[This Document is the Property of His Britannic Majesty's Govement) 7
AFFAIRS OF CHINA.
CONFIDENTIAL.
[39322]
No. 1.
24 DEC 07
[November 30.]
SECTION 4.
526
Sir J. Jordan to Sir Edward Grey,-(Received November 30.)
(No. 481. Confidential.) Sir,
Peking, October 8, 1907. REFERRING to my despatch No. 246, Confidential, of the 25th May last and previous correspondence on the subject of telegraph negotiations between China and other Powers, I have the honour to report that the Agreement with Russia, of which a summary was given therein, was signed yesterday by M. Pokotilow, the Russian Minister, and Mr. Dresing, the Superintendent of the Chinese Imperial Telegraph Administration.
The Chinese Telegraph Administration purchases from Russia all the telegraph lines which the latter had seized or built in Manchuria beyond the limits of the Chinese Eastern Railway for a sum of 120,000 dollars (12,9981.). The total length of these lines is about 2,200 miles, and, according to M. Pokotilow, they had cost Russia over 200,000 dollars (21,6604.).
One of the clauses in the Agreement expressly stipulates that when the junction of the South Manchurian and Chinese Eastern Railways is effected at Kuan Ch'eng-tzu, Russia shall accept no telegraphic messages from the Japanese Railway Telegraph Administration. The Russian telegraph line along the Chinese Eastern Railway is to transmit messages only between stations on the railway and to Russia and Siberia, not to places in Europe beyond Russia, and the Chinese Telegraph Administration is to receive a royalty of 2 cents per word upon all messages so transmitted. There is, I understand, a special stipulation regarding the Sungari land line which contemplates its reverting to Russia in certain eventualities.
Mr. Dresing, who furnished me with these particulars, seems to think that the Agreement will be useful as a lever in bringing the long-pending negotiations with Japan to a conclusion. These arrange themselves under three main beads :----
1. An Agreement regarding the Chefoo-Dalny line
;
2. An understanding about the Sasebo-Dalny cable and telegraphic communication
between Japan and Manchuria;
3. A limitrophe arrangement with Japan regarding Corea.
to accept
The Japanese still wish the Chinese Telegraph Administration messages in kana at the rate of seven kana a word, but to this the Chinese have a strong objection.
The Cable Companies continue to be effectually protected in their through traffic to Europe by the various Agreements relating to China, and the only possibility of a land junction which might injuriously affect their interests seems to be across the Russo- Corean frontier.
Japan now treats Corea as virtually a part of her own territory for telegraphic purposes, and claims that, the Agreement of 1882 with the Great Northern Company being no longer applicable, she is at liberty to establish cable communication with Corean ports as with Dalny and Port Arthur. It is worth noting in this connection that Japan is reported to be negotiating for the purchase of the Tsushima-Fusan cable from the Great Northern Telegraph Company. This cable was worked for many years by the Japanese, but the Company receive a royalty of 50 cents a word on the traffic, and have derived a handsome revenue from this arrangement. But even if her engagements with the Great Northern Company permitted her, the terms of the present Agreement with China would seem to indicate that Russia, as explained in the Postmaster-General's letter of the 19th June last, copy of which was inclosed in your despatch No. 256, has no intention of favouring the land lines at the expense of the Cable Companies.
I have, &c. (Signed) J. N. JORDAN.
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