MR. GIBSON BOWLESTo ask the First Lord of the Treasury what communications have passed between His Majesty's Government and Foreign Governments relating to the German Anatolian or Baghdad Railway or to its extension to Koweit on the Persian Gulf; with what Governments have such communications passed, and what is their effect, and has been their result; have His Majesty's Government been approached with any proposal for giving encouragement to the building of that railway either by guaranteeing to it a postal subsidy or in any other manner; if so, what policy do they propose to pursue in the matter; and will he lay on the Table any correspondence that has taken place.
(Answered by Mr. A. J. Balfour.) There have been no formal communications between His Majesty's Government and any Foreign Government on the subject of the Baghdad Railway. The proposed railway is not, as suggested in the Question, to be a German railway. The subject was referred to in two brief conversations, one with the French and one with the German Ambassador, about thirteen months ago. Lord Lansdowne then stated that we should not regard the undertaking with unfriendly eyes provided that British capital and British interests were placed at least on terms of equality with those of any other Lower. I am not aware that these conversations have (in the language of the Question) had any "results," or have exercised any influence on subsequent events. Communications have been and are still going on with British capitalists on the subject. No final arrangements have been arrived 1248 at. The proposals under consideration involve no guarantee of a postal or any other subsidy. The suggestions to be made to us, are, Ave understand (1) that British capital and British control are to be on an absolute equality with the capital and control of any other Power: (2) that, in respect to the negotiations which are now going on with the Turkish Government for a new Commercial Treaty (and which, quite apart from the Baghdad Railway, raise the question of increasing the Turkish Customs), His Majesty's Government should not object to a reasonable increase in these duties, although a part of the increase is to be used in guaranteeing a railway so important for the commercial interests of Turkey; (3) that, if the railway should prove to be a substantially better route for conveying the mails to India, it may be used for conveying those mails, on terms to be agreed upon hereafter; (4) that His Majesty's Government should assist, not by money or the promise of money, but by their good offices in providing a proper terminus at or near Koweit. These suggestions will be carefully considered.