» EDITORIAL INFORMATION SERVICE OER GEE FOREIGN PoLicy ASSOCIATION IVY NINE EAST FORTY-FIFTH STREET, NEW YORK CITY BY-REQUEST D This Service provides editors and publishers with essential facts on 410 international questions, gathered from reliable sources and assembled UNIVERSITY OF VIRGINIATE| without bias for use in preparing editorials and special articles. - UM tae *X03258841 4* 5-26 no.4 Series 1925-26 November 17, 1925 non, 4. BRITISH INTHRFSTS IN MESOPOTAMIA The political and economic importance of that section of Mesopotamia known as Iraq is a signi- ficant factor in the boundary dispute betwden Great Britain and Turkey, which is now awaiting settlement by the League of Nations, This Re= port, supplementing that on "The Turco-~Irag Boundary Dispute", deals more particularly with the special interests of Great Britain and the Competition for control of the Mosul ollfielde. It covers the following subjects: Pre-war Strategic and Hconomic Interests 4 The British Military Campaign, 1914-18 Mosul Oil and the Turkish Petroleum Company Creation oF the Kingdom of Iraq, 192k Anglo-Iraq Treaty, 1922 Results Of Briwdsh Occupation PRE-WAR ECONOMIC INTSRESTS ' Special British interests had already been established in Mesopotamia by the latter part of the Mineteenth century. Horm fidtiy years a Britisn company has enjoyed a practical monopoly of river trade on the Tigris and Shatt-el-Arab. “Throughout this period there has been a moderate amount of trade \between Great Britain and Mesopotamia. Of greater economic importance, however, has been the more recent development of the Anglo~Persian Oil Company (see also page 3), a controlling interest in which was acquired by the Briuish Admiralty in 1913 for the purpose of asstring naval.oil supplies. Before the war the Anglo-Persian Oil Company was operating importantses refineries and storage tenks et the head of the Persian Guild. in: 1914 it participated with German and Dutch interests in the forma- tion of the Turkish Petroleum Company which in the same year was promised by the Imperial Otvoman Government a concession to the par- tially surveyed oil fields of Baghdad and Mosul. PRE-WAR STRATEGIC INTERESTS The vigorous promotion of the Baghdad Railway project by German capitalists between 1903 and 1914 resulted in an awakening of British anxieties. Fearing that foreign control of this new route to India might threaten its strategical security, Great Britain took steps to protect the head of the Persian Gulf against German encroachments. Already in 1899 the subsidized Sheikh of Koweit had submitted to British control in matters of foreign policy. Great Britain scored a further success when it was a reed by the Anglo-German Convehtion of June 15, 1914, that the terminus of the aghdad Railway shoul be at Basrah--100 miles up the Shatt--el-Arab--rather than a Persian Colt ports. The same Convention provided for the election of two British citizens to the Board of Directors of the Baghdad Railway Company. {> ~ THE BRITISH MILITARY CAMPATGN, 1914-1918 z 2c ic and strategic in- eat Britain planned the Mesop amicn campaign of 1914 1918, On Nov. 6, 1914, the day after war Was declared against Turkey, a British-Indian force, con entrated in readiness at Bahrein, landed and captured a fcrt at the mouth of the Shatt-el-Arab. The prospective Chief Political Officer accompanying the Foree pmo claimed to the Arab population Great Britain's regrets at having been forced into war by the vnprevoked hostility of the Turkish Govern- ment, explaining that the canpaign was to be directed against the if Tt was partially to safeguard tnesc Nan wl TeReSsus ila i Turks, not the Arabs. Tt would be, an Tacu, @ cempaign for the Lib- eration of the Arabs of Iraq. By July, 1915, the Vilayet of Basreh was in British hands, In the spring of 1917 Kut, Baghdad and Semarrah had been added. British forces had been campaigning in the Vilayet of Mosul for five months when the Mudros Armistice between Turkey and the Allies was signed in October, 1918; and on November 8 the town of Mosul itself was occupied in accordance with the terms of the armistice. THE BRITISH ASSUME CONTROL OVER MOSUL There are indications that during the course of this campaign British cstimates of the strotegic and economic value of the Mosul Vilayet underwent a change ™ 1914 the British Government had been willing to recognize tre 8s ecial economic rights of Germans in that tereucory, later, in) doko, the British Government agreed, by the terms of the secret Sykes--Picot Treaty, thet the Mosul Vilayet should become a French sphere or influence. re to bring pressure to bear on Clemenceau to favor of Great Britain. Clemenceau acceded to Lloy 2 Ke TT But in 1918 Lloyd George began relingaish the Vilayet in d George's demand 7 on Feb. 15, 1919, but only afver it had been made clear to him that asid e the if he refused to do so the British Government would sethe entire Sykes-Picot Treaty, Maeve yy ace was to receive full sov— ereignty over Cilicia, southern Armenia, and the Syrian coast, to- Bether with zones of influence extend: ng Lien from Byer ce the Persian frontier, The British campaign in