This contract was so obviously in contravention of earlier rights of
the Lynch Brothers, which had been specifically reaffirmed by the
negotiations with Turkey, that it was amended by an agreement of March
27, 1914, between Lord Inchcape, Mr. John F. Lynch, and the Bagdad
Railway Company. The latter arrangement provided: 1. That Lord Inchcape
should immediately organize the Ottoman Navigation Company to take
over the concession of July, 1913, and the rights conferred upon Lord
Inchcape by his agreement of February 23, 1914, with the Bagdad Railway
Company; 2. That the Lynch Brothers should be admitted to participation
in the new Navigation Company and that Mr. John F. Lynch should be
elected a director thereof; 3. That the Bagdad Railway should assign to
a new Ottoman Ports Company—in which Mr. Lynch and Lord Inchcape should
be granted a 40% participation—all of the rights of the Railway to the
construction of port and terminal facilities at Bagdad and Basra; 4.
That the Bagdad Railway Company should be granted a 20% participation
in the new Ottoman Navigation Company. Thus were Lord Inchcape’s
powerful interests further propitiated! Thus did the Lynch Brothers
cease to be big fish in a small pond, to become small fish in a big
lake!
Measures were now taken to protect another vested interest, the
British-owned Smyrna-Aidin Railway Company. On March 26, a draft
agreement, subsequently confirmed as part of the Anglo-German
convention of June 15, was executed by Dr. Carl Bergmann, of the Bagdad
Railway Company, and Lord Rathmore, of the Smyrna-Aidin Company. It
provided for important extensions of over 200 miles to the existing
Smyrna-Aidin line (including a junction with the Anatolian-Bagdad
system at Afiun Karahissar), granted to British interests valuable
navigation rights on the lakes of Asia Minor, and protected each
railway from discriminatory treatment at the hands of the other. This
settlement was approved by Herr von Kühlmann, on behalf of the German
Government; Mr. Alwyn Parker, of the British Foreign Office; and Hakki
Pasha, minister plenipotentiary of the Sultan to the Court of St.
James.[29]
Public-domain text, read in full here on John Shaqi.
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