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

[B]

CHINA RAILWAYS.

CONFIDENTIAL.

REC?

8011

428

Rro 18 MAR 10. [February 28.]

SECTION 3.

[6914]

No. 1.

(No. 102.) Sir,

Sir A. Nicolson to Sir Edward Grey.~{Received February 28.)

St. Petersburgh, February 21, 1910.

I TOLD M. Isvolsky that I had had an interesting conversation with M. Kokovtsoff yesterday as to railway matters in the Far East, and that I had been struck with a project which he had in his mind as to a transmongolian railway. His Excellency asked if M. Kokovtsoff had given me a trace of the line. I said that he had in general terms, M. Isvolsky observed that he was himself the author of the idea. I inquired it I had rightly understood that the idea was to suggest to the Chinese Government to substitute what I would call the Mongolian project for the Aiguu line, and to allow the same syndicate to undertake the former scheme. His Excellency said that such was the case. The Mongolian project would be a great international line, and would much reduce the journey to Peking. Moreover, there would not be the same objections to it in the eyes of Russia as existed in regard to the Aignn line.

He did not know how the Chinese Government would regard it, nor indeed whether Japan and the United States would look favourably on it. grave doubts as to the goodwill of the latter, whose policy in the Far East was a He had puzzle to him. He had just heard from the Russian Ambassador at Washington that the American reply to his memorandum as to the Aigun concession was unsatisfactory. He had asked that a final arrangement as to a loan for the line in question should not be mude till Russia had made known her views. He understood from a telegram from Baron Rosen that the United States Government apparently intended to go ahead and not wait.

It was all very strange. He had not seen the contract, and knew nothing of the details. I asked what he would do if the United States did go ahead. replied that he must first await the reply, which he would receive soon, and if it were unsatisfactory the Russian Government must do what they could to prevent the Tsitsihar-Aigun section from being built,,and certainly prevent it from abutting on the Russian frontier. I asked if the Mongolian project would soon come before the Council of Ministers. His Excellency gave me no date, and he may wait till the American reply on the Aigun line reaches his hands.

I have, &c.

A. NICOLSON.

He

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