Anglo-German negotiations concerning the Berlin-Bagdad Railway and German naval and commercial jealousy of Great Britain are touched upon in further sections of the personal memorandum. Prince Lichnowsky says that the Bagdad Railway treaty aimed in fact at a division of Asia Minor into spheres of interest, although this expression was carefully avoided in consideration of the rights of the Sultan of Turkey. Sir Edward Grey asserted repeatedly that there was no agreement between England and France aiming at a division of Asia Minor. The greatest concession that Sir Edward made to Prince Lichnowsky personally was for the continuation of the railway line to Basra. By this treaty the whole of Mesopotamia up to Basra became a German zone of interest by which all British rights and the question of shipping on the Tigris were left untouched. The British economic territories, the Prince adds, included the coasts of the Persian Gulf and the Smyrna-Aden Railway, the French territory was Syria, and the Russian Armenia. Had the treaty been concluded and published, he continues, an agreement would have been reached with Great Britain which would have finally ended all doubt of the possibility of Anglo-German co-operation. GERMANY'S NAVAL THREAT Referring to the difficult question of German naval activity, Prince Lichnowsky says that the creation of a mighty fleet on the other shore of the North Sea and the simultaneous development of the Continent's most important military power into a most important naval power had at least to be recognized by Great Britain as uncomfortable. To preserve the supremacy of the seas which Great Britain must have in order not to go down, the Prince adds, she had to undertake preparations and expenses which weighed heavily on the taxpayers. Nevertheless, the powers become reconciled to the German fleet in its definite strength. Obviously it was not welcome to Great Britain and, the Prince says, constituted one of the motives, but neither the only nor the most important motive, for England to join hands with Russia and France. On account of the German fleet alone, Prince Lichnowsky says, Great Britain would have drawn the sword as little as on account of German trade, "which, it is pretended, called forth her jealousy and finally brought about war." "NAVAL HOLIDAY"