File 3047/1909 'Railways: Asiatic Turkey; railway construction in Asia Minor' [‎147r] (298/368)

[This Document is the Prop erty of His Britannic Majesty’s Government.]
Asiatic turkey and Arabia.
CONFIDENTIAL.
[September 6.]
Sacnoir 2.
[33347] No. 1.
Sir G. Lowther to Sir Edward Grey.—(Received September 6 )
(No. 707.) / * 1
1 Therapia, August 31, 1909.
WITH reference to my despatch No. 686 of the 23rd on the subject of
Mr. Glasgow’s railway scheme, I have the honour to state that I am now informed
that that gentleman does not represent the Standard Oil Company, but is acting on
behalf of I. and S. White and Co., a constructive company in the United States.
I asked the Grand Vizier yesterday how matters stood, and he explained that
Mr. Glasgow’s scheme had been made public, and the Turkish Government were ready
to receive offers on the general lines laid down. This procedure does not seem to have
pleased Mr. Glasgow, who left Constantinople, but it is not known whether he has
done so definitely. I asked whether his scheme was considered to encroach on the
Bagdad Railway system. His Highness was of opinion that it might, but that would
form the subject of a settlement direct between the two parties interested. The pro
posed outlet into the Mediterranean would be Yimurtalik, in the Gulf of Alexandretta.
His Highness added that several were seeking concessions on similar lines—another
American company, a Belgian company, and a company represented by an Armenian
but his Highness seemed somewhat doubtful as to the financial standing of the
different bidders. If all the railway schemes came to nothing, the Government would
be prepared to receive negotiations with the representative of Mr. D’Arcy for the oil
field. In the meantime the latter had taken to England the Glasgow scheme in order
to consult his principals. His Highness implied that as long as such generally
favourable offers of a very comprehensive nature were being made, it was impossible
for the Government to deal with Mr. D’Arcy’s agent in a comparatively small concern,
as, under the new conditions in Turkey, Government is bound to be guided by the
wishes of its Parliament, which is naturally determined to insist on acceptance of the
scheme which appears to be most advantageous to the interests of the country in
general.
I took the opportunity of telling his Highness that there was an impression that
the Government was endeavouring generally in the matter of concessions and orders to
drive too hard a bargain, and that the effect would be to discourage and drive away
bond fide competitors. His Highness declared that this was not so. The Government,
his Highness said, had such innumerable offers in all directions that some severity
must be shown in order to eliminate such as were not really serious competitors.
I have, &c.
GERARD LOWTHER.
[2428 /—2]