423

2

On their refusing this, we wrote again, the 14th February, to say that if the American group were of opinion that they were being unfairly treated in the proposed division, we, the Chinese Central Railways (Limited), would change places with them and take the 200 kilom. of sub-engineer, plus 400 of the extension, giving them 600 kilom. with chief engineer out of the extension. This in turn has been refused by their letter of the 17th February.

February 18, 1910.

G. JAMIESON.

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

CHINA RAILWAYS.

CONFIDENTIAL.

[5935]

No. 1.

Pac?

Rec 18 MAR 10. [February 20

SECTION 1.

Sir A. Nicolson to Sir Edward Grey,-(Received February 20.) (No. 63. Confidential.) (Telegraphic.) P.

St. Petersburgh, February 20, 1910.

PROPOSED railway from Chinchow to Aigun. I received a visit to-day from the Minister of Finance, who spoke strongly against the above scheme. M. Kokovtsoff said that his Government would probably put forward a proposal that the Chinese Government, in lieu of granting a concession for the Chinchow-Aigun Railway, should grant one for a railway from Kalgan to Kiakhta by way of Urga. The Russian Government would be quite ready to participate in the latter scheme. To my enquiry as to whether this idea was favoured by the Russian Government as a whole, M. Kokovtsoff replied that his views were shared by M. Isvolsky, and that he had every hope that the Council of Ministers, to whom the proposal would shortly be submitted, would be of the same opinion.

His Excellency did not deny that China was acting within her rights in granting the Aigun concession, but he pointed out that if she insisted on granting the con- cession, the Russian positions on the Amur would have to be strengthened, and a change would be brought about in Russia's attitude towards the Chinese Government. I asked M. Kokovtsoff whether, in his opinion, the construction of the Aigun line was as strongly opposed by the Japanese as it was by his own Government. He said that he did not think so, and remarked that the proposed line would affect Russian interests much more gravely than Japanese. Great stress was laid by M. Kokovtsoff on the strategical considerations involved.

I expect that M. Kokovtsoff is well aware of the action recently taken by Japan with regard to the conditions of her participation in the scheme, but I did not mention it, as I understand that the information given to me on this point is of a confidential

nature.

[2631 u-

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