CO129-326 - Foreign Office - 1904 — Page 261

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All AI Reviewed

The New York Sun, 23 May 1904

RUSSIA CANNOT GET CONTROL

IMPORTANT ACTION TAKEN BY THIS GOVERNMENT.

It Recognizes the American-China Development Company, Which Is Constructing the Canton-Hankow Railroad, as a Bona Fide American Company.

WASHINGTON, May 22.--The great importance of the action of the United States Government in recognizing the American-China Development Company as a bona fide American concern, notwithstanding the fact that a majority of the stockholders are Belgians, is shown in the text of a part of the correspondence between the State Department and the Chinese Minister, just made public.

For nearly a month the Chinese Minister has been assisted in his efforts by a special commissioner from China, John F. Ferguson, grand secretary of the Imperial Chinese Railway administration of that country. Mr. Ferguson's discussion on the subject with Secretary Hay showed that China has feared for some time that Russia might acquire control of the American-China Development Company through either Belgian or French capitalists, and thus secure the proposed railway north from Canton and through the Yangtse Valley to Hankow.

It became highly important to know if the United States would maintain the exclusive right to deal with all diplomatic matters affecting the interests of the company, and now that such an assurance has been obtained the Chinese officials feel that the United States will be one of its strongest protectors should the dismemberment of China be proposed.

The company which became the subject of such an important step on the part of this Government is the old Calvin Brice syndicate, which obtained from the Chinese Government a concession for the construction of a railway from Canton to Hankow, a distance of about 900 miles north in the direction of Pekin. After the death of Senator Brice, and before a supplementary contract had been signed, the affairs of the syndicate became somewhat disorganized and much of the stock changed hands, and when the American company was organized to begin the work of construction it was found that a large part of the stock was in the hands of Belgians.

The company was organized and chartered under the laws of New Jersey, and its first president was William Barclay Parsons, now a member of the Isthmian Canal Commission, who had first surveyed the line from Canton to Hankow for the original syndicate. Already nearly fifty miles of the railway has been constructed, and it is thought that it will be completed within three or four years.

It was explained to-night by persons connected with the recent movement in China that all foreign companies operating in China are not subject to Chinese law, but to the law of their own countries, and as the present condition of affairs in China is more or less affected by the general situation in the East, the Chinese Government has been desirous of finding out the exact standing of the American company and which Government would be its protector in case trouble should arise.

The cause of China's fear lest Russian interests should obtain a footing in the Canton-Hankow Railway Company was shown by reference to the map of China. At the present time no less than four great Powers are interested in Chinese railways. The railroad from Yingkow to Pekin is owned by a British company, but Russia has been negotiating for some time to secure a concession that would permit her to enter Pekin. Already Belgian and French interests own a concession from Pekin south to Hankow, and should Russia get to Pekin she would then be certain of a line as far south as Hankow.

President Roosevelt took personal interest in the situation and requested a detailed memorandum from the Chinese Minister, giving all the facts connected with the American company's interests. He laid this before his Cabinet advisers. Secretary Hay freely acknowledged that there was no precedent in the State Department for taking the action proposed. It was, therefore, referred to Attorney-General Knox for a legal opinion as to the status of the American company. The questions submitted by the Chinese Minister were as follows:

First--Is the American-China Development Company considered by the United States Government to be a bona fide American company?

Second--If the United States Government will maintain the sole right to deal with all diplomatic matters affecting the interests of this company.

Third--If the United States Government will take steps to make public its position concerning the Canton-Hankow Railway and its intention to protect the railway's interests?

To these questions Secretary Hay replied:

First--The United States Government considers the American-China Company to be in good faith an American company.

Second--The United States considers that as the company is at present organized and conducted, this Government alone has the right to deal with all diplomatic questions affecting the interests of the company.

Third--The United States will make public its position concerning the Canton-Hankow railway and its intention to interpose its good offices on all proper occasions in the interests of that railway.

From the American company's standpoint, and the failure of the United States to at once declare its sole right to deal with all matters affecting the railway, would have left the way open for the further advance of Russia into China. The action of the United States is considered by China, therefore, as another barrier in the way of Russian influence over Chinese territory. It is admitted by Government officers that they cannot foretell what attitude the United States would assume in case the Belgian stockholders should dispose of their holdings to Russian or French interests, and it is pointed out that Secretary Hay has been careful to provide that the action of this Government is based on the present organization of the company.

