THE BAGDAD RAILWAY.

Dominion, Volume 6, Issue 1749, 14 May 1913, Page 7

THE BAGDAD RAILWAY.

REPORTED ' AGREEMENT. . TRANSFER OF TURKISH SHARES. by Telegraph—Press Aesool'ition—Copyright (liec. May 1-1, 0.15 a.m.) London, May 13. The "Daily Mail's" Constantinople correspondent states that a draft agreement will be shortly submitted to tho l'orto, transferring to Britain Turkey's shares in tho section of tho Bagdad railway southward from Bagdad to Bussorah and Koweit, on tho Persian Gulf, and settling questions affccting Britain, in tho Persian Gulf. The "Daily Telegraph" states that tho Bagdad Company, having lent Turkey a considerable sum, obtained the renewal of the right to construct the work on. the Gulf section, or financial advantages facilitating tho completion of the line. Negotiations with tho Porto sinco March, 1911, concerning the various countries' proportionate participation havo hitherto been resultlcss. It is understood that tho Anglo-Turkish agreement deals chiefly with Great Britain's special position ih tho Gulf. Other accounts state that after dclicato negotiating between Sir Edward Grey, Germany and tho Porte, it was now agreed that tho port of Koweit should be Turkey's subject to Britain's special imprescriptible rights. 1 Hcnco it is anticipated that tho Bagdad Company will shortly complete arrangements for a big loan to finish the railway. The Bagdad railway, when_ complete, will run from Konia, in Asia Minor, where it joins the railways to Smyrna and Haidar Pasha (opposito Constantinople), through Bagdad to the Persian Gulf, giving a short routo from Eastern Europo to Persia. Tho reconcession for it was granted in 1903 by Turkey to tho Anatolian Bailway Company, and by that corporation was made over to the Bagdad Hallway Company, which is in German hands. Tho length'of tho lina will bo IJO9 miles, of which only some 150 miles are as yet complete. The nominal capital of tho Bagdad Bailway Company is only .£600,000, and is largely in the hands of "the Dcutscho Bank, which thus controls tho ptjlicv. Tho cost of tho lino will bo about <£12,000,000, and tho interest is to be provided by tho Turkish Government, which guarantees a certain annual payment for each mile completed.