CO129-362 - Public Offices - 1909 — Page 308

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steps were immediately taken to report the result to the Chinose Government. As the route between Mukden and Chenh-Siang-Tun remained to be discussed between the two Governments, the Imperial Government, in order to prevent an unnecessary delay, proposed to commence the work on that portion of the line east of Chenh. Siang-Tun which had been duly surveyed, leaving the Mukden Chenh-Siang-Tun section for examination and adjustment, and they announced their desire to begin purchase of the land required for the railway purposes. But China, having recourse to her well-known policy of obstruction and procrastination, evaded just and reasonable demands of Japan and raised collateral questions regarding police authority in the railway zones and the withdrawal of railway guards. The Imperial Government, appealing to the principles of justice, repeatedly urged China to accede to their deibands. Finally, on the 24th June last, China sent reply which, if concurred in, would wholly nullify provisions of the Arrangement of 1905 on the subject of An-tung Sien Mukden line, and utterly destroy the value of the railway. Disregarding the survey agreed to by the commissioners of the two Governments, that reply, beside reviving the question of police authority and railway guard, and raising other immaterial issues which would appropriately lend themselves to a separate and independent negotiation, declares that the work of improvement must be confined to the existing track, and that no broadening of the gauge can be permitted. The Imperial Government, reluctant to take measures tending to impair good relations between the two countries, have up to this time limited their action to an endeavour to induce China to reconsider her untenable position and to adopt a course consistent with the manifest intention of the parties to the engagement of 1905. Already more than one month has elapsed since the note of the 24th June last was received, and China still maintains an unyielding and unaccommodating attitude, which gives no promise of anything but vain and unprofitable negotiation. In this situation the Imperial Government are compelled to take an independent action, and without waiting for co-operation of Chinese authorities to proceed to carry out necessary works of reconstruction and improvement according to their treaty rights and in harmony with the survey of the commissioners of the two Governments.'

He then told me, confidentially, that his Government were going to intimate their intention of taking independent action to the Chinese Governinent on the 6th August. He had been instructed to give me this information confidentially beforehand, and it was also being given to the French, Russian, and United States Governments.

I said I assumed it was being given to those Governments and not to others, such as the German Government, because Japan had special arrangements with the countries of those Governments.

The Japanese Ambassador said this was the case. Of course, every one would know when the intimation had been made to the Chinese Government, but the infor- mation was being given beforehand confidentially to those Powers with whom Japan had special agreements.

I told him I was glad to be placed in possession of the facts, and asked him whether he anticipated much trouble as a result of the action which his Government proposed to take.

He said they would do the work as quietly as possible, and that they did not expect any trouble locally. The district was not thickly populated, and the people would be glad to be paid for their land.

I asked whether there was not a danger of a boycott in China. There was a Chinese press now which might take up the matter, and a boycott might originate in another part of the country,

Ho replied that he gathered this apprehension had been present to the mind of his Government. From his manner and from what he said, it seemed to me that they did not think a boycott very likely, but had come to the conclusion that they must run the risk of one, because they could not get the Chinese Government to move with regard to the railway, and it was impossible for them to deal with the matter in any other way.

I have, &c.

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