[This Document is the Property of His Britannic Majesty's Government.

CONFIDENTIAL.

AFFAIRS OF CHINA.

JUL 08

[June 15.]

SECTION 3.

(No. 175.) Sir,

No. 1.

Sir Edward Grey to Mr. Bryce.

Foreign Office, June 15, 1908.

THE American Ambassador made a communication to me on the 12th instant from Mr. Root, saying that Mr. Root had spoken frankly to the Japanese Ambassador at Washington, explaining that the interpretation put upon the railway rights by the Russians at Harbin was equivalent to creating an imperium in imperio in Manchuria, and that the American Government held that to claim sovereign rights for a Railway Concession would be inconsistent with the "open door." Mr. Whitelaw Reid added, though he was not instructed to say this, that the German Government had committed themselves very strongly to the United States' view.

Mr. Root considered that at this juncture it would be very useful if I would, directly or indirectly, let the Japanese Government know that we shared this view.

I reminded Mr. Reid that he had expressed to me previously an apprehension that the Japanese support of the Russian position at Harbin was due to some Secret Agreement between Russia and Japan which covered this point. I could not discover that Russia and Japan had any Secret Agreement binding them to support each other in claiming such rights, and I was not sure to what extent Japan was supporting the Russian contention at Harbin. Our position had been that we could not take a leading part except where British interests were concerned. But we were certainly in favour of the doctrine of the "open door." With regard to Customs Regulations at Dalny, equal rates on the Manchurian Railway, and other points which had arisen already, we had taken up this position with Japan, and these points had for the most part been settled satisfactorily.

I asked Mr. Whitelaw Reid whether he would have any objection to my telling the Japanese Ambassador about the communication he had made to me.

He said he did not see any objection, and I told him I would find an opportunity of speaking to the Japanese Ambassador on the subject.

Mr. Reid explained to me that the point was that if Japan entered into a combination with Russia against the "open door" she would find herself indeed on the side of her old enemy, but opposed by all those who had been her friends.

I told him that we could certainly support the "open door" ourselves; and if I had shown any hesitation in taking an active part as regards Harbin, it was because I wished that any action we took should clearly appear to be prompted by British interests and not by a desire to make difficulties with other Powers where British interests were not concerned. They were, of course, concerned with the maintenance of the "open door" in Manchuria generally, and I would make this clear.

I am, &c.

(Signed) E. GREY.

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