Mesopotamia thus resulted in the effec~ elimination from the Mosul area of oo tice (a) The Germans, whose economic penetration of the. country during the last decade had been ph Aerie (0) The French Government whose practical interest in the Mosul Vilayet as a hinterland for Syria had been of short dura- buon, The only rival claim which was not effectively eliminated was that of the Turkish Government which not only encouraged agitations in the Mosul Vilayet, but refused to recognize the validity of the Treaty of Sevres by which that Vilayet had been ceded to the Allies; furthermore, on Aprid 16, 1925, it emhasized its claim to Mosul by granting to an American eae heaaed by Admiral Chester a railwa concession involving extensive territories in Anatolia and the dis- puted terricory, OST-WAR ECONOMIC INTERESTS The confusion arising from the dual Claim to the Vilayet has served to delay the exploitation of its natural resources, Of these iy SiS generally believed thet O11 is by £ar the moc important, al- though no adequate survey has yet been made and the actual extent of its oil reserves is not know British diplomatists have re- peatedly denied knowledge of the. plans of oil promoters in this jreq, and have refused to allow the oil question to be br ught into bound- ary discussions That there is nevertheless a certain relation be-— tween the two subjects is evident when tne history of the Turkish Petroleum Company is considered, 6 FCUNDING OF TURKISH PHTROLSUM COMPANY The Company represented a nunber of rival invereste. he decade 1904-1914 had witnessed a struggle between German, Dutch and Britisn capitalists for the right to exoloit Mesonotamian oil re- erves, the title to which was vested in the Imperial Outoman Gov- ernment. Dutch hopes had centred unon an influential Ottoman friend, German hopes upon the claim to priority of consideration established by a preliminary Sng survey or the Tigris and Fuphrates Valleys; while British hopes had relied upon the strength of the Anglo-Persian Oil Company (founded 1909 ) already establisned in the neighboring OLltields of Persia, In 1914 the rivalry of these interests was ended by the inaugu- ration of the Turkish Petroleum Company in which the German and Dutch companies each Dee ee do to the extent, of cov white tie Anglo-Persian Oil Company received 50%. (It willl be remembered that tie Bird tach Admiralty owned & controlling interest in the latter company). It was this new combine which on June eo, LOLA, obterned the promise of a concession from the Ottoman Government for develop-a = wiles ment Of Oilficlds im the Vilayets of Baghdad and Mosul, REORGANIZATICN OF TURKISH PETROLEUM CCLMPANY In 1920 the former German interests were transferred by Great Britain to France in return for guarantees of uninteFrupted trans- portation of oil to the Mediterranean eecross the French sphere of influence, The American Government intervened at this juncture pro- testing that the Anglo-French agreement constituted a violation of the open-door principle, that it ignored American interests, that it presupposed the validity of the unsubstantiated Turkish promise of June 28, 1914, and infringed upon the rights of Iraq which alone could grant concessions in the Vilayet of Baghdad. Ultimately six Or seven American oil companies were together granted 25% partici- pation in the Turkish Petroleum Company, since when there have been issued by the American Government no protests against its activities. THE 1925 OIL CONCESSION But the Turkish promise of a concession in a territory of which it was no longer in actual control could not serve as a basis of ac- tivity for the newly reorgenized Company. It therefore sought and on March 14, 1925, obtained from the Government of Irag a 75-year concession for the development of oil reserves in the Vilayets of Baghdad and Mosul. Since the Vilayet of Mosul is still legally urkish the application to the Iraq Government for a concession in the area more than atoned for the former infringement of Iraqi rights cbjected to by the American Government. It was in accordance with the advice of the British High Come missioner in Baghdad that the concession was granted to the Turkish etroleum Company. The toking of decisive action of this sort in anticipation of the Leegue boundary award geve opportunity to the Opposition press in Hngland to repeat its charges that the entire Iraq policy of the British Government had becn motivated by an am~ bition to control Mesopotamia's oil resources. An entirely differ- ent empnasis was placed upon the proceedings by the Prime Minister of Iraq, however, who was quoted in "Al-Istiklal," a Baghdad Nation- alist daily, as saying that the concession had been negotiated at this moment because it was necessary to make a public claim to the territory whose ownership Turkey was contesting, Whether this ac- tion was mainly a retort to the Chester Concession or not, it. leaves the Turkish Petroleum Company in an anomalous position until the frontier is determined, Meanwhile no development of oil resources can be undertaken in Mosul Vilayet itself, POLITICAL SITUATION IN IRAQ (1) Arab Aspirations: The