‘Bagdad Ry’ [‎28r] (55/129)

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On the 21st this Convention was signed by Zilmi Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. on one part, and Dr. Zander
and M. Huguinm on the other; the Convention had, however, been subject to con
siderable and important modifications, the most important of these are as follows :—
Article I. Line terminus at Zobier and Bussorah instead of Koweit and Kagima,
right being retained by the Company to prolong to an unstated point on the Persian
Gulf.
Article IV. Time for completion of the whole line from Konia to Bussorah
reduced from twelve to eight years.
Article VIII. .Transfer of the line to another Company debarred.
Article IX. Rights of navigation of the Tigris and Euphrates reduced to rights of
navigation for transport of material in aid of construction only.
Article XII. Anatolian Company to have all rights of linking any points of the sea
coast between Mersina and dripoli with the main line, if the Government approves.
Article XXII. Monopoly of mines struck out. Mines along the line are open to the
public, but the Company still maintains the semblance of a preferential right, which
would probably frighten away other speculators.
Article XXXV. Annuity to be paid by Government to the Company, 12,000 fr. per
kilom. of road open to traffic, also 4,500 fr. per kilom. for working expenses of traffic.
N.B. Revenues for this purpose not designated in the Convention, but referred
to in Annex.
Article XXXVIII. Branch line to Kharput and Diarbekir.
Article XLI. Temporary line between Hamidieh and Kastambol.
Two annexes were also made to the Convention, viz.:—
Annex I. The Anatolian Company undertook that the annuities mentioned in
Article XXXV would not be charged to the existing revenues of the State, but to
others which might be realized at some future time, viz.:—•
1. Increase of customs duties.
2. Creation of five monopolies.
3. Economies relating to the unification of the Public Debt.
Annex II. The Company undertook not to colonize any part of the line
Eaily in March 1902 the Deutsche Bank presented to the Ottoman Bank an To Foreign Office
agreement to form a Syndicate to carry out the Concession. Private,March li,
Lord Lansdowne was of opinion that the moment was ripe to explain to the offl p
Germans that the port of Koweit would only be open to them on the understanding Telegraphic,
that British capital was placed on an equality with that of France and Germany; the March 24, 1902.
British Ambassador concurred with this view.
On the 24th April an important telegram was sent by the Foreign Office to
Sir N. R. O Conor, instructing him to inform the Sublime Porte that England was obliged
to afford the Sheikh of Koweit full assistance against any attempt to encroach on his
territories; that the British Government did not wish to obstruct the Bagdad Railway,
but unless Bi itish capital received a fair share in the enterprise, in respect of con
struction and materials, England would not undertake to constrain the Sheikh, whose
good-will was essential to the railway’s success.
Sii • D* G Conor laid these points before the Grand Vizier, but was unable to To Foreign Office,
refer to the subject of participation to avoid arousing the Sultan’s fears of an Na 144 ' March
international control of the line. 25 » 1902 -
In April Sir N. R. O Conor saw the German Ambassador, and pointed out to him To Foreign Office,
that until quite lately England had been kept in the dark as to the real terms and No * !73, April 10,
conditions upon which the French Syndicate had agreed. He stated that English 1902 -
capitalists could only count on the British Government’s support on the condition that
they had an equal share with the others, and he drew attention to the fact that British
interests were threatened by the proposed increase of customs duties which was to
meet the guarantee.
Early in June, Count Vitali, acting for the French, and Dr. Zander for the German To Foreign Office,
group, began to arrange differences, and fixed a meeting to be held in Paris on the Jline 7 > 1902 -
20th June.
Sir N. R. O Conor suggested that this would be a good occasion to present British
demands through Sir Clinton Dawkins, in order to ascertain unofficially how matters
stood. The I oreign Office agreed to this, but held that the Morgan firm was not Foreign Office,
suitable, owing to some friction in the city over the shipping combine, which of course ^graphic,
is now past history. ' Jlllie o 19 02.
At the beginning of September 1902, Sir Clinton Dawkins, on behalf of Morgan
and Co., interviewed Mr. Gwinner, who argued that it had been agreed to allot
[2106 ee—1] & B 2