CO
329
[This Document is the Property of His Britannic Majesty's Gob65adt)
Pren
REG 24 10
[B]
CHINA RAILWAYS.
CONFIDENTIAL.
[February 10.]
SECTION 1,
[4811]
(No. 59.) Sir,
No. 1.
Sir Edward Grey to Mr. Bryce.
Foreign Office, February 10, 1910. I TOLD the United States Ambassador on the 7th instant that, while he had been absent, the Chinchow-Tsitsihar railway project had passed into a new phase. The proposal now was to build a railway from Chinchow to Aigun. I had found that the Russian Government considered that such a line would affect their interests in the north, just as the previous project would have affected Japanese interests in the south. The Russian Government said that if such a railway should pass into hostile hands their strategical position would be very much prejudiced, and they would be obliged to spend a great deal of money for defensive purposes in their own territory. I had been obliged to admit that the Russian interests in this respect were entitled to as much consideration as the Japanese interests, and I had therefore asked M. Tavolsky to let me know his views. Meanwhile, I had suspended all action with regard to the line until I should receive his views and consider them. It seemed clear to me that China could not possibly carry out the proposal for this line without entering into discussion with Russia and Japan.
The Ambassador told me that Mr. Knox still adhered to his view that the internationalisation of all the railways in Manchuria would be the best solution of this and other difficulties.
I said that we had agreed to this in principle when it was first mentioned to us, but at the same time we had advised that any project of this kind should be deferred. It now appeared that Japan and Russia would not be willing to internationalise the railways of which they had leases, seeing that the interests they had in these lines I had were the result of the expenditure of much blood and treasure on their part. not discussed the general proposal for internationalisation with Japan and Russia, but I understood that they had given their replies to the United States Government direct. I felt sure that, even if they agreed to internationalise new railways in Manchuria, they would wish to reserve those which they already leased and in which they were especially interested.
The Ambassador explained that, in Mr. Knox's view, if Russia and Japan retained control of the railways in which they were interested the policy of the "open door was a dead letter, and this was a violation of the spirit of the Treaty of Portsmouth.
""
I replied that it would certainly be a violation of the policy of the "open door if Japan or Russia were to give preferential rates to Japanese or Russian traders on railways in Manchuria; but so long as they maintained equal rates for everyone, I thought the fact of their retaining leases which they had acquired before the making of the Portsmouth Treaty could hardly be regarded as inconsistent with the general policy of the " open door,"
The Ambassador seemed to be under the impression that Russia was still claiming jurisdiction over foreigners in territory 75 miles wide and some hundreds of miles long. In reply to an observation of mine that I thought their attitude had been modified, he expressed doubt as to this being the case.
I am, &c.
E. GREY.
[2631 k-1]
wril