File 4030/1913 Pt 1 'Baghdad Railway: Negotiations; Navigation of the Tigris and Euphrates' [‎195r] (193/280)

3
EUtf
fflOBlftl!
Belgian Cornpany, except after ample notice to the Foreign Office (see letter of the
secretary ol the British Company to the Foreign Office under date the 7th August, 1912h
At the date of Sir Edward Greys proposals, Germany had renounced her right to
participate in any share of the navigation of the rivers, so that the way appeared
clear for the benefits of the navigation to be divided between Ottoman and British
interests.
After considerable negotiation, and particularly after Mr. Slaughter had been
consulted by Mr. Lynch and seen the Foreign Office, Mr. Slaughter was told by the
Foreign Office on the 11th July that Mr. Lynch must either remain where he was or
negotiate with Lord Inchcape on the basis of Sir Edward Grey’s proposals of the
19th May. Mr. Lynch expressed his willingness to do so, provided that participation
in the local ’•management of the Ottoman Company and representation on the board
were not ruled out of discussion. However, about this time Lord Inchcape left for
Scotland. Accordingly, Mr. Lynch put forward his proposals of the 13th August (copy
herewith), which were shown to Sir Edward Grey by Lord Ronaldshay on the
12th August.
Those proposals may shortly be summarised as follows:—
1. The creation of a separate firm for the “management”* of the undertakings of
the Ottoman and British Companies, in which Lord Inchcape and Mr. Lynch would be
equal partners.
2. Mr. Lynch to accept such proportion of the share capital of the Ottoman
Company as would leave the control of the Ottoman Company with Lord Inchcape.
No reference is made to the Belgian Company, and the proposals were expressly
stated to be based upon the Germans having abandoned any claim to participate in the
navigation.
On the 2nd September, 1913, the Foreign Office notified Mr. Slaughter that the
Lynch proposals of the 13th August had been submitted to Lord Inchcape by
Sir Edward Grey, and that Lord Inchcape had replied that, “subject to some qualifica
tions which he would like personally to discuss with Mr. Lynch, he (Lord Inchcape)
accepted Mr. Lynch’s memorandum of the 13th August ‘as a basis for the fusion of
our respective interests in the management of the two concerns,’ ” and had suggested
that he (Lord Inchcape) should instruct his lawyers to prepare a memorandum for joint
discussion.
Not only does Lord Inchcape, in his acceptance of Mr. Lynch’s proposals of the
13th August, not say one word about the Belgian Company, but he expressly refers to
“ the two concerns,” viz., the Ottoman and British Companies.
The matter of the Belgian Company was mentioned at the interview which took
place at the Foreign Office on the 8th September, when Mr. Slaughter- met Lord
Inchcape, who had unexpectedly come up from Scotland on private business, Mr. Alwyn
Parker, and Lord Inchcape’s solicitor.
Mr. Slaughter was careful on that occasion to point out that Mr. Lynch’s proposals
said nothing about the Belgian Company, and also that Lord Inchcape’s acceptance of
the principle of Mr. Lynch’s proposals of the 13th August not only did not say any
thing at all about the Belgian Company, but expressly referred to “ the management
of the two concerns,” namely, the Ottoman Company and the British Company, and
that he (Mr. Slaughter) had no authority to bind Mr. Lynch in connection with the
suggestion of including the Belgian Company. ‘
It was then agreed that the memorandum Lord Inchcape had suggested his
solicitors should prepare should be drawn up. At a meeting which, with the approval
of Lord Inchcape, Mr. Slaughter had with Lord Inchcape’s solicitor on the 17 th September,
the first rough draft of this memorandum was submitted to Mr. Slaughter, and there was
no mention in it of the inclusion of the Belgian Company.
No other draft of this memorandum has been submitted to Mr. Lynch or
Mr. Slaught er.
Owing to Loid Inchcape’s protracted absence in Scotland, Mr. Slaughter saw
Sir Eyre Crowe at the Foreign Office on the 19th September with a view to learning
something about the concession to the Ottoman Company, and although the reply was
that we must learn the terms of the concession from Lord Inchcape, Sir Eyre Ciowe, in
a confidential letter of the 23rd September, forwarded to Mr. Slaughter the Turkish
declaration governing the concession to be granted by the lurkish Government to the
-British Government.
* Ihe proposals were accompanied by a separate memorandum defining 1 ‘ management.
[1908 hh— 2 ] B 2