File 3874/1908 'Railways:-Trans-Persian Railway.' [‎116r] (233/536)

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[This Document is the Property of His Britannic Majesty’s Government,]
IB]
PERSIA . [May 10.]
CONFIDENTIAL. Section 5.
[16398] No. 1.
India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. to Foreign Office.—(Received May 10.)
. India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. , May 9, 1910.
I AM directed to acknowledge the receipt of your letter dated the 19th January,
1910, replying to the letter from this Office of the 23rd December, 1909, as to the policy
regarding railway construction in Persia to be pursued by the British Government.
Lord Morley observes with satisfaction that Sir E. Grey is prepared to ask the
Russian Government not to press the question of the proposed junction of the Russian
and Indian railway systems. But he would ask that in the communication to be
addressed to the Russian Government on the subject His Majesty’s Government should
m no way dissociate themselves from the objections taken by the Government of India
to the proposal.
As legalds the general question involved, Lord Morley, for the reasons stated
in your letter, accepts Sir E. Grey s view that it is impracticable to maintain a
policy of sterilisation. Pie agrees that in the circumstances the proper course to
be pursued, in order to prevent the intrusion of any third Power, will be to obtain
from the Persian Government concessions or agreements of an ear-marking ” nature
for such lines as it is desirable to retain under exclusively British control.
Lord Morley observes that Sir E. Grey is satisfied that such concessions or agree
ments will not commit the British Government to construction at any given time. The
object for which they are obtained is, as. Lord Morley understands, the general one of
avoiding, as far as may be, the intervention of any third Power, and, as regards the
Julfa—Mohammeiah line, to act in accordance with the scheme of policy already agreed
on m principle with the Russian Government.
As regards financial considerations, Lord Morley observes that Sir E. Grey
recognises that is practically impossible to provide funds for construction from Govern
ment sources, and that the money, when required, will presumably have to be raised in
the open market, with or without guarantee. On this point Lord Morley would say
explicitly that he is satisfied that it will not be to the interests of India to participate
financially m the work of railway construction in Persia, whatever its indirect advan
tages to her in the way of trade facilities may be. Lord M.orley has arrived at this
conclusion, not only on the ground of the need in future for rigid economy in India, but
on full consideration of the broad principle of policy wdnch should govern our action
from the Indian point of view in relation to Persian affairs.
As regards the line which it is understood the Russian Government are contem
plating towards Yezd and the British frontier in Baluchistan, Lord Morley, as at
present advised, agrees with the view in your letter that a line from that frontier,
whether at Charbar (or Guattar) or Robat, in the direction of the Russian sphere
should be “ear-marked ’ as the subject of a British concession, but he would suggest
that the purpose in view would be sufficiently met if it stopped at Kerman, and he
would propose that two concessions, viz., Kerman-Robat and Kerman-Charbar (or
Guattar), should be applied for. v
It follows from the objection of the British Government to a junction of the Indian
and Russian systems that they should not, in existing circumstances, be prepared to
undertake the construction of the lines so “ ear-marked.”
I am to enclose copy of telegrams that have passed with the Government of India
on this subject, and to suggest that, in view of the general agreement that has now
been reached, the proposed inter-departmental conference is no longer necessary. If
however, Sir E. Grey wishes it, Lord Morley will of course be happy to send
representatives.
I have, &c.
R. RITCHIE.
[2744 £—5]