'XXII/10 Status of Kuwait & Negotiations with Turkey.' [‎42v] (84/446)

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and future effects upon Anglo-Turkish relations in general. His Majesty’s Govern
ment therefore desire to lay before the Ottoman Government the following proposals and
considerations :—
3. For convenience of reference the several proposals under consideration may be
dealt with under three distinct headings :—
(i.) The Bagdad Railway question.
(ii.) The respective interests of Great Britain and Turkey in the region of the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
(iii.) An increase in the Turkish customs duties.
(i.) The Bagdad Railway Question.
4. The interest which Great Britain must take in a railway which is to traverse a
region where British-Indian trade amounts to some 60 per cent, of the total exports and
imports is indeed so obvious as to call for little comment. His Majesty’s Government
have on repeated occasions dwelt upon the importance of that trade and the manner in
which it has been steadily consolidated since the foundation, upwards of two and a-half
centuries ago, of the first English factory An East India Company trading post. at Bussorah; they have recalled that ^
no less than 96 per cent, of the steam tonnage entered at the port of Bussorah was
British ; and they have consistently maintained that a satisfactory settlement of the
Bagdad Railway question was a necessary condition of their assent to an increase in
the Turkish customs duties.
5. The magnitude of Great Britain’s manifold interests clearly renders it desirable
that some satisfactory agreement as to British participation in the southern section of
the Bagdad Railway should, if possible, be reached. His Majesty’s Government find,
however, that the question of participation on terms acceptable to them is likely to
cause the Ottoman Government some embarrassment, and that the views held on
this point by the two contracting parties are difficult to reconcile. In these circum
stances His Majesty’s Government, anxious to prove to the Ottoman Government the
sincerity of their desire to reach a comprehensive understanding without delay or
controversy, are prepared to withdraw their request for British participation in the
railway from Bagdad to Bussorah, if a satisfactory agreement is arrived at on the other
points enumerated in this memorandum.
6. It would be impossible to reconcile British public opinion to such a step unless
His Majesty’s Government were at the same time able to show that British interests of
whatever character were fully safeguarded. His Majesty’s Government consequently
feel bound, apart from the territorial arrangements proposed, to lay down the following
conditions as essential to that end :—
Draft Con
vention
(Annex 2).
Draft Con
vention
(Annex S).
(a.) An arrangement, as set forth in the accompanying draft convention, for the
exclusion of differential treatment on all railways in Asiatic Turkey.
(b.) The admission of two British representatives, approved by His Majesty’s
Government, to the board of whatever company may undertake the construction or
working of the railway from Bagdad to Bussorah.
(c.) The terminus of the railway to be at Bussorah.
(d.) No railway to be continued beyond Bussorah in the direction of the Persian
Gulf without prior agreement with His Majesty’s Government, and on conditions
acceptable to them.
(e.) A convention to be signed, on the basis of the accompanying draft, for the
future conservancy of the Shatt-el-Arab. This convention must be read in conjunction
with the accompanying memorandum (Annex No. 5) on the subject of the frontier
Mohammerah.
(/.) Permission to be given for three British steamers to navigate between Bagdad
and Bussorah in addition to the number already allowed.
(ii.) The respective interests of Great Britain and Turkey in the region of the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
7. His Majesty’s Government note with satisfaction that the Turkish Government
renounce their claims to Bahrein on conditions which there should be no difficulty in
accepting, but they have learnt with disappointment the attitude of the Imperial
Ottoman Government in regard to El Katr and Koweit; nevertheless they do not
doubt that the Ottoman Government wfill appreciate the important sacrifice made by