[This Document is the Property of His Britannic Majesty's Government.]

[B]

CHINA RAILWAYS.

CONFIDENTIAL.

194

CO

4196

[January 17 FEB 10

SECTION 1.

[1744]

(No. 2.) Sir,

No. 1.

Sir A. Nicolson to Sir Edward Grey.-(Received January 17.)

St. Petersburgh, January 1910.

I GAVE M. Isvolsky, the day before yesterday, the substance of your telegram No. 1375 of the 30th December, so far as it related to the attitude of His Majesty's Government towards the project of the Chen-Chow-Aigun Railway. I told his Excellency that he would have doubtless received from Count Benckendorff your views as to the scope and bearing of the engagements of 1899, so that I need not refer to that point.

M. Isvolsky read to me a telegram from Count Benckendorff, reporting a conver- sation which he had had with Sir F. Campbell, which seemed to accord very fairly with the observations which you were good enough to convey to me in your above- mentioned telegram in respect to the interpretation placed by His Majesty's Govern- ment on the undertakings of the Russian and British Governments respectively, as recorded in the notes of 1899. terms of the communication from Count Benckendorff, I did not consider it necessary As M. Isvolsky appeared to take no exception to the to make any remarks myself.

I observed to his Excellency that he was now in possession of the views and attitude of His Majesty's Government, and of their readiness to see Russia and Japan participate in the enterprise, and I asked him whether he could inform me in what light the Russian Government regarded the project.

M. Isvolsky said that in the first place he much doubted if the Japanese Govern- ment would be willing to associate themselves with the undertaking, as he conceived that it would compete seriously with their Manchurian line. As to the view of the Russian Government, he could not at present give me any indication, the question being one which would require the most careful study. The proposed line might or might not injure the Russian railway commercially and also affect the interest of Russia at Harbin. On these points he could as yet give no definite opinion. There were furthermore the strategical questions to be taken into consideration, and to these he appeared to attach the greater importance. I remarked that if Russia were to take part in the enterprise and acquired an interest in the railway the strategical difficulties would be largely modified, while if Japan were also to participate, the line, which would then be an international undertaking, would be practically neutralised, and be no longer a source of danger. His Excellency replied that he could express no opinion on these points, as they were matters on which experts should decide. As he evidently did not wish to be drawn into a conversation I thought it best to drop the matter, and I turned to other questions.

I was agreeably surprised to find M. Isvolsky much less perturbed than he had been on former occasions, and his demeanour was far different from that which he had assumed when he had previously spoken on the subject. He had raised such strong objections to the project in his conversations with the American Ambassador, and had spoken to me also in such serious tones, that I fully anticipated that he would express once more his disapprobation of the whole scheme, and request that we should not advocate the project. It is possible that he may recur to his former attitude, and that he for the moment does not wish to compromise himself in any way until he has examined and discussed the matter fully with the competent authorities. He made no mention on this last occasion of the part which China was playing, and it is just possible that he may have hopes that the Chinese Government will not accord their consent to the concession; and in that case he would naturally view the situation with calmness.

I have, &c.

A. NICOLSON

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