File 2764/1904 Pt 3 'Baghdad Railway: general negotiations 1910-1912.' [‎91r] (190/544)

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[This Document is the Property of His Br|fannic Majesty’s Government.]
i 4863
[B]
1911
ASIATIC TURKEY AND ARABIA.
CONFIDENTIAL.
[December 18.]
Section 4.
[50577] No. 1.
Sir G. Loivther to Sir Edward Grey.—(Received December 18.)
(No. 922.)
Sir, Constantinople, December 13, 1911.
IN my despatch No. 876 of the 29th November, I had the honour to report that
the Bagdad Bailway Company was engaged in negotiations with the Porte, the object
ofwhicii was to obtain an alteration of the original trace of the line between Mosul
and Bagdad, as laid down in the concession of 1903 to a new alignment, which would
pass through the district of Suleimanieh to Khanikin on the Persian frontier, and thence
to Bagdad. In itself the detour is almost trifling,*and seems at first glance to be
unimportant, but I venture to think that on closer examination it will be recognised
that if it becomes a fact, a situation will be created which will have grave consequences
for our interests. From the German point of view the change has several manifest
advantages, but, so far as we are concerned, it seems that their main object is to obtain
command of the traffic between Bagdad and Khanikin. If the new trace is adopted we
may safely assume that the line from Bagdad to Khanikin will be open in a very short
period, and in that case our transit trade to Persia, reaching Bagdad by river, will he
conveyed thence to Khanikin by the new line ; if we could place any faith in the
fairness of the German management, the improved transport should be of benefit to
trade in general, but I am personally quite convinced that such confidence would be
misplaced, and that experience would prove that while every sort of facility was shown
to German trade over the German rail, so every kind of obstruction and discrimination
would be practised against our merchants. It may, of course, be argued that this
would only be temporary, and that the construction of the contemplated international
Ottoman Company’s line from Bussorah to Bagdad would, as the Board of Trade believe,
put an end to such discrimination; but, with all deference to the expert opinion of that
department, I am personally unable to entertain any such hope, and I am convinced
that means will always be found by the Germans to favour their own trade at the
expense of ours. However that may be, the fact remains that lor a certain period, re.,
until the Bagdad-Gulf section of the railway is built, and built under _ conditions
intended to ensure us the administrative control, and to secure us against unfair
treatment on through traffic, our trade must be very much at the mercy of the Germans,
and during this period the Germans may succeed m gaining a foothold at our expense,
from which it will not be easy to dislodge them. If, on the other hand, the original
concession of 1903 is maintained, our trade will for a time also suffer, but as the bianch
from Sadiieh will in the nature of things not be constructed so soon as the trunk line to
Khanikin, the period of unfair treatment will be shorter. Moreover, so long as there is
no direct railway from Bagdad to Khanikin, there is always the possibility that such a
line may be constructed by the new company, which is to undertake the Bagdad-Gult
section,"and in which we hope to obtain a controlling interest , ,, , ,,
So far for the direct consequences to our interests; but I apprehend that the
indirect may be more far-reaching in the long run. They are, however, m the nature
of things more difficult to define, and I do not propose to do. more than indicate their
general character. The first is that if the new alignment is agreed to, we must be
prepared to see the development of the petroliferous fields around bulennameh fall into
German hands Mr D’Arcy appears to have lost interest m the concession, and, failing
any other British interest, 'it would be strange if with German engineers constantly
surveying the country German capital were not attracted to the prospect of its
exploitation ; moreover, the financiers who control the Bagdad Railway Company have
already interested themselves in the matter, and their attention to it has probably
revived A large increase of German influences in these regions is therefore to be
apprehended, and it could not of course fail to act prejudicially on our own position To
a certain extent this danger already exists, but it would be certainly increased and be
made more imminent if the German railway is to traverse these petroleum fields.
Again the diversion of the line fi om..the old trace implies that the moment when the
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