[This Document is the Property of His Britannic Majesty's Government.] 31
CHINA RAILWAYS.
CONFIDENTIAL.
[November 7.]
SECTION 1.
[40878]
No. 1.
Sir J. Jordan to Sir Edward Grey.--(Received November 7.)
(No. 178.) (Telegraphic.) P.
CHINCHOW-AIGUN Railway.
Peking, November 7, 1909.
In my opinion we should avoid any action which might be harmful to Paulings' interests or appear to place us on the Japanese as against the American side. I would, therefore, advise our not putting forward on our own account a proposal for Japanese participation, though I concur in the opinion expressed in your telegram No. 178 of the 5th instant, that what has occurred leaves us no option but to support such a proposal should the Japanese press for it. I have not received any further request for support from the Japanese Minister; indeed, I imagine that the Japanese now realise to what an extent the entry of the Americans upon the scene has modified the situation since the Japanese Ambassador's conversation with you on the 7th September, which you reported to me in your telegram No. 145 of that date.
If we desire to support Japanese participation in such a manner as not to injure the interests of the British firm, we can, I think, only do so by obtaining the co-operation of the United States Government and jointly urging on the Chinese Government the desirability of admitting the Japanese in accordance with your suggestion. Such concerted action would have, at any rate, a chance of success, for the Chinese are inclined to pay attention to advice received from the Americans, who are not considered to be moved by political considerations to the same extent as ourselves in this connection.
As regards Paulings' request for support in obtaining the final Imperial edict, I learn that the representatives of the British firm and of the American group are now awaiting a reply from the Chinese to their request for a definite decision which was sent in four days ago.
I have been told by the Russian Minister that his Government will expect to be consulted about the railway. I presume that their claim to a voice in the matter is based on the 1899 agreement. The visit of the Russian Minister of Finance to Harbin has, I think, aroused Chinese fears with regard to a possible Russo-Japanese entente on Manchurian affairs. I am assured, however, by my Japanese colleague that these apprehensions are groundless.
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