‘Bagdad Ry’ [‎23v] (46/129)

12
(Received on the 11th September 1905 with Political Secretary’s letter No. 34<, dated the
25th August 1905.)
BAGHDAD BAILWAY. [4th August.]
CONFIDENTIAL. Section 1.
No. 1.
Sir G. Clarke to the Foreign Office.
Committee of Imperial Defence,
2, Whitehall Gardens;
My dear Sir Thomas, 4th August 1905.
I venture to send you a note on the present position as regards the Baghdad
Bailway, with proposals for an international arrangement.
I do not know whether anything is now possible, hut the Germans may
perhaps be more amenable than they were, as the difficulties of proceeding
further are more fully realised.
Believe me, &c.,
G. S. Clarke.
Enclosure in No. 1.
Memorandum respecting the Baghdad Bailway,
The Situation on 31st July 1905 1 and Suggestions for an Arrangement*
.As was expected, the Germans appear to be increasingly anxious to secure
British co-operation in the Baghdad Bailway. If the figures given in financial
statement of the line are correct {vide Foreign Office Paper, section 1, 24th
July 1905), the cause of this anxiety is evident.
2. The sum available for the construction of the Konieh-Ere^li section
under the kilometric guarantee was 54,000,000 fr. Of this sum 48,834,881 fr.
have apparently been expended on construction, and 771,637 fr.’on rolling-
stock (total, 49,606,518 fr.), so that but a small sum is left available to
supplement the guarantee on the more difficult section of the line which must
now be undertaken.
The kilometric guarantee of 11,000 fr., when capitalised at 4 per cent,
is sufficient to cover the cost of construction at the rate of 17,000£. per mile.
3. If it is true that 15,700Z. per mile has been expended on the
construction of the Konieh-Eregli section, it is highly probable that the next
two sections, which involve the crossing of the Taurus range, will cost nearly
double that sum. Sir N. O’Conor, on the 6th June, reported that the estimated
cost of these sections was for a considerable distance at the rate of 25,600/
per mile. Thus for many miles there will be an expenditure of about 10 000L
per mile not covered by the kilometric guarantee.
4. It is noteworthy that the cost of construction of the line, according
to the official statement, has been considerably greater than has been reported
from other sources. r
/MnAnn 9 f,n i J I fv 0 ^ 0nOTrep0rt 1 ed 1 inJune . that 0d1 * V 1,alf the su m provided
(54,000,000 tr.) has been expended on the line (*.<?., about 8,700/. per mile).
He further stated that about 800,000/. has been distributed amon°* the
bankers and others who participated in the scheme. °
Dr. Zandar (Director-General of the Anatolian Bailway) is reported to
have stated last spring that the cost per kilometre was less than 5 000/ fahrmf
8,000/. per mile), and that the balance of 54,000,000 fr. “went’in expenses
including money spent on Turkish officials ”. 1 5
5.. These figures are not necessarily inconsistent with the official
financial statement, as money distributed among the bankers and others could
not be shown m the accounts otherwise than as expenditure on the construe
tion of the line.
6. As railways in India cost about 12,000/. per mile, includins equin-
ment and rolling-stock, it is probable that the above figures (8.000/. or 8 700/
per mile) are substantially correct.