Anglo-Russian Entente
Germany drew away from Russia and became closer to Austria-Hungary, with whom it concluded the Dual Alliance in 1879. Germany also closely allied with the Ottoman Empire. The German government took over the re-organisation of the Ottoman military and financial system; in return, it received several commercial concessions, including permission to build the Baghdad Railway, which secured for them access to several important economic markets and opened the potential for German entry into the Persian Gulf area, then controlled by Britain. German interest was driven not only by commercial interests, but also by a burgeoning rivalry with Britain and France. Meanwhile, Britain agreed to the Entente Cordiale with France in 1904, thereby resolving differences between the two countries over international affairs. Britain also reconciled with Russia in 1907 with the Anglo-Russian Entente.