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[This Document is the Property of His Britannic Majesty's Government."
CHINA RAILWAYS.
CONFIDENTIAL.
39215
[November 8 2 DEC 09
SECTION 1.
141350]
No. 1.
Question asked in the House of Lords, November 8, 1909.
The Earl Stanhope,--To ask His Majesty's Government (1.) In view of Germany's assertion of rights to participate on equal terms in the construction and financing of railways in the Yang-tsze provinces, whether His Majesty's Government recognises German claims to an exclusive position in mines and railways in Shantung. (2.) Similarly, whether Russian financiers having intimated their intention of participating in railway enterprises in the Yang-tsze valley, the Anglo-Russian Convention of 1899 with regard to railway enterprise in China has been abrogated, and whether in that case British enterprise is in a position to claim equal opportunities in the region north of the Great Wall. (3.) Whether it is not advisable to determine the geographical limits within which the Japanese Government is entitled to veto or intervene in such measures as the Chinese - Government may desire to take for the development of Western Manchuria and Mongolia.
Answered by the Earl of Crewe,
As regards the first question, His Majesty's Government has not given the German Government any assurance in that sense. The case raised by the second question is of a somewhat different character. The proposed participation by the Russians in railway enterprise in the Yang-tsze Valley is confined to a loan, which is not secured by any mortgage on the line, and that loan does not appear to contravene the terms of the Anglo-Russian Agreement of 1899. I ought to add that we do not anticipate that British participation in railway enterprise north of the Great Wall on similar terms to those on which the Russians are engaged in the Yang-tsze Valley will occasion any protest on the part of the Russian Government. When we are considering these matters it is important to remember that, owing to the great change that has taken place in the position of affairs in China since the two agreements alluded to by the noble Earl were made, all new railways in China will be under the control of the Chinese Government. In regard to the third question, the noble Earl was conscious that he was treading on somewhat risky ground. I am afraid I cannot follow him into the matters raised by that question. As the matter stands, it is one entirely for arrangement between the respective Governments of China and Japan.
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