C.O. 12902

258

14 JUN 04

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The New York Sun, 23 May 1904 RUSSIA CANNOT GET CONTROL IMPORTANT ACTION TAKEN BY THIS GOVERNMENT. It Recognizes the American-China Development Company, Which Is Constructing the Canton-Hankow Railroad, as a Bona Fide American Company. WASHINGTON, May 22.--The great importance of the action of the United States Government in recognizing the American-China Development Company as a bona fide American concern, notwithstanding the fact that a majority of the stockholders are Belgians, is shown in the text of a part of the correspondence between the State Department and the Chinese Minister, just made public. For nearly a month the Chinese Minister has been assisted in his efforts by a special commissioner from China, John F. Ferguson, grand secretary of the Imperial Chinese Railway administration of that country. Mr. Ferguson's discussion on the subject with Secretary Hay showed that China has feared for some time that Russia might acquire control of the American-China Development Company through either Belgian or French capitalists, and thus secure the proposed railway north from Canton and through the Yangtse Valley to Hankow. It became highly important to know if the United States would maintain the exclusive right to deal with all diplomatic matters affecting the interests of the company, and now that such an assurance has been obtained the Chinese officials feel that the United States will be one of its strongest protectors should the dismemberment of China be proposed. The company which became the subject of such an important step on the part of this Government is the old Calvin Brice syndicate, which obtained from the Chinese Government a concession for the construction of a railway from Canton to Hankow, a distance of about 900 miles north in the direction of Pekin. After the death of Senator Brice, and before a supplementary contract had been signed, the affairs of the syndicate became somewhat disorganized and much of the stock changed hands, and when the American company was organized to begin the work of construction it was found that a large part of the stock was in the hands of Belgians. The company was organized and chartered under the laws of New Jersey, and its first president was William Barclay Parsons, now a member of the Isthmian Canal Commission, who had first surveyed the line from Canton to Hankow for the original syndicate. Already nearly fifty miles of the railway has been constructed, and it is thought that it will be completed within three or four years. It was explained to-night by persons connected with the recent movement in China that all foreign companies operating in China are not subject to Chinese law, but to the law of their own countries, and as the present condition of affairs in China is more or less affected by the general situation in the East, the Chinese Government has been desirous of finding out the exact standing of the American company and which Government would be its protector in case trouble should arise. The cause of China's fear lest Russian interests should obtain a footing in the Canton-Hankow Railway Company was shown by reference to the map of China. At the present time no less than four great Powers are interested in Chinese railways. The railroad from Yingkow to Pekin is owned by a British company, but Russia has been negotiating for some time to secure a concession that would permit her to enter Pekin. Already Belgian and French interests own a concession from Pekin south to Hankow, and should Russia get to Pekin she would then be certain of a line as far south as Hankow. President Roosevelt took personal interest in the situation and requested a detailed memorandum from the Chinese Minister, giving all the facts connected with the American company's interests. He laid this before his Cabinet advisers. Secretary Hay freely acknowledged that there was no precedent in the State Department for taking the action proposed. It was, therefore, referred to Attorney-General Knox for a legal opinion as to the status of the American company. The questions submitted by the Chinese Minister were as follows: First--Is the American-China Development Company considered by the United States Government to be a bona fide American company? Second--If the United States Government will maintain the sole right to deal with all diplomatic matters affecting the interests of this company. Third--If the United States Government will take steps to make public its position concerning the Canton-Hankow Railway and its intention to protect the railway's interests? To these questions Secretary Hay replied: First--The United States Government considers the American-China Company to be in good faith an American company. Second--The United States considers that as the company is at present organized and conducted, this Government alone has the right to deal with all diplomatic questions affecting the interests of the company. Third--The United States will make public its position concerning the Canton-Hankow railway and its intention to interpose its good offices on all proper occasions in the interests of that railway. From the American company's standpoint, and the failure of the United States to at once declare its sole right to deal with all matters affecting the railway, would have left the way open for the further advance of Russia into China. The action of the United States is considered by China, therefore, as another barrier in the way of Russian influence over Chinese territory. It is admitted by Government officers that they cannot foretell what attitude the United States would assume in case the Belgian stockholders should dispose of their holdings to Russian or French interests, and it is pointed out that Secretary Hay has been careful to provide that the action of this Government is based on the present organization of the company. C.O. 12902 258 14 JUN 04

Baseline (Original)

