§ 1. Colonel YATEasked the Secretary of State for Foreign Affairs whether, considering that the main object of the proposed Trans-Persian railway is to secure through overland communication between Europe and India, the option which His Majesty's Government are considering for a line of railways in Persia, connecting with the Russian railways in the north and ending in Persian territory at or near the sea in the south, will provide for this line being commenced simultaneously at both ends; and whether the construction from the south end northwards will be carried out on an Indian gauge and the construction from the north end southwards on a Russian gauge, so that when the question of linking up with Indian railways comes up for consideration there will be no difficulty in providing that Indian goods shall have the same facilities of entry into Persia from the south without break of gauge that Russian goods will have in the north, and thus of securing equality of treatment for the commerce of both countries?
§ The SECRETARY of STATE for FOREIGN AFFAIRS (Sir Edward Grey)It is our desire that construction should begin simultaneously at both ends, but we cannot prevent railways from being begun in the sphere of Russian interest or stipulate that none should be begun there before British capital is prepared to make railways from the south. As regards break of gauge the question was considered with the Indian Government and for strategic reasons is was held that there should be a break of gauge when this railway entered the sphere of British interest, but for commercial reasons we have not stipulated that there should necessarily be a break of gauge in any railway connecting the north of Persia with the coast; so that Indian goods landed at a port could be carried into any part of Persia without break of gauge.
§ Colonel YATEMay I ask the right hon. Gentleman if commercial interests have not equal consideration with strategic interests in this matter?
§ Sir E. GREYBoth interests must have consideration. I should say that where strategic interests are vital they must have precedence of commercial interests, 861 but the object of my answer has been to point out that strategic interests begin to have predominance when the railway enters the British sphere, and until it enters the British sphere it would be against commercial interests to insist upon a break of gauge.
§ Mr. MORRELLWhen is it proposed to begin the work on this railway, or is the project actually under consideration?
§ Sir E. GREYIt is in just the same state as I explained the other day. What is under consideration now is whether the option shall be applied for which will enable surveys to be made for the making of the railway, but the question of whether the railway could be begun has not been settled. The other conditions will be agreed to subsequent to the option.
§ Colonel YATEIs it finally settled, then, that goods coming up from India by the railway are not to have entry into the neutral sphere of Persia without breaking gauge?
§ Sir E. GREYNo. I said that if they enter at a port outside, on the edge of the sphere of British interest, they would be able to come into Persia from south to north without break of gauge.
§ Colonel YATEBut those entering by the railway would not be able to—
§ Sir E. GREYThe hon. and gallant Gentleman is raising very hypothetical questions. If the railway was subsequently continued to make a junction with the Indian railway, as at present laid down, the condition of the Indian Government is that there should be a break of gauge when it enters the British sphere.