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Parliament having a voice in the reorganisation of their railway contracts? If this contract is permitted to go through without reference to the Chinese Parliament, and the terms are extended to all the other contracts, and the people are saddled with an additional burden of 100,000,000 dollars as a consequence, will it not precipitate another revolution, and will it not react disadvantageously upon all Americans in China? Will not the Chinese people have good reason to say that America has again betrayed their interests, and will they not again resent this breach of faith as they did in the matter of the Canton-Hankow concession, where we permitted the control to pass into the hands of the Belgians? Is the State Department willing at this time to permit this situation to continue, which can only result in disastrous consequences to American prestige in China? Are we at this critical time willing to permit this situation to develop into a festering sore until China becomes inflamed at our lack of consideration, or indifference to their vital interests, and the progressive masses of China turn from us as they did, for cause, in 1905 ?
For this reason I contend that the matter is one in which the State Department must bestir itself and take the initiative, and not leave the solution to the corporation whose activities have created this unfortunate situation. The prestige of every American in China hinges on the attitude of the Government in this matter.
I am sure that if the State Department will take action, and at once, the patriotism of our bankers will rise to the occasion, and a way will be found to guarantee an annual amount to assist our Allies at this time, and so stabilise the situation, while preserving iutact our traditional policy in Chine, and demonstrating the friendly interest of our Government in China's complex problems.
If the Secretary of State will even unofficially signify his approval of the principle underlying the suggestion of co-operation as a solution, the way can be found to take the matter up with the leading bankers of the country, and ascertain their views as to the amount of profit required for their share in negotiating the bonds.
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GEO. BRONSON REA,
[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[182554]
153
[September 19.)
SECTION 1.
No. 1.
Sir C. Greene to Mr. Balfour.-(Received September 19.)
(No. 500.) Sic,
Tokyo, August 17, 1917. WITH reference to my despatch No. 426 of the 3rd July, I have the honour to inform you that in the "Official Gazette" of the 31st ultimo was published a series of Imperial ordinances, issued with the object of giving effect to the unification of the South Manchuria and Corea Ralways and the reform of the Japanese administrative system in Manchuria. The principal features of these ordinances, of which a summary is enclosed, are as follows:-
1. A Colonial Boreau, with a director at its head, is established under the Prime Minister's supervision to have charge of business other than that concerned with foreign affairs relative to Coren, Formosa, Japanese Saghalieu, Kwantung Province, and also the South Manchuria Railway Company A Colonial Investigation Committee under the Prime Minister's superintendence is also formed to advise on colonial matters.
As a consequence of the above, the functions of the Minister for Foreign Affairs with respect to Kwantung Province, previously under his control, are limited to the direction and supervision of the Governor-General of Kwantung in regard to matters relating to foreign affairs, and the control of matters relating to Corea, Formosa, and Japanese Saghalien passes from the hands of the Minister of the Interior to those of the Prime Minister.
2. The army officer commanding the gendarmerie in South Manchuria and officers of gendarmerie may be specially appointed superintendent-general and superintendents of the Kwantung Government-General Police, and non-commissioned o.licers of gendarmerie may be appointed sergeants of the Kwantung police.
3. Consuls and vice-consuls in Manchuria may be appointed from among high executive officials of the Kwantung Government-General of not less than two years' service, or from among persons of adequate attainments and experience who have engaged for not less than five years in business in Manchuria.
4. The president and vice-president of the South Manchuria Railway Company are replaced by one chief director, who is subject to the presiding control of the Governor- General of Kwantung, who previously exercised a purely nominal supervision over the com any. The Governor-General of Corea is empowered to delegate to the South Manchuria Railway Company the construction, transportation, and other incidental business of the Corean railways.
on the
Consequent upon the issue of these ordinances, which came into operation 1st iustint, the following appointments were gazetted on that day in the Official Gazette":-
In place of General Baron S. Nakamura, hitherto Governor-General of Kwantung, who becomes a member of the Military Council, Lieutenant-General Biron Yujiro Nakamura, hitherto president of the South Manchuria Railway Company, is appointed Governor-General o Kwantung, and to that end is specially replaced on the active list, a ce-sary qualification for colonial governors. The title totoku (cust marily rendered "governor-general" in this connection) is retained. In its original use it means rather a military commander, and is not the term employed for the Governor-General of Corea, Formosa, or Canada (sotuku).
Mr. T. Shirani, who for the past nine years has been Director of the Civil Administration in Kwantung, is app inted Director of the new Colonial Bureau. Baron Goto, Minister of the luterior, is named chairman of the Colonial Investigation Commitree, and eighteen members are nominated, including the Director of the Commercial Burean in the Foreign Office.
Major-General C. Kumabe, who commands the gendarmerie in South Manchuria,
is appointed superustendent-general of the Kwantung police.
Mr. S. Konizawa, hitherto vice-president of the South Manchuria Railway Company, is appointed director of that company.
[2736 t-i]
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