§ Sir P. HANNONasked the Secretary of State for Foreign Affairs whether he will make a statement on the circumstances under which and the conditions which attach to the transfer of the ownership of the Iraq railways from His Majesty's Government to the Government of Iraq; and if he will give the original cost of the construction of those lines and the annual contribution towards the cost of maintenance out of Imperial funds during the past five years?
§ Viscount CRANBORNEIt was stipulated in Section 4 of the Financial Agreement attached to the Anglo-Iraqi Treaty of 1930 that the legal ownership of the Iraqui railway system should be transferred on certain conditions from His Majesty's Government in the United Kingdom to the Iraqi Government. Insuperable difficulties were, however, encountered in giving effect to this arrangement, and, as a result of prolonged negotiations, an Agreement was signed in Bagdad on 31st March for the transfer of the railways to the Iraqi Government on a different basis. This Agreement is subject to ratification and will therefore be laid before Parliament in the usual manner in the form of a White Paper as soon as possible. As regards the second part of the question, the track was constructed at different periods and in varying circumstances and the greater part of the original track was built by the British authorities during the War for military purposes. In these circumstances any figure purporting to represent the original cost of construction, however calculated, would only be misleading and. would bear no relation to the present commercial value of the existing railway system. There has been no contribution from Imperial funds towards the finances of the Iraqi railways since 1923.