Page 247 - Gulf Precis (VI)_Neat

Chapter XI. 221
212. When tlio mail contract was about to bo renewed in 1884, the
a. Political e., Febrnarj 1681. No.. 23-213. Euphrates and Tigris Navigation Company
Letter of Mr. J. K. Lynch to tho India Office, olaimcd that their Subsidy should bo
dated 23,d May 1883, Hid No. 237. raised frQm to £,j. Q00 per annum
on tho following grounds
“ J-bavo the honor, aa Chairman of tho Euphrates and Tigris Steam Navigation Company,
to inform you that, in order to meet tho exigencies of the postal service, the Company have
Font out to Basrah another fine steamer, ns an aid to those already on the Euphrates and
Tigris, and they beg leave to submit to the kind consideration of the Government tho follow­
ing oircumstauccs which induced them to do so.
It was found in the year 1880 that a ten days' postal service between India and Bagh­
dad did not meet tho requirements of tho postal service, and consequently by desire of tho
Government a weekly line was opened by this Company, and an additional clause was added
to the then oxisting contract by which this Company, without further remuneration, undertook,
as long as they could do so, with only two vessels to run a weekly service, which they have
been able punctually to carry out for nearly three years.
By the arrangements between tho Company and the Government, it was contemplated
that permission might possibly be obtained for a third stoamer to run, and in such case tho
subsidy to the Company was to be reduced in consideration of the profit to ho derived from
tho third vessel; but the expectation of profit from this source has to be abandoned, because
Turkish Government do not permit the third steamer to run nevertheless the Company, from
a desire to provide against the risk of interruption to service of the Government have cons­
tructed at a cost of £20,000 a new' steamer, the Mejidiah a first class vessol, which lias now
arrived and is running, and accordingly one of the steamers previously employed, the Bloat
Lynch has been taken off; so that the Company have now always one vessel lying idle and
ready to take the ploco of one of tho others in oase of need, but otherwise wholly unremu-
norativo."
213. As regards the third steamer neither Colonel Tweedio nor the Foreign
Colonol Twectlic’. letter No. 09, dated 141b August Department here could find any trace of an
1883. intimation haying been given to the Com­
Ibid, No. 241.
pany to place a third steamer to meet tho
exigencies of the postal service.
214. As a matter of fact tho weekly service was kept up by means only of
two steamers. And wo have seen that tho Turkish Government not only
objected to a third steamer, but even an old one being replaced. As to tho
subsidy the Government of India wrote to the Secretary of State:—
" Under existing arrangements, a subsidy of £3,600 is paid annually to the Company
and. the Company now asks that tho amount may be raised to £4,000 from 1st May 1881.
In our Separate Rovenuo Despatches, No. 24, dated 4th August 1873, and No. 19, dated 6th
SepSember 1S75, we have already expressed our views to the effect that the service betweeu.
Baghdad and Basrah might be secured at half the cost now incurred. We still consider that
a subsidy of Rs. 2,000 a month would be an ample remuneration for the service. We are also
of opinion that in the new contract tho amount of the subsidy should be fixed iu rupees pay­
able in India,
Wo take this opportunity of representing for Your Lordship’s consideration that (as the
Indian Post Office docs not require tho maintenance of this contract for tho conveyance of
mails in foreign territory) the Iudian revenue should not bear the whole cost of the subsidy.
We, therefore, submit that the cost should be divided between India and England.’
215. An agreement was ultimately entered into on 7th June 1884 with the
Bxtern.i a, Mb. 1881. Ko, H8.158, (No. is?). Company for a weekly service for 10 years
on a yearly subsidy payable by the Gov­
ernment of India of £3,600 (lis. 36,000) to he reduced to hy £1,200 in case
a third steamer was allowed to ply between Baghdad and Basrah by the Tur­
kish Government.
216. The agreement, dated 6th August 1896 (to tako effeot from 1st
External A., Noromber 1890, Noi. 172-181. May 1894) stipulate for an annual suDsidy
(No. 179).
of only lls. 24,000 for a period of 10 years I
(that is, up to 30th April 1904). There was no provision for a reduction in case
a third steamer was allowed.
For tho subsequent history of this Mail Service—see Chapter XII (sections
liv and xvi).
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