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

CHINA RAILWAYS.

CONFIDENTIAL.

[December 214

SECTION 4

346

5654

REG 24 TEB 10)

[46382]

No. 1.

Sir C. MacDonald to Sir Edward Grey.-(Received December 21.)

(No. 75. Very Confidential.)

(Telegraphic.) P.

Tokyo, December 21, 1909.

INTERNATIONALISATION of railways in Manchuria. Please refer to my telegram No. 74 of the 20th December last. Yesterday evening United States Ambassador spoke to me on the subject of this proposal, which he informed me he had sent to Count Komura that afternoon by instructions from his Government.

Mr. O'Brien said that as participation in the Aigun-Chinchow Railway was desired by the Japanese Government, and as financing and construction of railways in other parts of China were being shared in by other Powers, the United States Government thought that this arrangement could with advantage be extended to the Manchurian railways also. He had more than once in conversation with Minister for Foreign Affairs put forward the suggestion that as Japan was in want of money she might with advantage sell her rights in the Manchurian railway. I said that I did not think proposal would be favourably received by the Japanese Government, to whom railways in China meant more than money.

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