From The Extract New York Sun 232 May of... RUSSIA CANNOT GET CONTROL IMPORTANT ACTION TAKEN BY THIS GOVERNMENT. It Recognizes the American-China Develop ment Company, Which Is Constructing the Canton-Hankow Railroad, le Bo In Good Falth an Amertean Company. WASHINGTON. May 22.--The great im- portance of the action of the United States Government in recognizing the American- China Development Company as a bona fide American concern, notwithstanding the fact that a majority of the stockholders are Belgians, is shown in the text of a part of the correspondence between the State Department and the Chinese Minister, just made public. of For nearly a month the Chinese Minis- ter has been assisted in his efforts by a special commissioner from China, John F. Ferguson, graud secretary of the Imperial Chinese Raliway administration of that country. Mr. Ferguson's discussion the subject with Secretary Hay showed that China has feared for some time that Russia might acquire control of the Amer- ican-China Developinent Company through either Belgian or French capitalists, and thus secure the proposed railway north from Canton and through the Yangtse Valley to Hankow., It became highly important to know if the United States would maintain the exclusive right to deal with all diplomatic matters affecting the interests of the com- pany, and now that such an assurancs has been obtained the Chinese officials feel that the United States will be one of its strongest protectors should the dismemberment of China be proposed. 1904 C.0. 20902 PECT 258 14 JUN 04! The company which became the subject ] of such an important step on the part of this Government is the old Calvin Brice syndicate, which obtained from the Chinese Government a concession for the con- struction of a railway from Canton to Hankow, a distance of about 900 miles north in the direction of Pekin. After the death of Senator Brice, and before a supplemen- tary contract had been signed, the affairs of the syndicate became somewhat disor- ganized and much of the stock changed hands, and when the American company was organized to begin the work of con- struction it was found that a large part of the stock was in the hands of Belgians. The company was organized and char- tered under the laws of New Jersey, and its first president was William Barclay Parsons, now a member of the Isthmian Canal Com- mission. who had first surveyed the line from Canton to Hankow for the original syndicate. Already nearly fifty miles of the railway has been construxted, and it three is thought that it will be completed within ree or four years. It was explained to-night by connected with the recent by persons movement China that all foreign companies mont by ing in China are not subject to Chinese operat- law, but to the law of their own countries, China is more or less affected by the general and as the present condition of affairs in situation in the East, the Chinese Govern- ment has been desirious of finding out the exact standing of the American com- pany and which Government would be its protector in case trouble should arise. The cause of China's fear lest Russian interests should obtain a footing in the Canton-Hankow Railway Company was shown by reference to the map of China. At the present time no less than four great Powers are interested in Chinese railways. The railroad from Yingkow to Pekin le owned by a British company, but Rusein has been negotiating for some time to secure a concession that would permit her to enter Pekin. Already Belgian and French intrests own a concession from Pekin sonth to Hackow, and should Russia get t to Pekin she would then be certain of a south as Hankow President Roosevelt took personal line as far soon south to Canton and the a interest in the situation and requested a detailed memorandum from the Chinese Minister, giving all the facts connected with the American company's interests He laid this before his Cabinet adviser Secretary Hay freely acknowledged tha there was no precedent in the State Depart ment for taking the action proposed. was, therefore, referred to Attorney-Generd Knox for a legal opinion as to the atatu of the American company. The question submitted by the Chinese Minister were a follows: B First- the American-Chips Develop- ment Company is considered by the United States Government to be a bona fide Ameri- ean company. Second-If the United States Clovernment will maintain the sole right to deal with all diplomatie matters affecting the interests of tlus company. Third-f the Euited States Government will take steps to make publie its position concerning the Canton-Hankow Railway and its intention to protect the railway's inter- ests Hay To these questions Secretary replied: First-The Lulted States Government con- siders the American-China Company to be in good faith an American company. Second The United States considers that as the company is at present organized and conducted, this Government alone has the right to dent with all diplomalio questions affeeting the interests of the company. Third The Tuited States will make public ite position concerning the Canton-Hankow railway and its intention to interpose its good offices on all proper accasions in the Interests of that railway. From can company, and the failure of the United sea the proposed line is that of the Ameri- States to at once declare its Mole right to deal with all matters affecting the railway. Powers that this Government intended sa or, in other words, to give warning to the insist upon the rights of the as an American concern, would have left company the way open for the further advance of Russia into China. The action of the United as another barrier in the way of Russian States is considered by China, therefore, intuence over Chinese territory. It is admitted by Government officers that they cannot foretell what attitude the United States wouki assume in case the Belgian stockholders should dispose of their hold- inge to Russian or French interests, and it is pointed out that Secretary Hay has been careful to provide that the action of this Government is based on the present organi- zation of the company. 0

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From The

Extract

New York Sun

232 May

of...

RUSSIA CANNOT GET CONTROL

IMPORTANT ACTION TAKEN BY THIS GOVERNMENT.

