File 342/1913 'Mesopotamia: Euphrates and Tigris Steam Navigation Co; mail contract' [‎119r] (244/286)

[29510]
Sir G. Lowther to Sir Edward Grey.—(Received June 28.)
Confidential.)
(No. 552.
Sir, Constantinople, June 2d, 1913.
IN a telegram which I have just received from His Majesty’s consul-general at
Bagdad, some observations are put forward in regard to the question of the Mesopotamian
river service and of Messrs. Lynch’s Company in regard to questions connected with the
Bagdad Railway and the proposal for the establishment of an Anglo-Germano-Turkish
company for the navigation of the Mesopotamian rivers.
Mr. Lorimer refers in particular to Confidential Print, “ Asiatic Turkey and
Arabia,” April 12, Section 7 [16836], and May 7, Section 2 [20977]. He comments
at some length on the statement contained in the seventh paragraph of the letter from
the Euphrates and Tigris Steam Navigation Company as printed in the first of the two
sections above referred to. In his opinion Mr. Parry’s statement of opinion, viz., that
the key of the railroad position, so far as British trade is concerned, is the railroad
from Bagdad to the Persian frontier with the extension from Bagdad to the holy
places, is a mistaken one. The Bagdad-Basra section, he considers, is likely to be the
most important of the whole railway. Arguing on the analogy of the importance of
the Samasta-Kurrachee line to the grain-growing districts of the Punjaub, he suggests
that the grain grown in Mesopotamia, when once the irrigation works are completed,
should form a large and profitable export trade from Basra, since, although the sea
journey from Basra is longer than that of Kurrachee, the actual distance which the
grain has to cover to reach Basra from Mesopotamia is half or a third of that at
present entailed in the journey from the Punjaub to Kurrachee.
Mr. Lorimer is aware, of course, of the possibility of the Mesopotamian grain
being sent to Europe as cheaply via Alexandretta as via Basra, but does not think this
a very probable eventuality, especially if the Suez Canal dues are to be abated.
He is convinced that the river service will not survive the opening of the railway,
and concludes therefore by urging the importance of His Majesty’s Government
securing adequate influence over this Bagdad-Basra section, adding that it is
imperative that this section of the work should be pushed on quickly so as to place
the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. on a footing not inferior to the Mediterranean.
With regard to my despatch No. 379^ of the 3rd ultimo (printed in [20977]),
Mr. Lorimer states that the Eastern Bank is indirectly connected with the National
Bank of Turkey, and that the largest shareholders are the Sassoon connection and
financiers in Brussels and Paris.
He further suggests that in any arrangement which may be come to regarding
river navigation, the carriage of British mails to Bagdad should be secured.
He had also heard confidentially that Mr. Lynch was manifesting some anxiety
regarding the appearance of some rival in the fusion and monopoly schemes.
Mr. Lorimer’s informant was not, however, very definite with regard to the identity of
this person. .
A mutilated telegram in code from Mr. Lynch reached the representative last
week enjoining him not to associate himself with any agitation in Bagdad, but
mentioning some protest that was apparently to be made.
Mr. Lorimer reports that no such agitation exists there at present, and did not
feel in a position to question the representative on the subject.
I have, &e.
GERARD LOWTHER.
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