British had entered Mesopotamia as the avowed liberators of the Arab subjects of Turkey. The question of the status of Iraq thus came into prominence upon the cessation of hostilities, and has continued since that time to exercise the minds of the inhabitants, Harly in the War the Arab leader, Hussein, had named as the ?aise: > price of his adherence to the Allicd ceuse an independent Arabia ex~ ep k tending from-Mersiné and Mardin to the Persian Gulf and the Red Sea, The British reply-to this demand not only exemplifies the importance attached to its Mesopotamian interggts, but also foreshadows its subsequent administrative policy. “It conceded an independent Arabia in the southwestern portion of the aren described by Hussein, but concluded as follows: ",...With regafd to the Vilayets of Baghdad and Basra, the Arabs will recognize that the established position and interests of Great Britain necessitate special measures of administrative control, in order to secure these territories from foreign aggression, to promote the welfare of the local populations end to safeguard our mutual economic interests, " (2) The Civil Administration, 1915-1920: There was little delay in the carrying out of this poLiey, From January, 1915, onward a civil administration was being estab- lished in the territories Successively occupied by the British forces, At headquarters the usual departments of a central governe ment were organized. There was a British Director for eaen.. buat im some cases the immediate assistants, and in most cases the majority of the subordinate staff, were Arab. In the Liwas (counties) British Political Officers were associated with native Assistant Politica Officers in the civil administration. As long as uncertainty existed as to the duration of the British regime, much of the administrative work had to be of a tentative Character, But in 1920 the failure of a general uprising of extreme Arab Nationalists and the crystallization of Allied plans for a British mandate in Mesopotamia gave to British administrators and Arab Nationalist leaders alike a conviction that there was no imme- diate prospect of the termination of British control over that terri- vOry:. (3) The Kingdom of Iraq is Set Up: Military government was nominally terminated in October Loo. when the British High Commissioner appointed a Provisional Arab Gov- ernment, By August 1921 it had been decided, after the. holding of two popular referenda, that Iraq should be organized as a constitu- ional monarchy under the Emir Feisal, son of the King oF the Hedjaz. fois, as the protege of Great Britain who had been driven by the rench from the ill-fated Arab Kingdom of Damascus, was- not only the nominee of the British authorities but also enjoyed the approval of 964 of the population of Iraq, as shown in the second referendum, (4) The Anglo-Iraq Treaty: It had meanwhile become apparent that Iraqi susceptibilities were affected by the Allies' decision to establish a British mandate in the country. Since Great Britain had adopted the policy of fosters ing a moderate Arab nationalism in Iraq, it was found expedient now to describe British control in terms COmpatible with the dignity of @ Sovereign state such as Iraq wished itself to be considered, Thus,.-O- instead of embodying in a formal Mandate its plans for the adminis- tration of Iracg, the British Government contracted 2 treaty with King “eigal to regulate the relations between Great Britain and Iraq. Again, the annual report which Great Britain undertoox to submit to tie Permenent Mandate's Conmission of the League was described not as a report on the administration of iraq but as a report on the manner in which the terms of the Anglo-Irag Treaty were being carried out, (S) Terms of the Treaty: The Treaty itself, though Dilidine the King oF iraq to be guided in financial and foreign policies by British advice, guaranteed Irag & nominal independence and assured British assistance toward se- curing for it ultimate membership in the Lengue of Nations. The Treaty was to continue in effect for a Verm Of years orieival i: fixed at twenty, but later reduced to four. Upon its expiry a fresh agreement would be concluded to regulate subseguent relations be-~ tween the two countries, A hierarchy of advisars was to be asso- Clated with the Arab administration, the British High Commissioner acting as adviser to the King, a British adviser being furnished for each ministry and e British Inspector assisting the Mutessarif of each Liwa. Half of the High Commissioner's salary and the entire Salaries of other advisers were to be met from Iraqi revenues, The integrity of the State would be maintained, during the Treaty period, by both British and Iraqi forces, the latter being gradually in- creased so that British assistance should no longer be necessary after the termination of the eS eib Ww 4e J SOMB RESULTS OF THE BRITISH OCCUPATION Among the recorded results of the British occupation the fol- lowing items are Specially noteworthy:--the reduction of the judi- Clal system and the land registration system to some degree, of order: the practical encouragement of agriculture and