File 2764/1904 Pt 2 'Baghdad Railway: General negotiations 1908-10.' [‎188r] (384/799)

CONFIDENTIAL.
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Sir Edward Grey to Sn* A. Nicolson (St. Petersburgh).
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Foreign Office, November 26, 1909, 5 15 p.m.
(No. 1343.)
YOUR telegram No. 495.
V, -„ We fi ave i aS y0U f- re alrei ? d J aw ? re > 8 iven 110 re P I J T so far to Gwinner’s proposals, but
a\e confined 0111 action to informing the French and Russian Governments of their
substance. J he proposal made to us is the minimum of what would satisfy British
public opinion and safeguard British interests, and to obtain this we should be willing
to waive our interests m the railway to the north of Bagdad, although some pressure
has been put upon us by the British group to endeavour to obtain the concession of a
blanch from Bagdad to Khamkm. \\ o realise, however, that Russian interests might
be involved m a line terminating at a point on the limit of the Russian sphere of interest
111 ei sia, and although we should be glad to obtain a concession for such a line or to
participate with Russia in its control and construction, we have refrained from giviim-
an) support to such a proposal, and shall not do so without the concurrence of the
Russian Government. Although the German Government are aware that proposals have
been made to us by the Bagdad Railway Company, we propose to allow the negotiations
to be carried on by the English group on a purely commercial basis.
I he matter is one of some urgency, as a decision about the increase of Turkish
customs dues cannot be mdelimtely postponed, and we are as yet in complete ignorance
oi the views ol the Russian Government as to participation. Two years ago Russian
negotiations with Germany fell through owing to the refusal of the latter to recognise
Russian interests m the Russian sphere of influence in Persia. To this condition we
should naturally have no objection, but we could hardly remain indifferent if, in return
lor this recognition, any concessions were made by Russia to Germany in the neutral
zone, buch a possibility would seem to be precluded by article 3 of the Persian
Convention of 1907. We should certainly raise no objection to the opening of neo-otia-
tions between Germany and Russia as to participation in the railway to the north of
Bagdad, but we trust that the Russian Government would keep us informed of their
progress.
Ti e shall expect to receive in due course a reply from the Russian Government to
the communications which you have made to them.
(Repeated to Paris, No. 737).
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