6
of Portsmouth, to the Russian railways in South Manchuria and all the rights pertaining thereto, it became a matter of simple necessity to her that she should arrange with China some definite regulations concerning the working of the mines along the railways, which constituted the principal item of the rights included in the above succession. China shared the same view. And it was agreed in the Peking Conference that the workable regulations shall be arranged in due course.
In consequence of this agreement the aforesaid negotiations were opened in 1907. But owing to one or two minor points of detail failing to find complete and final agreement, and, in addition, important changes in the personnel of the Chinese authorities concerned in the meantime, the main agreement remained short of being made definite. Hence in article 4 above referred to it has been provided to have the regulations drawn in conformity with the principles which had already undergone
up full discussion and found general agreement on the whole in the course of the negotiations. It was nothing more than to save both parties from the unnecessary trouble of retracing the same grounds, so exhaustively covered in previous negotia- tions, which would bring profit to neither party. To a careful and impartial reader of the article in question it will be but a matter of self-evident clearness that no possible hint as to the existence of any secret agreement on the subject could he derived from it.
In the second place, along the South Manchurian Railway, there is no mine of special value except these of Fu-hun and Yetai, over which Japan acquired rights as a result of the Treaty of Portsmouth; nor is there much prospects of valuable assets in mines along the Antung-Mukden Railway, except the Pen-hsi-hu coal mine. In the course of settling various matters of common concern to China and Japan in Manchuria, it is only natural that both parties, in conformity to the spirit of the Peking Protocol, should find it necessary to dispose of the question, if only in so far as to lay down the basis as to the drawing up of the regulations for exploiting the mines along the railways.
As to the Pen-hsi-hu Mine, it was worked solely by the Japanese at the outset, but later, by mutual consent of the two countries, it was made a joint undertaking, and the necessary regulations are now being arranged at Mukden. The negotiations are being conducted in quite an open manner, without the least element of secrecy. That the negotiations in 1907 were also conducted in the like manner, is also a self- evident fact that no person, possessing in any degree information as to the circum- stances at the time, will find any room to doubt.
To re-capitulate: Article 4 in the recent Manchurian Agreement is nothing more or less than a provision for procedure of arranging the regulations for practical working of the mining properties, which is simply an outcome of, and sequel to, the Peking Protocol, and it has given no fresh concession of rights to Japan under whatever cover, nor does it refer to any previous secret concession agreement. Neither can it possibly be construed as tantamount to the nullification of the principle of the "open door and equal opportunities." As to an insinuation that it violates the treaty rights of other Powers, the exaggeration is too plain to need any refutation.
C. 0.
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[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[30157]
No. 1.
RECE ¡Rect 3 NOV 09
791
[August 10.]
SECTION 4.
Sir J. Jordan to Sir Edward Grey.-(Received August 10.)
(No. 135.) (Telegraphic.) P.
CHINCHOW-TAONAN-FU Railway.
Peking, August 10, 1909.
I bave received your telegram No. 131 of yesterday's date, and have discussed the position with Pauling's representative.
Lord ffrench is aware that His Majesty's Government are prepared to support him whenever he should desire it, but does not think that the timo is yet ripe for requesting our active assistance, as he is of opinion that until the negotiations with the Chinese are in a fairer prospect of settlement it will be useless to approach the Japanese legation on the subject.
It cannot be said that the discussions with the Chinese have advanced the matter to any great extent, but there seems no reason so far to doubt the genuine intention of the Chinese to construct the railway or the fulfilment of their promise to give Paulings the contract for the same.
[2389 kg
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