Serious financial difficulties were encountered, however, in the
promotion of this plan. The Young Turk budget of 1910 had announced
that no further railway concessions carrying guarantees would be
granted. Even had the Government been disposed to depart from its
avowed intention, it would have been unable to do so. Suffering from
the usual malady of a young government—lack of funds—it was running
into debt continually and finding it increasingly difficult to borrow
money. Early in 1911 the Imperial Ottoman Treasury addressed a request
to the Powers for permission to increase the customs duties from eleven
to fourteen per cent. _ad valorem_. Great Britain immediately announced
its determination to veto the proposed revision of the revenues, unless
the increase were granted with certain important qualifications. Sir
Edward Grey informed the House of Commons, March 8: “I wish to see
the new régime in Turkey strengthened. I wish to see them supplied
with resources which will enable them to establish strong and just
government in all parts of the Turkish Empire. I am aware that money is
needed for these purposes, and I would willingly ask British trade to
make sacrifices for these purposes. But if the money is to be used to
promote railways which may be a source of doubtful advantage to British
trade, and still more if the money is going to be used to promote
railways which will take the place of communications which have been in
the hands of British concessionaires [_i.e._, the Lynch Brothers], then
I say it will be impossible for us to agree to that increase of the
customs duty until we are satisfied that British trade interests will
be satisfactorily guarded.”[35] This clear pronouncement of British
policy made it plain that no increased Turkish customs revenues could
be diverted to the proposed Alexandretta branch. It was even doubtful
if further funds would be forthcoming for the construction of the main
line beyond El Helif.
This complicated domestic and international situation led to the
conventions of March 21, 1911, between the Imperial Ottoman Government
and the Bagdad Railway Company. One of these conventions provided for
the construction of a branch line of the Bagdad Railway from Osmanie,
on the main line, to Alexandretta, but without kilometric guarantee or
other subsidy from the Turkish Government. A second convention leased
for a period of ninety-nine years to the Haidar Pasha Port Company
the exclusive rights of constructing port and terminal facilities at
Alexandretta—including quays, docks, warehouses, coal pockets, and
elevators. As in the case of the Bagdad Railway itself, public lands
were to be at the disposal of the concessionaires without charge,
and private lands were to be subject to the law of expropriation if
essential for the purposes of the Company. Within the limits of the
port the Company was authorized to maintain a police force for the
maintenance of order and the protection of its property.[36]
Public-domain text, read in full here on John Shaqi.
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