotamia' [‎57v] (114/152)

104
ECONOMIC CONDITIONS ^0.92
a vested interest in the trade of the Gulf, and it was
upon that basis that they began to take an interest
in the buoying of the Shatt el-Arab and the navigation
of the Euphrates.
By the autumn of 1913, in spite of the tact that
the respective tonnages of British (or Indian) and
German vessels entering and clearing at Basra showed
a preponderance in favour of British lines ot not less
than 5 to 1, it was clear that the German line was
getting stronger. In spite ot organised etfort to
combat the increase of the German trade in Belgian
sugar, more than 50 per cent, of the imports ot sugar
arrived in German bottoms. The German line had
secured a portion of the import of Manchester goods
and was constantly shipping produce from the Gulf
to London and Red Sea ports. Baghdad Jews were
beginning to do business in Hamburg and Germany,
and it was stated that the German line had bought
up some of the vessels of the Strick line, one ot the
most important in the trade of the Gulf.
By the end of 1913 the position had become so serious
to British shipping interests that the shipping lines
concerned came to an agreement with the Hamburg-
Amerika line in defence of their own interests. The
terms included {a) an agreement of freight rates from
Europe to the Gulf, and (b) an agreement that German
lines should not load at English ports. Information
goes to show that these terms were practically dictated
to the British lines as to beaten enemies. 1 his was
admitted by Lord Inchcape in a letter to the India
Office dated December 29, 1913, in which he wrote : " If
the British lines had not come to terms with the Ham-
burg-Amerika line it would have been impossible for
them to maintain a position in the trade/'
It may well be asked by what methods a single Ger
man line had been able in barely seven years to bring-
about this result. The usual reply of " German sub
sidies" is insufficient, for the French Government has
for many years heavily subsidised the Messageries
Maritimes line to Australia, and yet British lines have