File 1808/1912 'Bagdad Railway. Navigation of the Tigris & Lynch's Agreement with the Company for the transport of railway material.' [‎8r] (20/514)

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[This Docnment is the Property of His Britannic Majesty s Government.]
[April 26.
Section 5.
Board of Trade to Foreign Office.—(Received April 26.)
(Confidential.) Boar d 0 f Trade, April 25, 1913.
’ I AM directed by the Board of Trade to refer to your letters of the 9th and
17tli April, with their enclosures, relative to the possible absorption of the Euphrates
Stpa.m Navigation Company, in an international transport company
and to offer the following-
representing Turkish, .British, and German interests,
observations thereon for Sir E. Grey’s consideration:
The maintenance of an efficient river service between Basra and Bagdad is, in the
opinion of the Board, of the utmost importance to British trade, and they think that
every effort should be made to prevent the existing services from passing under the
control of interests concerned in the Bagdad Railway, since such control might be used
to put an end to river competition when the southern section of the railway has been
completed. The Board recognise, however, that it would probably be difficult tor the
Euphrates and Tigris Company permanently to refuse to enter mto the suggested
international company, should the scheme be pressed by the Turkish Government;
and further that, should such a company be constituted, it might be commercially
impracticable for competition with it to be maintained by means of the three additional
British steamers which the Turkish Government have been asked to sanction.
In all the circumstances, and in view of the fact that the interests coneernec m
the general navigation of the Tigris and Euphrates are mainly British and I nr is ,
whilst the rights of the Bagdad Railway Company in respect of river navigation are
only of a limited and temporary character, the Board are disposed to think that the
best course to be adopted would be the conclusion with the Turkish Government of an
arrangement for the establishment of an Anglo-Ottoman company for river navigation,
which should endeavour to acquire the rights of present concessionnaires, and (subject
to such existing rights as might not be acquired) should have the exclusive privilege
of navigation upon the Tigris and Euphrates Rivers for a prescribed period, they
have accordingly caused the enclosed draft (A) of an agreement on these lines to be
prepared, and I am to suggest that, should Sir E. Grey concur m the pioposec po icy,
the draft should be communicated to the Turkish Government.
In this connection I am to refer also to your letter of the 12th April, and to state
that they have given careful consideration to the Turkish counter-draft (communicated
by Hakki Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. ) of the proposed railway convention for Asiatic Turkey. * . ,
counter-draft as it stands appears inacceptable, as not sufficiently safeguarding B
interests, the Board are disposed to think that it offers the basis of ^.arrangement,
and I am accordingly to forward to you herewith a revised draft ( 1C1 J .
caused to be prepared, and to suggest that, subject to Sir E. Gre^ s concu
should be communicated to Hakki Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. .
I am, &c.
H. LLEWELLYN SMITH.
Enclosure 1 in No. 1.
Draft Agreement.
(A.)
Article 1.
THE Imperial Ottoman Government agree to grant a concession to an Ottoman
company, to be formed in accordance with^ this convention, tor ie pu p
navigation by means of steamships on the Tigris and Euphrates Rivers.
[2884 cc—-5]
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