trade in the Near East came from many quarters, including the navy, who were strongly
influenced by modern ideas of economic imperialism and the struggle for foreign markets.
One of the founder members of the Naval General Staff, A.N.Shcheglov, naval attaché in
Constantinople in 1909, complained that ‘now, when more than ever firm economic ties
are the best conductors and bases of a realistic and genuinely national policy’, there were
in Turkey ‘absolutely no Russian chambers of commerce, no commercial attaches, no trade
exhibitions, no knowledge of the market or trade routes etc.’
77
The Russian government
began slowly to awaken to the need for action. In 1909 a floating exhibition of Russian
goods spent several days in Constantinople. It was visited by 70,000 people and attracted
big orders for footware, railway sleepers and preserves.
78
In 1911 a joint commission of
officials and business representatives toured the major coastal cities of the Ottoman Empire.
Their report repeated the general criticism of Russian trade: poor credit, advertising, quality
and knowledge of the market, and high prices (15–20 per cent above those of her rivals).
Even established Russian exports were losing ground to German and Austrian goods. The
only bright spot was the subsidised Russian Steamship Company, which dominated the
carrying trade along the Black Sea coast.
79
The lack of correlation between Russia’s political,
strategic and economic interests was particularly glaring in the Armenian vilayets of eastern
Anatolia. Both Russia and Turkey had done all they could in the past to retard the
development of this remote and inhospitable plateau. There were no roads crossing the
frontier, but a very small quantity of Russian goods were beginning to appear in Van vilayet
from the Black Sea coast.
80
Russia was uniquely handicapped among the Great Powers in having no capital
investments, railway interests or concessions in the Ottoman Empire. She needed her
meagre resources for her own vast backward land, and political and strategic considerations
did not permit the application of the techniques of ‘peaceful economic penetration’ applied
by Witte in Persia and Manchuria at the turn of the century. Russia was not represented
on the Ottoman Public Debt Administration.
81
As a result, between 1881 and 1909 Russia
had but one financial lever of influence at the Porte, the 1878 War Indemnity of 802,000,
000 francs, which Turkey had to pay off at the rate of 8,000,000 francs a year. Russian
ambassadors Nelidov and Zinoviev had allowed arrears to build up and then used these to
block foreign loans to Turkey, to reduce the kilometric guarantee on the Baghdad Railway
and to secure the Black Sea ‘sterilisation’ agreement of 1900. Witte successfully resisted
French efforts to get the Indemnity merged into the Ottoman Public Debt, preferring to
keep it as an independent lever. The Indemnity was finally used by Izvolskii to smooth the
path of Bulgarian independence in 1909. Forty Turkish annuities were waived, thus reducing
the debt by 125,000,000 francs, more than enough to compensate Turkey for the loss of
the Bulgarian tribute, east Rumelian taxes and the loss of the Oriental Railway Company.
In return Russia received the Bulgarian tribute, 85,000,000 francs over eighty-five years.
Russia forwent 40,000,000 francs in what turned out to be a vain attempt to increase her
influence in the Balkans.
82
Just before the war Russia, under strong French pressure, was forced to modify her
negative attitude to Turkish economic development in the hope of salvaging at least some
crumbs of political influence. Gulkievich, councillor of the Russian embassy in
Constantinople, wrote to Sazonov in 1913 that it was simply no longer possible to exert
THE GREAT POWERS AND THE END OF THE OTTOMAN EMPIRE 81