Page 76 - The Persian Gulf Historical Summaries (1907-1953) Vol IV_Neat

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til© Anglo-llussian Convention is likely to
oxcrcisb, sooner or later, upon the question of
railway construction in Porsia.
“ As you arc aware, the Convention provides
that neither of the Contracting Powers shall,
without previous nrrangoment between them,
oppose the grant of Concessions supported by the
other within tho limits of tho neutral zone, where
equality of commercial opportunity is likowiso
recognized to tho subjects of third Powers.
"It may, indeed, safoly be surmised that other
Powers will not bo slow to appreciate tho chnngod
situation, and to seek to turn it to advantage.
"Although the Russo-Persian Railway Con­
vention has still some years to run, the question
of future railway construction in Persia, and the
pledges made to His Majesty's Government by
the two late Shahs must not be lost sight of, and
a timely decision should be taken as to what
Concessions it would be most conducive to tho
interests of British policy to obtain for railway
construction in Southern Persia.
" In these circumstances, it seems advisable that
His Majesty’s Government should takfe into early
consideration the question of a possible attempt
to extend the Bagdad Railway into Southern
Persia, with a view to determining whether a
Concession of this nature to other Powers should
be opposed, or whether it should be forestalled
by timely action on the part of His Majesty's
Government, who, by securing prior rights of
construction, might render an extension of tho
Bagdad Railway under foreigu auspices economi­
cally undesirable.
" Sir E. Grey is unwilling that the history of
the Bagdad Railway Concession, which at one
time could have been secured to British enter­
prise, should find a counterpart in Persia.
Moreover, the extension of the Bagdad Railway,
as a foreign undertaking, in the direction of the
Indian frontier, would, on strategic grounds,
appear to be inadmissible; the grant of such a
Concession would compel the opposition of II is
Majesty’s Government, and a sharp diplomatic
conflict would ensue, whereas by tho exercise
of foresight such a crisis might be averted
altogether.
“ Turning now to the question of what specific
action His Majesty’s Government should take to
tho end in view, it appears to Sir E. Grey that a
British Concession for a railway from Bunder