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[This Document is the Property of His Britannic Majesty Covernment,]

27093

595

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CHINA RAILWAYS.

CONFIDENTIAL.

[27461]

No. 1.

RECP Roof 1 SEP 10;

July 22.]

SECTION 1.

Minute by Sir F. Campbell respecting the Chinchow-Aigun Railway.

THE American Ambassador said his Government were being pressed to ascertain whether His Majesty's Government would support British capitalists, as the United States Government would support American capitalists if the project were confined to the building of a line from Chinchow to Taonan-fu only. He admitted that such a line would only be constructed with a view to its extension later on.

I pointed out that the question was where it would be extended to, and that I thought it would hardly be a friendly proceeding towards the Japanese to support Messrs. Pauling in the matter without knowing this, and consulting them as to whether such a scheme would be injurious to the South Manchurian line.

We might ask the Japanese whether they see any objection to a line being constructed to Taonan-fu only with a view to its extension later on if opportunity offered.

A sketch-map of the country is attached to Paper 32672, on which Sir E. Grey observed that the Japanese should not object to this line, or they would put themselves in the wrong. But I do not think it would be a fair proceeding on our part to give support to the line to Taonan-fu, and tell the Americans that we will do so, without saying anything to the Japanese, when we know that it is not intended that the line should stop at Taonan-fu.

Perhaps the first thing to do would be to tell the American Ambassador that although we should certainly support a line to Taonau-fu, we cannot do so knowing that its prolongation is intended without consulting the Japanese, and ask for information as to where it is to be extended to.

Foreign Office, July 22, 1910.

[2813 y-1]

F. A. C.

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