BRITAIN & PERSIA.

Dominion, Volume 4, Issue 1115, 1 May 1911, Page 5

BRITAIN & PERSIA.

PROPOSED RAILWAY. GERMAN PRESS RAISES AN OUTCRY. MATERIAL FOR GRAVE CONFLICT. By TclejraDh—Press Association—OoDjrieht (Rec. April 30, 5.5 p.m.) London, April 29. Tn accordance with Sir E. Grey's forecast in the House of Commons mi March 8 and n rescript read by Lord Morley in the House of Lords on March 22, Sir Edward Grey (Foreign Secretary) applied to the Persian Government for an option to construct a railway from Khormu-a Inlet through Ahwaz Shuster to Khoramabad, in the region which Britain and Russia looked upon as a neutral zone. The object of the scheme is to enable British goods for Persia, instead of entering Turkish territory, to go direct to Khormusa, and thence along a British lino linked with Russia's projected Khanikin-Teheran railway. Berlin, April 29. The Khormusa scheme.has led to a great outcry from the German press. The "R«ichsbote" says: "With the honey of. peace on her lips, Britain's unswerving purpose is to bar Germany's path everywhere, and frustrate her successes. Here we have again material for a grave conflict with Britain." STATEMENT BY SIR E. GREY. On March 8 Sir Edward Grey, dealing with the subject of the Bagdad Railway, stated that vne time to oppose the scheme was before tho concession was granted, and it was granted when the Opposition were in power. As to British trade interests, they. would be protected by the recognition of equal trading rights on these lines, but if the demand that preferential rights should not bo given were unsuccessful there would be no remedy, unless other concessions for railway construction could be secured. Britain was not, however, altogether powerless. The railways in Turkish territory were going to cost money, and if they were to be used to the disadvantage of British trade we could decline to sanction the imposition nf the I per cent. Customs duties, for which our consent was sought by the Turkish Government. He should be sorry to have to withhold consent, for he desired to see tho neiv Turkish regime strengthened. The Government were not anxious to disturb the status quo in the Persian Gulf or to acquire new territory; but if the status quo was going to be disturbed it would be our business to take care- that our treaty obligations with the Sheikh of Koweit were preserved. AX IMPORTANT DOCUMENT. Speaking in the House of Lords on March 22 Lord Morley made reference to Persian railways, and he alluded to a very important document. He said: lhe Shah in an autograph letter stated that the former promise with regard to the priority of the British Government over others in the construction of Southern railways held good, and that certainly whenever a railway concession in the North was given to others immediately a concession for a railway from Teheran to Sinister, or such a one, would be given to the English company. Positively no Southern railway concession, the letter continued, without consultation with tho British Government, would bo granted to nny foreign country. These explicit assurances were confirmed in the year 1900. His Majesty's Government cannot conceal from themselves that the question of railway construction in Persia may involve important strategical considerations t} which they cannot remain indifferent, but provided that these strategical and ccmmercinl considerations can be satisfied by adequate British participation in nny Southern railway scheme which may bo adopted by the Persian Government then his Majesty's Government, would not construe their preferential rights in any •narrow or exclusive spirit.