C. O.
[This Document is the Property of His Britannic Majesty's Governmen4965
CHINA RAILWAYS.
CONFIDENTIAL.
136689]
No. 1.
IREC
¡RED 25 OCT 09
758
[October 4.]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received October 4.)
(No. 330. Confidential.) Sir,
Peking, September 14, 1909.
I HAVE the honour to report the developments which have taken place since my despatch No. 309 (Secret) of the 1st instant was written, with regard to the question of the Chinchow-Tsitsihar Railway.
As reported in my telegram No. 144 of the 2nd instant, Mr. Straight had an interview on the previous day with the Wai-wu Pu on the subject. It was apparently thought advisable that he should take the initiative in dealing with the question, and should act for Messrs. Pauling and Co, as well as for the American group which he himself represents. By this means the agent of the British group would be kept in the background and the Americans would be left to encounter any opposition that might be offered by the Japanese. The proposals which Mr. Straight put before the Board for the construction and financing of the railway were said to have been favourably received, and Lord ffrench seemed sanguine that the undertaking would go through.
Mr. Straight himself, in an afterdinner conversation, gave me some further details connected with his negotiations. He said quite frankly that he was in a much better position than Lord ffrench to deal with the question as he was hampered by no political considerations. Not only that, but the United States had a strong lever for meeting Japanese opposition in an agreement relating to the South Manchurian Railway which had been concluded in 1905 between the Japanese Government and an American group and which had never been fulfilled. It was open to him to place Japan in an awkward predicament by demanding the revival of this undertaking at any time, as it was concluded prior to the agreement of the 22nd December, 1905, between Japan and China.
Mr. Straight thought that Japan's objections to the projected line were of a strategic rather than an economic nature, and to meet them it was proposed to put the railway under the control of a company proposed of American, British, and Chinese directors. He asked that his statements should be treated as confidential, but gave me to understand that I should be kept informed of the progress of the negotiations by Lord ffrench. The latter promised to furnish me with a copy of the proposals submitted by Mr. Straight, but, although more than a week has since clapsed, he has not yet done so,
I gather that the Chinese have shown some lukewarmness in the matter since the conclusion of the Manchurian agreeinents with Japan and consider that they must allow some time to clapse before resuming negotiations which may give umbrage to the Japanese.
I have, &c.
I am sending a copy of this despatch to His Majesty's Ambassador at Tokyo.
J. N. JORDAN.
[2471 d-1]