[This Document is the Property of His Britannic Majesty's Government.
[B]
CHINA RAILWAYS.
CONFIDENTIAL.
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15371
[April 22.]
SECTION 1.
[14952]
Dear Sir Arthur,
No. 1.
Lord ffrench to Sir A. Nicolson.-(Received April 22.)
26, Victoria Street, Westminster, April 21, 1911. I ENCLOSE a copy of a memorandum which I am sending to the Russian Foreign Office in connection with the proposed alteration of route of the Chenchow- Aigun Railway. I shall, of course, keep the embassy in St. Petersburgh informed of any developments which may take place.
Yours sincerely,
Enclosure in No. 1.
FFRENCH.
Memorandum with regard to the proposed Chinese Railways in Chili and Mongolia.
IN October 1909 Messrs. Pauling and Co., British railway contractors, entered into an agreement with the Viceroy of Manchuria, by which they undertook to construct, for the Chinese Government, a railway from Chenchow to Aigun.
This agreement was subsequently ratified by Imperial edict.
In the early part of 1910 the Russian Government addressed a despatch to the Chinese Foreign Office, emphasising the varions objections which His Imperial Majesty's Government entertained towards the Chenchow-Aigun project, at the same time suggesting that, as an alternative scheme, the Chinese Government might construct a railway from Kalgan to Urga, and thence to Kiachta.
The Chinese Government were unwilling to accept this alternative proposition, because they held that, by agreeing to it, they would admit their inability, in the future, to construct railways to the eastward of the Kalgan-Kiachta live.
Furthermore, they maintained that the route suggested served an entirely different tract of country, and would not assist them in developing the rich and more eastern portions of Mongolia.
The British contracting firm concerned felt that the Russian Government was absolutely sincere in its declaration that its objections to the Chenchow-Aigun route were in no way inspired by a desire to prevent China developing the resources of her own territory, and, therefore, that perhaps, with some alterations of route, the objections of the Russian Government night he removed.
Lord ffrench, therefore, representing Messrs. Pauling & Co., proceeded to St. Petersburgh, and, as a result of his visit and the conversations which he held with various members of the Ministry, be derived the belief that there would be no objection on the part of the Russian Government to a line going northward from Peking, and thence to Taonanfu, and from there to Ilaibin; and that, further. the Russian Government would not object to a new line from Tsitsihar to Mergun, or Aigun, provided that line was constructed of the same gauge as the Chinese eastern railways.
The British contractors, therefore, now venture to suggest that the Russian Government should either notify them, or the British Ambassador in St. Petersburgh, that there is no objection on their part to this proposed line or lines, in order that Messrs. Pauling and Co., may be enabled to commence negotiations with the Chinese Government to induce them to agree to these alterations of route.
From the knowledge Messrs. Pauling and Co. have acquired of the country thus to be traversed, and of the very favourable agricultural conditions therein, they are certain that this proposed new route, or routes, should be of the greatest possible advantage to the traffic returns of the Chinese castern railways.
Again, the building of the Peking-Harbin line would probably be commenced from Harbin and Peking simultaneously, and, therefore, a large proportion of the
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