CO129-363 - Public Offices & Others - 1909 — Page 312

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

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As to Vladivostock, he was pleased to find that the abolition of the porto franco had in no wise increased the cost of living, and that one or two factories or mills were being erected. German competition was lessening, and there was confidence expressed that there were great openings for Russian trade. There was a cheerful and healthy feeling among all the Russian residents, and except among a "few free traders," there was a general satisfaction that the porto franco had been abolished. He had not had time to visit personally the Amur railway works, but the engineer-in-chief and some of the railway officials had waited upon him. The engineer-in-chief said that the two great difficulties with which he had to contend were "alcohol" and "gold." The railway works had turned up the auriferous soil, and there had been some remarkable finds of gold, and without the slightest trouble on the part of the explorer handsome profits had been made. The railway constructors had employed some 6,000 Russian workmen, but the gold fever had seized them, and some 3,500 had already deserted, In four or five days men had found gold to the value of 401. or 50%., and this was an irresistible temptation to Russian peasants. The results were that there was a shortage of labour, and the works were consequently greatly delayed. M. Kokowtsoff was of opinion that the only solution would be to have recourse to Chinese and Corean labour. He regretted this, as he would have preferred if possible to have constructed the railway exclusively by Russian labour. The Chinese were carrying on an active contraband trade in spirits, and vodka or its substitutes were being sold at ridiculously low prices. To peasants who had a traditional tendency to that enjoyment, and who were well supplied with money, the temptation was too strong, and the results were deplorable. Apparently, the reports which he had received as to the Amur railway were the only points which had not been entirely satisfactory during his tour. should imagine that M. Kokowtsoff, during a hasty visit, had received highly-coloured information as to the prosperity and well-being of Russian interests in the regions which he traversed. He is naturally of a sanguine temperament, and no doubt his numerous visitors wished to send away their Minister in a happy and contented frame of mind. It is probable that he intends to adopt an obdurate attitude in respect to the Harbin question, and I shall be curious to have a fuller conversation with him later on the subject. I did not attempt to discuss the matter with him yesterday, as I did not wish to interrupt his flow of conversation. Whether sincerely or not, he assumes an air of complete satisfaction with respect to the abolition of the porto franco of Vladivostock. There were several points on which I should have liked to have questioned him, but as I had been with him an hour, I did not wish to further occupy the time of a busy Minister. He mentioned casually to me that the late Frince Ito had stated that he had come to Harbin merely to have an opportunity of making the acquaintance of a Russian statesman of whom he had heard so much, and to convey to him an invitation to visit Japan, where he would meet with a friendly and honour- able reception. Their conversation had only lasted twenty minutes when the fatal attack on Prince Ito was made.

I

CHINA RAILWAYS.

CONFIDENTIAL.

[34845]

(No. 154.) (Telegraphic.) P.

HUKUANG loan.

17th September.

No. 1.

Sir Edward Grey to Sir J. Jordan.

RE

[September18176 091

311

SECTION 1.

Foreign Office, September 18, 1909. Please refer to Mr. Bryce's telegram No. 112 of the

Any representations to the Chinese Government in favour of our proposal as to engineers appear useless if the German group are determined to reject it.

Please let me know if you think some other basis for discussion might be arranged. I would suggest that we confine our efforts to an arrangement between the three Powers as to the Hankow-Canton and Hankow-Ichang sections, and that for the moment we leave the extension beyond Ichang out of consideration.

[2413 s -1]

I have, &c.

A. NICOLSON,