of the French Foreign Office, and Professor Sir John Cadman, Director of His Majesty's Petroleum Department, were instructed to work out a compromise. Thus came into existence the San Remo Oil Agreement of April 24, 1920, by which Great Britain, in effect, assigned to France the former German interest in the Turkish Petroleum Company's concession for exploitation of the oilfields in the vilayets of Mosul and Bagdad.[10] But the British drove a shrewd bargain, for it was provided, in consideration, that the French Government should agree, "as soon as application is made, to the construction of two separate pipe-lines and railways necessary for their construction and maintenance and for the transport of oil from Mesopotamia and Persia through French spheres of influence to a port or ports on the Mediterranean." The oil thus transported was to be free of all French taxes.[11]
French imperialists likewise were dissatisfied with the disposition of the Bagdad Railway as provided for by the unratified Sèvres Treaty. French bankers had held a thirty per cent interest in the Bagdad line while it was under German control,[12] and they believed, for this reason, that they were entitled to a controlling voice in the enterprise when it should be reorganized by the Allies. Although the settlement at Sèvres—the Treaty of Peace with Turkey and the Tripartite Agreement between Great Britain, France, and Italy—recognized the special interests of France in the Bagdad Railway, and particularly in the Mersina-Adana branch, it provided, as has been seen, for international ownership, control, and operation.[13] Now, Frenchmen were suspicious of internationalization, particularly where British participation was involved. Had not the condominium in Egypt proved to be a step in the direction of an eventual British protectorate? Might not the history of the Suez Canal
