'Note on Persian Railways' [‎3v] (4/8)

despatch was communicated to the Shah, and in the following year (1903),
on the 5th May, Lord Lansdowne declared in the House of Lords that “ we
should regard the establishment of a naval base, or of a fortilied port, in
the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. by any other Power as a very grave menace to British
interests, and we should certainly resist it with all the means at our
“ disposal” (19).
At a later date it became definitely known that the Russian Railway
* The beginning of Russian “ financial
tutelage.” /See Memorandum on “Persian
Government Loans."
Agreement of 1890 had, as one of the
conditions of a large loan to Persian-
been renewed, on its expiring in 1900,
for a further period of 10 years (20).
Third Period (1907 to present time).
12. The Anglo-Russian Convention of 1907 and its influence on British
Railway Policy.—With the signature on the 31st August 1907 of the Anglo-
Russian ( onvention the discussions as to railways in Persia entered upon
a new phase, and a policy of cooperation was substituted for one of rivalry
between Great Britain and Russia.
As regards the effect of the instrument itself, the Foreign Office pointed out
that it would prevent His Majesty’s Government constructing a line as far as
i ehran, but that they might construct a line in Southern Persia, if the
Russian Government were to construct one in the north. The Russian
'Government had undertaken by the new r arrangement “not to oppose con-
“ cessions supported by His Majesty’s Government in the British sphere, nor,
without previous discussion with His Majesty’s Government, in the neutral
“ zone either ” (21).
13. The Mohammerah-Julfa Railway and communications with the Russian
Government.—On the occasion of the King’s visit to Reval in 1908,
M. Isvolsky was informed by Sir C. (now Lord) Hardinge that His Majesty’s
Government would approve of a railway passing through Persia and ending
at Mohammerah on the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (23). In an Aide-memoire of the 15th
August 1908 the Russian Government agreed in principle to this line, and,
unable themselves to furnish the capital, were ready to settle the financial
side of the question with Great Britain. They proposed to join the line with
I ehran and, further, to link Tehran with Resht and Enzeli, two places upon
the Caspian. The necessity of constructing a line between Askhabad and
Meshed (i.e., a line in Khorasan) had also, they observed, to be considered.
In order to preserve Russian commercial interests in the north, it would
probably be necessary to examine the question of freight rates on the
Mohammerah line (24).
In a memorandum dated the 9th October 1908, the British Government
replied that what they had contemplated was not the actual construction of
railways in Persia, but rather the “earmarking’ of concessions. Before
railways were constructed, the finances of Persia should be set in order, and
His Majesty’s Government themselves -would not be justified in guaranteeing
a minimum rate of interest for Persian railways. Besides the southern
section of a J ulfa-Mohammerah line, the concessions most closely concerning
His Majesty’s Government were for lines from Bunder Abbas to Kerman,
and Bunder Abbas via bhiraz to Ailwaz, with the option of a port at Khor
Musa. It vvould be w r ell-nigh impossible for Great Britain to assent to
anything like a discrimination of tariff rates in favour of Russian goods on
the Mohammerah railway. A hope was expressed that the Askhabad-Afeshed
project might remain in abeyance (26).
14. Russian Suggestion for a Trans-Persian Railway.—For some time after
the British reply to the Russian Aide-memoire, matters remained as they
were, but on the 17th December 1909 the Foreign Office forwarded copy of
a despatch from Sir A. Nicolson reporting that AI. Isvolsky had mentioned,
in connection with the visit, to London of the Duma deputies, their desire
that through railway communication with India should be established. This