This Document is the Property of His Britannic Majesty's Government
CHINA RAILWAYS.
CONFIDENTIAL.
[19641]
No. 1.
37616
[June 9.]
SECTION 1.
15.09 08
(No. 112.) Sir,
Sir C. MacDonald to Sir Edward Grey.-(Received June 9.)
Tokió, May 13, 1908.
ON receipt of Sir J. Jordan's telegram No. 86 of the 25th ultimo, addressed to you and repeated to me, I took an opportunity of sounding the Minister for Foreign Affairs as to the probability of his Government favourably considering a proposal to the effect that the Chinese Government should construct a line from Hsin-min-tung to Fakumen, provided it stopped there and a branch was made from that place to the South Manchurian Railway. Sir J. Jordan, in his telegram, expressed the belief that the Japanese Minister at Peking would recommend this solution to his Government.
I regret to report that Count Hayashi did not seem favourably disposed towards this project, which did not, in his opinion, dispose of the main objection to the new line, which was that it would carry all the produce of that district, and thus injure the South Manchurian Railway. His Excellency believed that Tong Shawi was aware that he was in the wrong on this question, and that it would be settled as soon as some formula could be found which would "save the face" of that official.
I have, &c.
(Signed) CLAUDE M. MACDONALD.
P.S. (May 14.)-The morning the above was written a Reuter's telegram from London appeared, stating that the Japanese Government were on the point of settling the question on the basis set forth in Sir John Jordan's telegram. I saw Count Hayashi the same afternoon, and drew his attention to this piece of news, which was of course in direct opposition to what he had told me. His Excellency said the telegram was quite untrue, and was doubtless instigated by "the other side." He said he intended sending a contradiction to the papers. In this morning's "Japan Times" this contradiction appears, and I have the honour to inclose a cutting of the same, in which the writer points out that if this were done, the Hsin-min-tung-Fakumen line, with the proposed junction line, would become a greater competitor of the South Manchurian Railway than without it.
I inclose a sketch map, which explains the writer's arguments, which appear to be sound.
C. MacD.
Inclosure 1 in No. 1.
Extract from the "Japan Times," May 14, 1908.
SINMINTUN-TAKUMEN RAILWAY QUESTION.
REGARDING the Reuter telegrams about the proposed Sinmintun--Fakumen Railway, which we published yesterday, the message was worded loosely and there is a fear of its leading to some misconception. The despatch said that Japan was expected to withdraw her opposition to the building of the road, provided China agreed to connect Fakumen with a point of the South Manchurian Railway. Supposing the proposed line is to be built and the connection is to be made as indicated above, the junction with the South Manchurian will naturally have to be at a point on that line nearest to Fakumen, say, Tieling. What will follow? The carrying traffic between Tieling and Mukden will become lost to the South Manchurian, for China will make every effort to have the traffic below Tieling switched on to the Sinmintun-Fakumen Railway via the connecting line. The consequence will be the proposed line will become a greater competitor of the South Manchurian with the junction line than without it. It is absurd on the face of it that Japan should be expected to agree to such an arrangement. It is possible, however, that this country may favourably
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