Both Governments agree to grant facilities for international traffic on
the Khanikin-Teheran and Khanikin-Baghdad
and not to introduce such measures as transit dues and differential tariffs. If, after the expiry of the term of two years, the building of the Khanikin-Teheran railway has not been. begun, Russia shall inform the German Government that she renounces the concession, whereupon the German Government shall obtain the right to apply for it. Russia binds herself not to hinder the completion of the Baghdad railway or to prevent the participation of foreign capital. She has the right to transfer the construction of the Teheran-rhanikin line to any foreign financial group. Both Governments pledge them- selves to grant to each other enjoyment of the privileges of this railway. We have written on the subject elsewhere and will only say here that if Russia gets nothing particular out of the Agreement—for the expected declaration by Germany that she would discourage Turkish aggression against Persia does not appear after all—it is a great matter that she has been able to preserve her independence to bestow her friendship where she pleases. We must add with satisfaction that the prospect of the building of a trans-Persian railway to India is brought appreciably nearer.
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