CO129-362 - Public Offices - 1909 — Page 598

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be commenced within a period of two years, and that the construction and improve- ment of the line should be carried out as a joint Chinese and Japanese enterprise, each Government appointing commissioners for the purpose. Hence China has every right to send her representatives to take part in the control and inspection of the operations. At the expiry of the time stipulated in the agreement, however, the Japanese Government gave no indication of any intention to resume negotiations in this matter, nor did they do so until the spring of this year. The Chinese Government, with a view to cement friendly relations between Japan and China, yielded to the former's request for the resumption of negotiations. The department of communications of the Peking Government accordingly sent officials appointed for that purpose. Subsequently the Viceroy of Manchuria communicated with the Japanese consul at Mukden, insisting upon holding to the original arrangements for building this line; but the consul further delayed matters by refusing China's request that Japan should not place military guards either on or adjacent to the line. This sum to be the reason of the long delay in the negotiations which, however, were still proceeding when, quite unexpectedly, on the 6th August, the Japanese Minister sent a communication to the Wai-wu Pu charging China with procrastination, and declaring that Japan would forthwith commence the work without Chinese co-opera- tion, On the receipt of this communication, the Wai-wu Pu forwarded to the Japanese Minister at Peking a reply, the gist of which was that, as the improvements were being made in the interests of trade and commerce, no necessity existed for the extension of the railway zone, but that China would not raise any objection if Japan wished to change the gauge and effect other improvements of an engineering character. The reply further emphasised that in the event of the gauge being changed, it must be made the same as that of the Peking-Mukden line, and that no other changes must be made other than those entailed by the necessities of engineering. This stipulation has particular reference to the suggested possibilities of a general change of route. It also stated that no extension of military control under the pretext of patrolling the railway in Manchuria would be permitted, and that the Chinese Government would furnish police or guards to protect the line. It concluded by repudiating any responsibility for the past delay. We (Chinese Government) would point out to your Excellencies that the Japanese Government resumed negotiations subsequent to the expiry of the time stipulated in the treaty for the commencement of the work; but although this was the case, we, with a view to arriving at an amicable settlement of the differences existing between Japan and ourselves, did not refuse their request. Now, however, Japan, relying upon her superior strength, suddenly takes action regardless of the terms of the treaty, and seeks to lay the blame for delay upon China. We are sure that under the pretext of developing communications and commerce, the Japanese Government desires this railway almost entirely for military purpose. It will also be remembered that the Japanese, in spite of treaty obligations, have made many other encroachments upon the rights and liberties of China.

In view of the situation brought about by the matters treated of in the foregoing, and particularly regarding the extension of Japanese military control in Manchuria, we have been compelled to lay particular emphasises on questions relating to the If Japan military protection of the railway and the constitution of the police force. had conceded these points, this matter would have been settled long ago, and she would have been under no necessity of attempting to lay the blame for any delay at the door of China. China still hopes for an amicable settlement within the terms of the treaty, and, in making this announcement to the Powers, desires simply to set forth the facts in their true light, leaving the world to judge to whom the blame attaches.

33652

[This Document is the Property of His Britannic Majesty's Government.

CHINA RAILWAYS.

TRECE

(REGE 12 OCT 09

[September 6.]

SECTION 3.

596

CONFIDENTIAL.

[33431]

No. 1.

Mr. Rumbold to Sir Edward Grey,-(Received September 6.)

(No. 240. Confidential.)

Tokyo, August 16, 1909. called at the embassy on the

He

Sir,

THE Peking correspondent of the "Jiji Shimpo 12th instant with a letter of introduction from Sir John Jordan,

In the course of conversation, the correspondent in question said that he understood that China was thinking of building a railway from Chengchow to Tsitsihar, understood, he said, that Japan would not oppose such a project, but that if she did, she would expose herself to much adverse comment from other Powers, since the proposed line would pass well to the west of Fakumen. He understood that the line had been already surveyed, but he considered that it was impracticable, for the present, as it would not pay.

The information supplied by this gentleman gave an opening for alluding to the matter in conversation with the Vice-Minister for Foreign Affairs, yesterday, without the necessity for mentioning either Sir J. Jordan's correspondence with you on the subject, or Messrs. Paulings' reported concession for the proposed line,

Mr. Ishii's language was very vague and non-committal. All he would say was that it would be premature, at present, to express any opinion as to the attitude the Japanese Government would take up in regard to a project which he characterized as only a rumour from Peking." A line, such as that under discussion, could not possibly pay, at present, and would prove very expensive. On the hypothesis that the line were ever built, he seemed to think that there would have to be some working arrangement with the Chinese by which the interests of Japan and of the South Manchurian Railway, would be safeguarded. Such an arrangement would, presumably, be in the nature of a financial compensation to the South Manchurian Railway for any loss of traffic.

It might be inferred from his Excellency's language, that Japan will allow the line to be built, provided that the South Manchurian Railway are duly compensated.

In reply to a question as to whether the Japanese Government had fixed the competitive area with reference to the South Manchurian Railway, Mr. Ishii said that this course was almost impossible. So much depended on topography, population and local trade, &c.

With regard to American participation in the recent Hankow-Canton loan, Mr. Ishii said that he thought it only natural that the United States of America, should wish to have a share in this loan. They had originally made a great mistake in allowing themselves to be bought out of the Hankow-Canton concession by the Chinese. He said that he had heard nothing about American railway activity in Manchuria, and seemed unwilling to discuss the subject. In regard to the foregoing, it is interesting to to Marquis Katsura, recall the advice recently given by Mr. Chirol of the Times Speaking of the South Manchurian Railway, Mr. Chirol said that it would be wiser for Japan to secure a definition of the limits of the competitive area by direct negotiation with China, before other foreign interest are engaged.

Otherwise, Japan may, one day, be confronted by a powerful foreign syndicate, backed by American and German capital, which would take its stand on the "open door," and put her in a very difficult position.

I am unaware of the negotiations regarding the proposed Chengchow-Taonan- Tsitsihar railway to which Lord Ffrench alluded in conversation with Sir J. Jordan, and it would be useful to this embassy to know whatever can be ascertained at Peking on the subject.

I have forwarded a copy of this despatch to his Majesty's Minister at Peking.

HORACE RUMBOLD.

I have, &c.

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