[B]

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

CHINA RAILWAYS,

CONFIDENTIAL.

[3985]

No. 1.

C O 4810

263

RECE

Rear 18 FEB 10,

[February 4.}

SECTION 1.

Sir A. Nicolson to Sir Edward Grey.—(Received February 4.)

(No. 64.) Sir,

St. Petersburgh, February 1, 1910. WITH reference to your despatch No. 2 of the 3rd ultimo, I have the honour to transmit to you herewith copy of a letter which I have received from M. Isvolsky, covering an aide-mémoire (in trauslation) defining the views of the Russian Government in regard to the Chinchow-Aigun Railway.

I have, &c.

Enclosure 1 in No. 1.

A. NICOLSON.

Mon cher Ambassadeur,

M. Isvolsky to Sir A. Nicolson.

Saint-Petersbourg, le 18 (31) janvier 1910. ME référant à la note que Sir Edward Grey a bien voulu adresser au Comte Beuckendorff le 3 janvier (N.S.) ainsi qu'à la conversation que j'ai eue avec votre Excellence concernant le Chemin de Fer Tchin-tchéou-Tsitsikar-Aigoun, je m'empresse de vous transmettre ci-joint un aide-mémoire exposant le point de vue du Gouvernement Impérial à ce sujet.

Votre sincèrement dévoué,

ISVOLSKY,

Enclosure 2 in No. 1.

Aide-Mémoire communiented to Sir A. Nicolson by M. Isvolsky.

THE Imperial Russian Government consider it their duty to express their sincere thanks for the frank exposition of the course of negotiations respecting the project of the Chinchow-Tsitsikar-Aigun Railway, contained in the note which His Britannic Majesty's Principal Secretary of State for Foreign Affairs addressed on the 3rd January of this year (N.s.) to the Russian Ambassador in London. The Imperial Government with special satisfaction learned from this note that the British Government in replying to the proposal of the Government of the United States to induce China to agree to the participation of Japan and other Powers in the construction of the line mentioned, expressed a wish to ascertain beforehand the view of the two Powers most interested in this question-Russia and Japan.

In view of this wish of the British Government, the Imperial Government first of all cannot conceal a certain doubt with reference to the correctness of the interpretation, set forth in the concluding portion of Sir E. Grey's note, of the notes exchanged between the Russian and British Governments in 1899 in their relation to the Chinchow- Aigun Railway. The British Government suppose that the agreement of 1899 has no reference whatever to this project, as in the present instance there is no question of concessions being asked in favour of British subjects, but only the financing of a Chinese enterprise. However, it can scarcely be doubted that the capital invested in this enterprise will be guaranteed sooner or later, for which purpose it will probably be necessary to establish foreign control over the management of the Chinchow-- Tsitsikar-Aigun Railway. The connection which the Government of the United States makes between the plan for this line and the "commercial neutralisation" of the Manchurian railways compels the supposition that this control will also affect the administration of the railway. Meanwhile, at the time of the conclusion of the agreement of 1899, the necessity was recognised of defining in separate notes the rights

[2631 d-1]

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