‘Bagdad Ry’ [‎27v] (54/129)

2
1899.;
To Foreign Office,
November 30,
1899.
To Foreign Office,
December 26,
1899.
To Foreign Office,
No. 602, Decem
ber 7, 1899.
However, in 1899 the German Government and German business men were
attempting to’obtain a Concession for the construction of a railway from Anatolia Peninsula that forms most of modern-day Turkey. to the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , but there was much obstruction on the part of the Turkish authorities,
nml in November Sir N. O'Conor reported that the Turkish Government was strongly
opposed to placing the line in German hands.
However, the Germans, by special favour of the Sultan, and a lavish expenditure
of money at the Palace (generally computed at 200,000/.), obtained an Trade, granting
them a concession which was, in principle, what they sought. This concession,
however, left all details to be settled at some future date.
On the 23rd December, 1899, an Agreement between the Turkish Minister of
Commerce and Dr. Siemens was signed, giving the latter permission to prolong the
Anatolian Railway to Bagdad. All questions of guarantee and the like were deferred
until full investigations had been made by a Commission, which was dispatched by the
Germans to examine minutely the whole of the country traversed by the proposed
railway
Referring to the above Agreement, Dr. Siemens told Sir N. O’Conor that the
original initiative had been taken by the Sultan himself, who had asked the Doctor
whether he was willing to construct the line. . .
After mature consideration, Dr. Siemens decided to enlist, il possible, TJritisn
capitalists in the scheme ; however, he first ascertained from the Berlin ho reign
Office that there was no objection, on the part of the German Government, to British
participation in the venture. u -i
On the strength of this, Dr. Siemens made overtures to the Smyrna-Aiclm Hallway
Company, which, however, were rejected. He then applied to the (French) Cassaba
Railway Company, although he preferred British co-operation to ! rench, and came to
an understanding with them—at the time he had not quite abandoned the hope of
obtaining British assistance. . . 1 .
1900. On the 15th April, Sir N. O’Conor, in the course of an interview with the Minister
To Foreign Office, lor Foreign Affairs, reminded him that a rumour had come to his Excellency s notice
April 16, 1900. that the Turkish Government proposed to send a Customs inspector and a harbour
master to Koweit. His Excellency insisted on the fact that, although the British
Government did not wish to interfere with the Sultan’s authority in the Persian Gull,
still they were desirous of maintaining the status quo, and could not view with
indifference any action which would alter it or give another Power rights or privileges
over territory belonging to the Sheikh of Koweit. .
The same afternoon his Excellency saw the German Ambassador, and m order
that no doubt should remain in his mind, explained to him very explicitly the British
official view of Koweit, making it quite clear that the Sheikh was not at liberty to cede
or otherwise alienate to the Railway Company either the harbour of Kathama oi any
part of his territory, without the consent of His Majesty’s Government.
His Excellency also said that he was anxious that nothing should take place which
would deter British capitahsts from taking part in the scheme, provided of course that
they obtained fair terms.* In the course of further conversation, the Baron von
Marschall expressed the hope that the British and Germans would come to an under-
1901.
To Foreign Office,
July 1, 1901.
To Foreign Office,
March 26, 1902.
1902.
Weekly Keport,
No. 12, 1901.
standing mutually beneficial. .
The Exploring Commission sent by the Germans completed its researches in 1 JuO,
and in June 1901 matters began to take definite shape. The French and German
capitalists negotiated among themselves, and after some difficulty came to the following
agreement, viz.:—
That France and Germany should participate equally in the project, each providing
50 per cent, of the capital.t
British capitalists were not actually approached, and Sir N. R. O’Conor was of
opinion that they would not take up the matter unless they received some encourage
ment from official quarters. He suggested to Mr. Babington-Smith that he should
communicate with Sir Clinton Dawkins on the subject.
This was the first time that the scheme was brought to the notice of British
financiers.
In November 1901, a draft of the Convention was prepared by the Germans, and
on the 16th January, 1902, an Trade was granted sanctioning its issue.
* In the year 1901, in August, Lord Lansdowne, in a despatch No. 285 of the 16th August, 1901,
informed Sir F. Lascelles that Count Metternich had called at the Foreign Office, where his Lordship repeated
to him the substance of this i: formation, without, however, referring to participation by British capitalists.
f This agreement was kept secret at the time, ami our first definite information on the subject was
obtained by Sir N. O’Conor from M. Constans, his French colleague, in March 1902.