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

REGF18 EB 10

CHINA RAILWAYS.

CONFIDENTIAL.

[January 23.]

SECTION 1.

[2517]

Sir A. Nicolson to Sir Edward Grey.-(Received January 23.)

No. 1.

St. Petersburgh, January 23, 1910.

(No. 25.) (Telegraphic.) P.

PROJECTED railway from Chinchow to Aigun.

I saw M. Isvolsky to-day and his Excellency told me that he had spoken to the American Ambassador quite frankly about this scheme. He had pointed out to him that while any schemes for lines which would act as feeders for the Chinese Eastern Railway would be favourably considered by the Russian Government, lines which would tap that railway could not be expected to have their support. M. Isvolsky seems in a measure to be reverting to his original attitude of hostility to the Chinchow-Aigun project, which he considers would necessitate a large expenditure for the fortification of Blagovestchensk. M. Isvolsky referred once more to the fact that Japan had been consulted before Russia. I explained the position of His Majesty's Government in the matter as set forth in your telegram No. 2 of the 3rd January, but M. Isvolsky did not seem to derive much satisfaction from the explanation. He said that the concession had already been granted by Imperial edict, and that, according to the American Ambassador, His Majesty's Government had acted in this matter identically, and pari passu with the American Government To this I replied that His Majesty's Govern- inent were remaining quite passive, and I added in confidence that instructions had been sent to His Majesty's Minister at Peking to wait until the wishes and views of Russia were known before taking any steps. His Majesty's Government, I said, always kept carefully in mind, and had always kept carefully in mind, the interests and wishes of Russia, and their action in this matter was perfectly loyal to the Russian Government. To my observation that it was impossible for us to restrict the action of our financiers, M. Isvolsky replied that it was possible for us to be induced to afford them our support. To this I replied that, so far, we had not done so, and that, if necessary, we could be obstinate.

M. Isvolsky's attitude on the question was a little troublesome, and I gathered that his tone towards the Americau Ambassador had been somewhat testy.

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