'File 53/33 II (D 15) Koweit Baghdad Railway' [‎16v] (45/210)

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Inclosure 3 in No 1.
Consul McDouall to Consul Crow.
Mohammerah,
January 10, 1907.
My Dear Ceow,
Your letter of the Uh January. Bagdad Railway could hardly compete
with British ships, but if completed without British participation tendency
would be to lower British prestige in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. and the Arabs on the
ground crossed will favour the Germans with the view of getting protection.
Yours sincerely,
W. McDOUALL.
Inclosure 4 in No. 1
Major Ramsay to Mr. G. Barclay.
R.I.M.S. " Comet,"
January 9, 1907.
(Confidential.)
Sir,
I have the honour to acknowledge the receipt of your Secret telegram,
dated the 3rd (4th) January, asking for my observations as to the effect that
the Bagdad Railway is likely to have on British interest if completed without
British participation.
2. As regards the Political interests of the British nation, I can add
nothing to the remarks contained in the letter which I addressed to His
Excellency the Ambassador a few months ago.
3. As regards the commercial interests of great Britain, I think that these
are likely to be forwarded by a railway from the Mediterranean to the Persian
Gulf, because such a railway must tend to develop the country and to reduce
freights from the port on the Gulf to Bagdad, and to Khanikin on the Persian
frontier.
4. Putting aside all political considerations, it appears to me desirable
that we should take part in the railway for the following reasons : —
(1) If we do not take part, it is not likely that any of the plant required
for the construction and up-keep of the Railway will be bought
in England.
(2) It is not likely that any Englishman will be employed.
(3) The office of every foreign official will be a centre from which
the interests of foreign trade can, and probably will, be pushed.
This argument applies not only to the export and import trade,
but especially to the advantages that will accure to the foreign
ers in obtaining opportunities of controlling local industries.
For example, British machinery would find it "very difficult to
compete with German machinery if German mechanics were the
experts who could most conveniently be consulted. I cannot
help thinking that Mesopotamia will offer a great opening for
agricultural machinery as the country develops.
(4) Without British participation it would be difficult, if not impossible,
to guard against preference being given to trade from the north.
Plausible excuses could no doubt be found by an astute and
hostile Railway Manager for charging higher rates on the
Southern sections of the line; and even if the rates per mile were
uniform throughout the length of the line, the southern trade
could be hampered by heavy landing and port charges by want
of storing conveniences, and by a rule insisting on all documents
being in German and Turkish.