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force in this contention, and, without admitting that the 1899 agreement was conclusive, I had promised to suspend action at Peking until I knew the Russian views.

The United States Ambassador pointed out to me that it was hardly for us or the United States to say that it was impossible for China to construct a railway in her own territory without first consulting Russia and Japan.

I explained to him that the words to which he referred had not been intended by me to raise any question of right apart from any special treaties which there might be between China and Russia or Japan, but had been meant to convey to the Chinese Government that, if they pressed forward the Chinchow-Aigun Railway without any regard to Russian or Japanese interests, they would certainly meet with opposition from Russia and Japan, and they could not expect our support against that opposition.

The Ambassador thanked me for what I had told him about the 1899 agreement, and said he had no doubt that this would explain the situation at Washington.

Finally, the Ambassador asked me what our attitude was at the present time, and whether we were still favourable to the project.

I replied that we were quite favourable to the line in principle, but we could not take action in support of it until the Japanese and Russian interests had been

any taken into consideration.

I am, &c.

E. GREY.

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

[B]

CHINA RAILWAYS.

CONFIDENTIAL.

[5384]

Sir,

No. 1.

Foreign Office to Messrs. Pauling and Co.

6486

[Februak (P9.]

KEGY 4 MAR 10 SECTION T

Foreign Office, February 19, 1910. I AM directed by Secretary Sir Edward Grey to acknowledge the receipt of your letter of the 14th instant regarding the Chenchow-Aigun Railway.

The position of His Majesty's Government in regard to this matter has been explained to Mr. Percy Browne in the course of the visits which he pays to this department on your behalf.

He has been informed that since the original scheme for a railway from Chenchow to Taonan-fu was extended, first to reach Tsitsihar and subsequently Aigun, the Russian Government have intimated to His Majesty's Government and the Chinese Govern- ment that they as well as the Japanese Government are interested in the question. This contention cannot but he regarded as reasonable, and the matter is therefore in the first place one for arrangement between the Governments of Russia, Japan, and China, and His Majesty's Government, in asking the Japanese Government to define their demands for participation, have already exercised their good offices as far as they consider it desirable for the present.

Your assertions that the action of His Majesty's Government is tantamount to disowning Messrs. Pauling as a British firm, and that they are unfavourable to the construction of the railway, are unjustifiable and devoid of foundation, but until they receive official information that an agreement has been reached between the Govern- ments concerned, they do not see their way to take any further action in the matter.

I am to add that His Majesty's Government are unable to give any indication of their attitude in the event (contemplated in the final paragraph of your letter) of the participation demanded by either the Russian or Japanese Governments being considered excessive and unreasonable. This, again, would appear to be a matter, in the first instance, for the Chinese Government to decide,

am,

&c.

F. A. CAMPBELL.

[2831 -1]

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