2
writer points out that the surrender of the Manchurian Railway means the surrender of Manchuria, which Japan, while admitting China's sovereignty, requires as a field for emigration, and the development of which, ineffective unless Japan-directed, is for her a necessary guarantee of future peace. The press has been quick to point out, as with one voice, that if the neutralisation principle is to apply in Manchuria, it must be applicable to foreign railways throughout the Chinese Empire-to Gernian lines in Shantung, to French in Yunnan, to English elsewhere; and both Japan and Russia must be admitted on equal terms to join in the Hankow line, in which four Powers are now concerned.
The "Kokumin," generally pro-Government, and supposed sometimes to reflect Marquis Katsura's views, writes in its English column as follows:--
'Japan will deal with the neutralisation proposal in a friendly manner, as it comes from a friendly country, no matter whether Japan consents thereto or not.. The argument that the neutralisation scheme will guarantee the peace does not apply to Mauchuria, in view of the fact that it infringes China's territorial right already established and deprives others of the privileges properly acquired there. It will lead to further complications. Russia's loss of the Chinese Eastern Railway will threaten her Siberian territory. It is also improper now to neutralise part of China's territory, in view of the fact that China may recover the railways in Manchuria upon the expiry of the concession. The Americo-Japan Agreement of 1908 is based upon the mainte- nance of China's independence and territorial integrity and the preservation of the common interests of the Powers in China. If the Japanese and American Governments always stick to this determination there will be no trouble at any time. It is unneces- sary so seriously to discuss the American proposal, as it is absolutely impracticable. It depends upon the consent of China, Japan, and Russia, but they will not consent. Russia's maintenance of the Chinese Eastern Railway, even at an enormous cost, is to preserve the basis of her Oriental policy. If China is now to bear a big loan to recover the Manchurian Railway her finances will be imperilled at once. The proposed railway neutralisation will be better applied to China proper than in Manchuria; but will France and Germany, among other Powers, easily abandon their railways in Yünnan and Shantung ? "
Such, generally speaking, are the views which the first announcement of the inter- nationalisation scheme has elicited from the Japanese press. With each day's utterances disapproval has so far tended to grow rather than to diminish.
British Embassy, Tokyo,
January 11, 1910,
C258 4810
[This Document is the Property of His Britannic Majesty's Government."
[B]
CHINA RAILWAYS.
CONFIDENTIAL.
[1696]
No. 1.
Sir Edward Grey to Count Metternich.
REC
REG 18 FEB 10)
[February 2.]
SECTION 1.
Your Excellency,
WITH reference to the memorandum communicated by the German Embassy on
Foreign Office, February 2, 1910. the 30th November last relative to the Hakuan Loan negotiations, I have the honour to inform your Excellency that I have now been informed by the French Embassy that the proposed division of the Szechuan Railway (Hankow-chang) into four equal parts among the four groups is not unacceptable to the French Government, provided that the principle of equality between the French and British groups be extended to the Hankow-Canton Railway by the appointment of a French sub-engineer, and that, in the event of China granting the concession for the extension beyond Ichang, the French group receive, as compensation for the section they are giving up to the American group, the fourth or most westerly section of the Hankow-Szechuau line, which was allotted to the British group by the agreement of the 14th May last, made at Berlin, and subsequently ratified in London.
group
I have informed the French Government, in reply, that, while noting with satisfaction their acceptance of the proposal in regard to the division of the Szechuan line, I see no reason for departing from the understanding arrived at last spring in regard to the two points above alluded to, since the inclusion of the American involves equal sacrifices on the Szechuan line for all three groups, and cannot therefore be held to affect the distribution of engineering sections on either line in the manner suggested by the French Government. I added that, in the opinion of His Majesty's Government, the reopening of these questions was to be greatly depre- cated as tending to the conclusion that there was to be no finality in any of these negotiations.
I have, &c.
[2631 6-1]
E. GREY.
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