File 2764/1904 Pt 5 'Baghdad Railway: Anglo-Turkish negotiations; concessions proposed in respect of Kowait; negotations with Hakki Pasha in London; Anglo-Turkish agreement.' [‎163r] (338/536)

[This Document is the Property of
ASIATIC TURKEY AND ARABIA.
CONFIDENTIAL.
[Amended Copy.]
No. 1 .
Board of Trade to Foreign Office.—(Received Jidy 8 .)
(Urgent and Very Secret.)
Sir, Board of Trade, July 8 , 1912.
I AM directed by the Board of Trade to acknowledge the receipt of your letter of
the 4th July, forwarding the draft of a memorandum respecting negotiations now
pending with the Turkish Government, which Sir E. Grey proposes to communicate to
the Turkish Ambassador, and to return the draft herewith with certain amendments,
indicated in red ink,* which they desire to suggest for Sir E. Grey’s consideration.
With regard to the several amendments, I am to point out that the words “ from
11 per cent, to 15 per cent, ad valorem” have been deleted from (hi) of the third
paragraph of the draft and from the heading to section (iii), since the effect of the
proposal for the special treatment of British cotton manufactures, set out in the amended
form of section (iii), will be to limit the rate of customs duty to something less than
15 per cent, in the case of an important item in the Turkish import trade.
The addition of certain words at the end of the fifth paragraph of the
draft has been suggested with a view to emphasising the close relation between the
withdrawal of the British claim to participate in the railway between Bagdad and
Bussorah and the other proposals dealt with in the memorandum.
In view of the amended form of section (iii) now suggested, the words deleted
from (a) of the sixth paragraph appear unnecessary.
The Board think it advisable to indicate in (b) of the same paragraph the necessity
of the British representatives upon the board of the railway from Bagdad to Bussorah
being approved by His Majesty’s Government, and they are also disposed to suggest
that, should Sir E. Grey see no objection, this opportunity should be taken to direct
the attention of the Turkish Government to the desirability of British representation
upon the board of the Bagdad Railway proper.
Finally, section (iii) of the draft has been amended so as to indicate more
precisely the attitude of His Majesty’s Government towards the proposed increase of
the Turkish customs tariff.
I am at the same time to forward to you herewith the draft of a railway convention
for submission, with Sir E. Grey’s concurrence, to the Ottoman Government, and to
state that the proposed schedule of cotton duties will be forwarded to you at the
earliest possible date.
I am. &c.
' H. LLEWELLYN SMITH.
Enclosure 1 in No. 1.
Draft of Memorandum to be communicated to lurkish Ambassador.
1 . HIS Majesty’s Government have not failed to examine with much care and
attention the important proposals which are embodied in the memorandum communicated
by the Imperial Ottoman Government on the 15th April last. . , ,
2. Throughout their deliberations, His Majesty’s Government have been animated by
the conviction that a complete agreement on outstanding questions is eminently to be
desired in the larger interests of both countries. They are persuaded that such an
agreement, to be justly appreciated, should be viewed, not only m the measure o
sacrifice or advantage which each individual clause may imply, but a so m i s cumu a ive
—