'Persian Gulf précis. (Parts I and II)' [‎33r] (65/120)

APPENDIX II.
Datod 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. , London, the 7th (received 23rd) April 1911 (Secret).
From—F. A. Hirtzel , Esq., C.B., Secretary, Political Department, 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. ,
London,
To —The Hon'ble Lieutenant-Colonel Sir A. H. McMahon , K .C .I E., C.S.I.,
Secretary to the Government of India in the Foreign Department.
I enclose, for the Viceroy's information, memorandum of the termfl which it is now pro
posed to put to the Turks for a settlement of Baghdad Railway and the Gulf
(c) will perhaps be amended thus: "the number of members on the Board [i.e., of the
new Company] shall be in proportion to the amount of tne British capital and the Chairman
shall in alteruate years be British
The question of a British director on the Baghdad Railway itself will perhaps be taken up
with the Germans.
(r) Kuwaitis abroad. This will probably be held in reserve.
(0 Foreign Office mean to get the Turks out of El Bidaa. We have suggested that the
door should be left open to us to conclude agreements with the Katr people, if necessary.
{u) Probably the words and to consult together if the status quo is threatened by
another Power ^ will be added, or (perhaps) a stronger formula.
(a 1 ) A reference to the Shat-el-Arab will be inserted, but whether it will be possible to
require the Turks to let us restore our buoys which they have replaced is doubtful.
"We have suggested to Foreifrn Office that something should, if possible, be put in that
would prevent a Turkish or German monopoly of navigation between Baghdad and the Gulf
and would make a freight war impossible.
These terms being less unfavourable to us than those mentioned in Secretary of State's
private telegram of 31st March, he did not think it necessary to telegiaph a<rain to the
Viceroy. By the time you get this it may all be ancient history, but the Viceroy will no doubt
telegraph if he wishes to comment. His private telegram of 6th April has gone to Foreign
Office.
Foreign Office to 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. .
Foreign Office,
3rd April 1911,
I send you, by Sir E. Grey's desire, a copy of a memorandum, prepared after our conference
of 30th March, setting forth the conditions on which His Majesty's Government might agree
to the increase of the Turkish customs duties from 11 per cent to 16 per cent for a limited
period.
Sir E. Grey feels that whether the terminus is at Kuwait or at Basrah it would be
inexpedient for His Majesty's Government to agree to the customs increase unless the status
of Kuwait had first been agreed upon by us and the Turks.
If we are sure of maintaining British control at Kuwait, then 'prima, facie it would seem
advantageous that the terminus should be there : and, if such control is to be secured, there
are serious drawbacks to admitting German participation, as it would involve the presence of
German officials at Kuwait and would give Germany a voice in the concerns of the Gulf. The
port would, however, be administered in the interests of the railway and of international trade.
If we cannot secure control at Kuwait, then we must reconsider our attitude towards
British participation in the railway with its terminus at Basrah : but, in any case, as stated
above, we could not assent to the customs increase, or favour such participation, unless the
status of Kuwait had first been regularised.
There is an article by Lovat Fraser in the April number of the " National Review "
contending that it is to our interest on strategic grounds, that the terminus should be at
Basrah and not at Kuwait. Sir E. Grey is inclined to think that if we had real control at
Kuwait we could prevent the establishment of a naval arsenal there if it should ever be
attempted, and that we could, in any case, render su«h an arsenal useless by barring the entrance
to the Gulf (see report by the Inter-Departmental Committee which sat here in the autumn
of 1907): but he proposes to consult the Admiralty and the War Office on the point.
With regard to the collection of customs at Kuwait, Sir E. Grey would be glad to learn
the views of 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. .
Louis M allet.