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96
                                                  APPENDIX E.
                                                   (See Section XIV.)

                         Communications made at Constantinople in regard to the proposal of
                             the Baghdad Railway Commission to make Koweit their Railway
                             Terminus. April 1900.

                                                          In his Despatch No. 130 dated 9th
                           No. 252 of Secret E., October 1900, Not. 175-2S1
                                                      .April 1900 Sir N. 0. Conor reported :—
                            I took an opportunity yesterday afternoon, in tho courso of an interview with the
                         Minister for Foreigu Affairs, to refer to the visit which the German Railway Commission had
                         paid to Koweit with a viow, as it was reported, to a harbour and terminal station for tho
                         Baghdad Railway.
                             I said that Her Majesty’s Government did not de9iro to interfere with the tlalut quo
                         or with the Sultan's authority iu those parts, but that they could not, in view of their great
                         interests iu the Persian Gulf, view with indifference any action which would alter thn existing
                         condition of affairs or give another power special rights or privileges over territory belonging
                         to the Sheikh of Koweit wiih whom Her Majesty’s Government had certain agreements. *

                            The same aft-moon the German Ambassador called, upon me. I enquired about tho
                         movements of tho Railway Commission, and whether they had delayed here uu iliuir w.*y to
                         Berlin. Baron von Marschall said that they had stopped only a very short time, and that he had
                         had little opportunity of talking to them.
                            1 then said that I had heard from Basrah that they had visted Koweit, and that I thought
                         it would be iu the interest of the great railway enterprise which they had undertaken that he
                         should know that Her Majesty’s Government had an agreement with the Sheikh of Koweit,
                         which, although not opposed to the status quo, yet prevented the Sheikh from making any
                         concession of territory to another power without the consent of Her Majesty’s Government. I
                         waB anxious, I said, that nothing should occur to deter British capitalists from participating
                         upon fair terms in the construction of the Baghdad Railway, and I thought it therefore a
                         friendly act to warn him of the position in which the Sheikh of Koweit stood towards Her
                         Majesty’s Government.
                            There was nothing antagonistic to the Ottoman Government in this position, but our
                         interests were so great in the Persian Gulf that we could not afford to look with indifferenoe
                         on any proposals tending to alter the condition of affairs. I felt sure also that it was not inf
                         the interests of the Anatolian Railway to do anything wliich would disquiet British subscri­
                         bers, and he knew that we were particularly alive to any proceedings in those parts.
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