This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[24807]
No. 1.
391
[July 18.]
SECTION 2.
Sir C. MacDonald to Sir Edward Grey.-(Received July 18.)
(No. 132. Confidential.) Sir,
Tokió, June 8, 1908.
BARON HAYASHI, Japanese Minister in Peking, returned from his post on the 23rd, and shortly afterwards the newspapers published reports of an interview which a representative of the "Mainichi Dempo" had with his Excellency, from which it would seem that the latter had expressed himself with regard to Japanese policy in China in a very outspoken manner.
With regard to the Hsinmintung-Fakumen Railway, Baron Hayashi's remarks are particularly frank. His Excellency is quoted as attaching little importance to the parallel line argument, for he is of opinion that if the railway is really destined to develop Manchuria's resources there is no reason to oppose its construction. Nor does he think that the operations of the South Manchurian Railway are sufficiently important to warrant it in claiming a monopoly. He is further of opinion that, as Manchuria is Chinese territory, it becomes a question whether, and for how long, not in Manchuria, but in all parts of the world, Agreements of an abnormal character which impair the sovereignty of the lord of the soil, ought to possess operative force. The above is the gist of the "Mainichi's" report so far as the Hsinmintung-Fakumen Railway is concerned, but Baron Hayashi is almost equally outspoken with regard to the other points on which his Government are at variance with that of China.
On the day the above was published, the 25th instant, I met Count Hayashi, and in the course of conversation asked whether his namesake (they are in no way related to each other) had been correctly reported. His Excellency replied that the report was correct, and he had that morning spoken to Baron Hayashi with regard to his indiscretion in allowing himself to be interviewed. Count Hayashi, however, did not seem to consider the indiscretion in any way serious, but on the contrary it seemed to afford him some amusement. The Baron, he said, was always renowned for his courage, both physical and moral, in fact, he was a regular Samurai." I suggested that such outspoken statements made by the Japanese Representative on the spot might embarrass his Government, which held almost diametrically opposite views. Count Hayashi admitted this, and blamed the indiscretion, but seemed rather pleased that his namesake had the courage of his convictions.
I asked whether Baron Hayashi would return to Peking. His Excellency said "No." He had done excellent work both in Corea and China, and it was intended to promote him as Ambassador to Rome!
On the following day Baron Hayashi, who is an old friend of mine (having been Secretary at the Japanese Legation at Peking when I was there as Minister), came to see me.
He admitted that in principle he was entirely at variance with his Government as regards the Hsinmintung-Fakumen Railway, and he regretted that he could not persuade them to see matters as he did. He considered, however, that his Government were technically right, and that both Paulings and the British and Chinese Corporation should have been informed of the existence of the prohibitory Article in the Protocol of 1905 by the Chinese Government before matters had gone so far, but in principle he thought all Agreements and Conventions which interfered with the sovereign rights of any Power were wrong, and he considered that China should be allowed to build this railway even though it did compete with the South Manchurian Railway; since his return he had endeavoured to persuade his Government to take a broad view of this question, but the opposition of the merchants, and, he added with a significant smile, the military party had been too much for him. There are no indications at present of the Japanese Government yielding on the point of this railway, though there is a very general desire to come to terms with China on all outstanding questions. The continuation of the railway from Fakumen to Tsitsihar is particularly distasteful to the Japanese Government. From what Baron Hayashi...
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