intended increase in tariff duties, or of the proposed monopolies or taxes on the consumption of alcohol, petroleum, matches, tinder, cigarette-paper, playing cards, and sugar to the extent necessary for the completion of the Railway."
3. The terminus of the Bagdad Railway was to be Basra. Both of the signatory Powers declared that under no circumstances would they "support the construction of a branch from Basra or any other point on the main line of the Bagdad Railway to the Persian Gulf, unless a complete understanding be previously arrived at between the Imperial Ottoman, the Imperial German, and His Britannic Majesty's Governments." The German Government furthermore pledged itself under no circumstances to "undertake the construction of a harbor or a railway station on the Persian Gulf or support efforts of any persons or companies directed toward that end, unless a complete agreement be previously arrived at with His Britannic Majesty's Government."
4. The German Government undertook to see that "on the lines of the Bagdad Railway Company, as hitherto, no direct or indirect discrimination in transit facilities or freight rates shall be made in the transportation of goods of the same kind between the same places, either on account of ownership or on account of origin or destination of the goods or because of any other consideration." In other words, the German Government agreed to enforce Articles 24 and 25 of the Specifications of March 5, 1903, which provided that "all rates, whether they be general, special, proportional, or differential, shall be applicable to all shippers and passengers without distinction," and which prohibited the Company to enter into any agreement for the purpose of granting reductions in the rates announced in its published tariffs.
5. In order further to protect British interests the German Government assumed responsibility for the election to the Board of Directors of the Bagdad Railway Company of "two English members acceptable to His Britannic Majesty's Government."
6. Both Powers pledged themselves unreservedly to observe the principle of the economic open door in the operation of railway, ports, irrigation, and navigation enterprises in Turkey-in-Asia.
7. Great Britain recognized German interests in the irrigation of the Cilician plain, and Germany recognized British interests in the irrigation of the lower Mesopotamian valley.
8. Both signatory Powers took cognizance of and agreed to observe the Anglo-Turkish agreement of July, 1913, conferring important navigation rights in Mesopotamia upon British sub-
