2

times been suggested by Japan and Russia, we might perhaps use our influence with these Powers to arrange some settlement of the Chinchow-Aigun project, but Mr. Straight, I understand, will have no half measures. According to the Russian Minister here, when M. Isvolsky pointed out to Mr. Straight the difficulty there would be in carrying the proposed line across the Russian railway, the latter retorted that a tunnel or an overhead railway would serve the purpose. Language like this does not naturally tend to disarin opposition,

The Chinchow-Aigun project has, however, been quiescent for some time past, and the Americans are now engaged in pressing other schemes in which their interests are practically identical with our own. Mr. Calhoun is still somewhat lukewarm about the Hukuang Railway loan, but he has at least assisted by his presence at an interview for pressing the question upon the attention of the Wai-wu Pu.

In their negotiations for the currency loan of 10,000,000l. the Americans know that they have our cordial sympathy, and except for some isolated and ill-timed incursions of American missionaries into the opium question, there are fortunately no longer any grounds for conflict between American and British policy in China.

I am glad to note a distinct improvement in this respect during the last few months, and it will be my earnest endeavour to do what I can to maintain it, although we must always, I fear, he prepared for our policy in China being viewed with unreasonable suspicion both by China and America. This is one of the penalties which we have to pay for the political advantages which we reap from our alliance with Japan.

I have, &c.

J. N. JORDAN,

P.S. Since writing the above I have read Mr. Max Müller's despatch No. 388 of the 28th October last, which illustrates, very fully, American political methods in China. The views expressed in that despatch are in entire accord with my own experience.

J. N. J.

1911

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