It Recognizes the American-China Develop ment Company, Which Is Constructing the Canton-Hankow Railroad, le Bo In Good Falth an Amertean Company. WASHINGTON. May 22.--The great im- portance of the action of the United States Government in recognizing the American- China Development Company as a bona fide American concern, notwithstanding the fact that a majority of the stockholders are Belgians, is shown in the text of a part of the correspondence between the State Department and the Chinese Minister, just made public.

For nearly a month the Chinese Minis- ter has been assisted in his efforts by a special commissioner from China, John F. Ferguson, graud secretary of the Imperial Chinese Raliway administration of that country. Mr. Ferguson's discussion the subject with Secretary Hay showed that China has feared for some time that Russia might acquire control of the Amer- ican-China Developinent Company through either Belgian or French capitalists, and thus secure the proposed railway north from Canton and through the Yangtse Valley to Hankow.,

It became highly important to

know if the United States would maintain the exclusive right to deal with all diplomatic matters affecting the interests of the com- pany, and now that such an assurancs has been obtained the Chinese officials feel that the United States will be one of its strongest protectors should the dismemberment of China be proposed.

1904

C.0.

20902

PECT

258

14 JUN 04!

The company which became the subject ] of such an important step on the part of this Government is the old Calvin Brice syndicate, which obtained from the Chinese Government a concession for the con- struction of a railway from Canton to Hankow, a distance of about 900 miles north in the direction of Pekin. After the death of Senator Brice, and before a supplemen- tary contract had been signed, the affairs of the syndicate became somewhat disor- ganized and much of the stock changed hands, and when the American company was organized to begin the work of con- struction it was found that a large part of the stock was in the hands of Belgians.

The company was organized and char- tered under the laws of New Jersey, and its first president was William Barclay Parsons, now a member of the Isthmian Canal Com- mission. who had first surveyed the line from Canton to Hankow for the original syndicate. Already nearly fifty miles of the railway has been construxted, and it three is thought that it will be completed within

ree or four years.

It was explained to-night by connected with the recent by persons

movement China that all foreign companies

mont by ing in China are not subject to Chinese operat- law, but to the law of their own countries, China is more or less affected by the general and as the present condition of affairs in situation in the East, the Chinese Govern- ment has been desirious of finding out the exact standing of the American com- pany and which Government would be its protector in case trouble should arise.

The cause of China's fear lest Russian interests should obtain a footing in the Canton-Hankow Railway Company was shown by reference to the map of China. At the present time no less than four great Powers are interested in Chinese railways. The railroad from Yingkow to Pekin le owned by a British company, but Rusein has been negotiating for some time to secure a concession that would permit her to enter Pekin. Already Belgian and French intrests own a concession from Pekin sonth to Hackow, and should Russia get t

to Pekin she would then be certain of a

south as Hankow

President Roosevelt took personal line as far soon south to Canton and the

interest in the situation and requested a detailed memorandum from the Chinese Minister, giving all the facts connected with the American company's interests He laid this before his Cabinet adviser Secretary Hay freely acknowledged tha there was no precedent in the State Depart ment for taking the action proposed. was, therefore, referred to Attorney-Generd Knox for a legal opinion as to the atatu of the American company. The question submitted by the Chinese Minister were a follows:

First- the American-Chips Develop- ment Company is considered by the United States Government to be a bona fide Ameri- ean company.

Second-If the United States Clovernment will maintain the sole right to deal with all diplomatie matters affecting the interests of tlus company.

Third-f the Euited States Government will take steps to make publie its position concerning the Canton-Hankow Railway and its intention to protect the railway's inter- ests

Hay

To these questions Secretary replied:

First-The Lulted States Government con- siders the American-China Company to be in good faith an American company.

Second The United States considers that as the company is at present organized and conducted, this Government alone has the right to dent with all diplomalio questions affeeting the interests of the company.

Third The Tuited States will make public ite position concerning the Canton-Hankow railway and its intention to interpose its good offices on all proper accasions in the Interests of that railway.

From

can company, and the failure of the United sea the proposed line is that of the Ameri- States to at once declare its Mole right to deal with all matters affecting the railway. Powers that this Government intended sa or, in other words, to give warning to the insist upon the rights of the as an American concern, would have left company the way open for the further advance of Russia into China. The action of the United as another barrier in the way of Russian States is considered by China, therefore, intuence over Chinese territory. It is admitted by Government officers that they cannot foretell what attitude the United States wouki assume in case the Belgian stockholders should dispose of their hold- inge to Russian or French interests, and it is pointed out that Secretary Hay has been careful to provide that the action of this Government is based on the present organi- zation of the company.

CO129-326 - Foreign Office - 1904 — Page 261

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