sericulture; the rea Organization of education; the insistence on higher teaching stan- dards; the maintenance of hospitals and dispensaries; the checking of severe outbreaks of cholera; the construction of over 700 miles” Of railroad; the Opening up of an automobile road to Damascus, and, in general, the provision of trnined and efficient administrators to take the place of the former Turkish political employees bound to an antiquated and unprogressive administrative system. Of these ad vantages the Vilayet of Mosul has enjoyed a proportionate share, ATTITUDE OF IRAQIS TO BRITISH OCCUPATION Iraqi sentiment varies grently with respect to the British oc- Cupation, The fairly widecpread recognition of Irag's present need of British assistance is often coupled with an impatient desire for that need to terminate, The reduction of the Anglo-Iraq treaty period from twenty to four years (a result of pressure brought to bear by Arab Nationalists and British taxpayers alike) was greeted with en- thusiasm in Iraq. The Cabinet of 1923 avowed its intention of insti- tuting negotiations with Great Britain for a permanent relationship based on mutual rights, to toke the place of the existing temporary treaty which was felt to be unilateral, inasmuch as it bound Iraq to unconditional acceptance of British advisory control but left Great Britain free to determine when Iraq should be proposed as a member of the League of Nations, The press complained of the number ofet a ‘Superflaous Enelishmon" aa Indians criployed in the administration, and there was frequent coment On the liberality of British-Adviscrgs Salaries, In 1994 there were 150 foreien Orficials in the Dew Or the Iraq Government, It WaS urged that this number be specdily roa duced by €lininating those in junior ang nonetechnical positions, A growin nationalist sentiment chafed at foreign control, Ss THE OCCUPATION AS A HUMANTITARTAN INVESTMENT a A SE LTARIAN INVESTMENT British taxpayers have spent 150, 000, 000 pounds sterling on the administration of Iraq including the Vilayet of Mosul, Tteig am ane vestment on which returns 2re Slow, and in consequence many Hnglish- men advocate oa policy of withdrawal. As an investment for the wel. Dene Ox jhe Iragi population it has unquestionably begun to earn dividends, But these were diminished by the nationalist uprising f 1920 and by the outbreak of sporadic disturbances requiring dise Ciplinary measures, The Opposition press has repeatedly been sug- pended, and Several Wea Nationalist leaders have been deported, The disorders have in Scveral cases made necessary a resort to air action, The destruction of Several villages in this manner, although Said to have been Carried out without TepOrted Loss of Wife anc with excellent disciplinary SEECCG. dic regretted by the Occupyihg author~ ities who woula prefer to spend a Smaller percentage of the national revenue on defence and a larger bercentage on social reorganization, The 1924.95 Budget showed an appropriation of 118 lakhs (about $4,130,000) for defence , while the appropriations for agriculture, health and education Combined amounted CO Se. on lakhs, (about $1,827,350), Meanwhile the rate of taxation in Iraq has been about 1? rupees ($5.95) per head: OF Population, This ig high for a non- industrial Country, There is an annual deficit in the Budget, The Financial Mission which reported in June, 1925, advised drastic econ. Omies and the Postponement of further administrative improvement une til the Budget Should have been balanced, THE OCCUPATION AS A FINANCIAL INVESTLENT ee ENCTAL VEST As a purely financial investment the British Occupation hag not yet commenced to bring in returns, The country has POSsibilities aS a& producer of cotton, Brain, oil and Other Commodities, but as the Financial Mission points Out, tine ig required for its development, "The Operations of the Turi sh Petroleun Company", it reports, "must remain Practically at o Stendstill until the determination Of the northern frontier, Thereafter there must be long~continued prospect~ ing and, if the resulis of the Prospecting JUStIfy it, the construc- CaOM: (One a Pipe-line to the Mediterranean, It is added that there ig Li tit we Likelihoog o= Steady financial returns before 1932. fay ghie Case of cotton &rowing, also, several years must elapse before any appreciable profits are realized, Meanwhile the annual cost to spot Britain Ons maintaining control in Iraq is over 4,000, 000 pounds sterling, The Baldwin Government has expressed its Willingness to prolong British Control in Iraq for another twenty-five years if thereby the Vilayet of Mosul may be assured tO iraq, Tne Supporters of the @oy~ ernment base their hope of reimbursement on a belief in the economicae possibilitics of the comtry, ane affirm that. already the British occupation has been morally justified by the marked increase i Mas produced in the security of life end property, one the new impetus “it has given to Iragis of education and integrity to enter the pub- lic service, thus laying, 2 foundation for the strong national state which it is the professed nin of Great Britain to establish in Mesopotemia. “