CO129-371 - Public Offices - 1910 — Page 197

[This Document is the Property of His Britannic Majesty's Government.j 195

CHINA RAILWAYS.

со

[January 17] 4196

CONFIDENTIAL.

SECTION 260

Pro2 11 FEB 10

:

[1753]

(No. 21.) Sir,

No. 1.

Sir A. Nicolson to Sir Edward Grey.-(Received January 17.)

St. Petersburgh, January 11, 1910.

THE Russian press has commenced to occupy itself with the American proposal for the internationalisation of the railways in Manchuria, and the reception which has been accorded to it, on first impressions, is not favourable. The press seem to have dealt chiefly with the larger question, and not as yet to have given much attention to the scheme of the Chen-chow-Aigun railway. The only detailed notice which has, as yet, been brought to my knowledge in regard to the later project is an article com- municated to the "Novoe Vremya" of this morning, and entitled "A Forgotten Document." In this article the text of Sir C. Scott's note to Count Muravieff is quoted

at length, and a hope is expressed that English diplomacy" will not allow this document to escape its recollection. Reference is also made to the undertakings of China not to accord concessious, railway or mining, without previous consultation with Russia. The journals have probably not as yet, as this is the season of Russian Christmas and new year festivities, studied the question thoroughly, and it is probable that later it will be discussed more fully in all its bearings.

In regard to the larger scheme, the "Novoe Vremya" states that there are not the slightest grounds for Russia to surrender those railways, which have been constructed by her with great efforts, and which join the heart of Russia with her outlying regions. Only those who possess an unbridled imagination could have thought of making such an astonishing proposal to Russia

The Americans take into

consideration the fact that the Eastern Chinese Railway has up to the present worked at a loss, which has to be borne by the Russian Treasury, and they think that Russia will agree to any conditions in order to avoid an annual loss of several millions of roubles. In reality the loss is not nearly so great as would appear by the balance sheet. The line bears the expenditure involved by its military protection. Furthermore, the losses incurred by the railway are explained not so much by the disadvantages of the under- taking, as by the lack of method and want of order in its administration, and by direct malpractices. The railway is awaiting the hour of a senatorial revision. The day following this revision the line will become a paying concern, and the Russian Treasury will no longer have to pay tens of millions of roubles for the privilege of including it among its numerous unsuccessful enterprises

The Manchurian Railway is a portion of the great Siberian route, and as such must remain in Russian hands until the expiration of the contract. By that time Russia will have secured communication with her outlying regious by other routes. Until then it would be a criminal act to destroy the link uniting European and Asiatic Russia. No number of millions of dollars must entice Russian statesmen, and we imagine they will not be thus tempted."

The "Bourse Gazette," a Liberal organ, characterises the American proposal as fantastic, and states that it may be taken for granted that the proposal will remain a proposal for a very long time. The paper points out that probably the Americans would provide the larger proportion of the funds and then acquire the greatest control, and this they call the neutralisation of the Manchurian railways.

The "Retch," the organ of the Cadets, while weighing the commercial and financial advantages, comes to the conclusion that Russia could not surrender what had cost her such great sacrifices to obtain.

"Our

The "Russ" (advanced Left) takes a different line, and considers that it would be well for Russia to realise the fact that the Far East is not only in space but in importance far more distant from the heart of Russia than the Near East. endeavours in the Far East would be the ruin and not the realisation of our historic problems, for the simple reason that there are no such problems in the Far East. There have been only dreams and projects of Besobrasoff, Abasa, Alexievitch, and similar companions. By accepting the American proposals we of course thereby abandon an active policy in Manchuria, but at the same time create a very real When the international syndicate com- protection for the status quo in the Far East.

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