This Document
the Property of His Britannic Majesty's Government.}
C.O.
[B]
15433
CHINA RAILWAYS.
PECD Arco 7 MAY OS,
{April 17.]
CONFIDENTIAL.
SECTION 3.
[14372]
No. 1.
Sir J. Jordan to Sir Edward Grey,-(Received April 17.)
(No. 100. Confidential.)
Sir,
Peking, March 3, 1909. THE Russian Minister furnished me, in the course of conversation to-day with some interesting particulars which throw further light upon railway questions in Northern Manchuria, and may serve to supplement the information contained in my despatch No. 95 of the 1st instant.
It appears that the Chinese Government approached M. Korostovetz some little time ago through Sir R. Bredon, with the view of ascertaining whether the Russian Government would be willing to allow China to redeem the Chinese Eastern Railway Concession. It was suggested that the redemption should take place by means of payments extending over a term of, say, ten years, or that the repurchase should be made in sections beginning with the Harbin-Kuan-ch'engtzu section and gradually extending to the whole line."
M. Korostovetz was inclined to think that the proposal may only have been meant as a blind to cover the real object at which he considers China is aiming. The Chinese Government, he believes, are genuinely alarmed at the use which has been made of the Russian portion of the railway to acquire about 600,000 acres of territory in Manchuria, and wish to obtain some assurance that the line will not continue to be utilized as an instrument of Russian encroachment in the north and Japanese aggrandizement in the south. To obtain this, the Chinese started, according to M. Korostovetz' theory, by boldly offering to repurchase the whole line.
Be that as it may, the proposal is one which the Russian Minister does not think that his Government can entertain until the railway from Stretensk to Vladivostok is completed. Even then it would be necessary to make stipulations to prevent competition, as the new line down the Amoor will be 500 kilometres longer than the Chinese Eastern Railway, and not so favourably situated in other respects as a through route to the Pacific. As there is, however, a considerable body of public opinion in Russia unfavourable to the retention of the Chinese Eastern Railway, M. Korostovetz thinks it not impossible that the sale of the Kuan-ch'engtzu-Harbin section may take place eventually. The Duma, he says, views the annual deficit of 15,000,000 roubles with growing discontent, and no party in the State, except the military, wish to see 26,000 men permanently locked up as railway guards in Manchuria.
The immediate interest, however, of M. Korostovetz' remarks lies in their application to the question of railway Settlements. The Chinese Government having started the idea of repurchase are apparently not prepared to favour the proposal for international Settlements, and wish to revert to the impracticable policy of establishing Settlements on the model of those of Chinan Fu and other places "opened by China herself,"
M. Korostovetz, therefore, foresees as great difficulties on the Chinese side as on the side of the Russian railway authorities to the establishment of international Settlements, and would welcome any pressure that can be brought to bear upon his own Government or upon the Government of China to effect the solution which he himself favours.
I have, &c. (Signed)
J. N. JORDAN.
རྩྭ3
[224] r
242