File 2764/1904 Pt 4 'Baghdad Railway: Anglo-Turkish negotiations; proposals of Turkish Govt; status of Kowait' [‎81r] (166/674)

Government would be well advised to modify the attitude they have taken up on
k adm’itted° n th ^ CaS f lf t l le P rl . u f P le L of re-purchase by the Turkish Government
is admitted, the exercise of such a right should be made subject to an undertaking
'Vot bd preSe " t ?g ree ™ ent ln re g ard t0 the exclusion of differential treatment should
(c.) Pecuniary indemnity to he -paid to the Bagdad Railway Company in respect of its
renunciation of the right to construct the section of the railway between Bagdad
and the rersian Gulf.
The Turkish Government say that this charge must be borne by the proposed
new company for the railway south of Bagdad. It was always supposed that this
i.u ^ 11 ° ; and W n “ WeU 0 b j ect Indeed ’ Sir H ' Babington-Smith has pointed
out that this is really lurkeys affair: Germany claims 2 , 0001 . for each kilometre
abandoned by her; and Sir H. Babmgton-Smith has suggested that Turkey would do
well to offer bonds of the face value of 2 , 0001 . in place of cash, especially since the value
oi these bonds has fallen about 10 per cent, during the present war.
(d.) Fiver Dues.
It seems equitable that Turkey should impose such dues for services rendered in
dredging and such like operations in the Shatt-el-Arab; but we propose to discuss
this point further in relation to the proposed riverain commission.
(e.) Prolongation of the Failway from Bussorah to the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
His Majesty’s Government proposed, and Turkey agrees, that the best terminus for
the moment would be Bussorah.
But His Majesty’s Government further proposed that, in the event of the railway
ever being prolonged to the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , it must be brought to Koweit under conditions
to be settled by agreement between Great Britain and Turkey alone, and that a clause
to this effect must be inserted now in a convention dealing with these matters.
Turkey replies that there is no present cause for contemplating a continuation of
the railway beyond Bussorah, but that, nevertheless, the Turkish Government are
prepared to give to His Majesty’s Government all assurances necessary to disperse any
anxieties which may be felt concerning the continuation in question.
His Majesty’s Government have every reason to insist upon a settlement of this
question now, when they are negotiating for a general settlement, and possess the
powerful lever of the customs increase.
The Turkish delegates have represented that Turkey could not agree to the
terminus of this Turkish line being under the control of either an Arab Sheikh or a
foreign Power.
The Turkish point of view is intelligible ; and it was partly owing to the difficulty
of finding a satisfactory solution otherwise that His Majesty’s Government suggested
that the railway should stop at Bussorah. We think therefore that His Majesty’s
Government should maintain the view, in which the Turkish Government acquiesce,
that the principal terminus should be at Bussorah, and that the prolongation to the
Gulf should merely be regarded as a branch. But there is some danger that the
Turkish Government might, if they could not secure arrangements satisfactory to
them at Koweit, bring the Gulf branch to Urn Kasr or elsewhere, and that the
Sheikh of Koweit might deplore such a development. The Sheikh seemed gratified
in 1907 when His Majesty’s Government concluded the lease of_ the foreshore, as he
interpreted the transaction as a clear indication that the terminus of the Bagdad
Bail way would be at Koweit, and consequently that the commercial wealth of the port
would be increased. But we would not attach too great weight to this consideiation
provided that the Sheikh’s position is secured. i 11 i
We accordingly think it important that the Turkish Government s 1011 d >e
induced to bind themselves to bring the branch from Bussoiah to tie u , i an
when constructed, to Koweit under conditions to be settled at the time between
Turkey and Great Britain; but that the position of Bussorah, as the real terminus,
* I understood them to say that if the Bagdad Railway Concession were extended, the other should
be extended also. Could we not compromise on that? A. II. agiee. * . j. .