28
[This Document is the Property of His Britannic Majesty's Government.]
[B]
AFFAIRS OF CHINA,
CONFIDENTIAL.
[46757]
No. 1.
[December 28.]
SECTION 4.
Sir J. Jordan to Sir Edward Grey,~-~~(Received December 28.)
No. 454. Confidential.) Sir,
Peking, December 8, 1909, IN continuation of my despatch No. 446 of the 2nd instant, I have the honour to transmit to you herewith copy of a further despatch from the acting consul-general at Mukden, which contains some interesting observations on the working of the Chinese Eastern Railway, the status of foreign merchants in the railway areas along the line, and the efforts which British and German firms, acting in conjunction with Chinese official syndicates, are making to wrest the monopoly of the bean trade from the Japanese. Five large British firms are actively interested in this business, which is already giving an unexpected importance to the international position in Manchuria.
Mr. Willis, it will be seen, confirms the general impression that the object of Prince Ito's visit was to come to some arrangement with the Russians as to the status of the railway settlements. The Japanese have always encouraged the Russians in their opposition to any compromise on that question, and have viewed the agreement of May last with little favour.
Any understanding between Russia and Japan with regard to railways, or the administration of railway settlements in Manchuria, is not likely to promote the interests of foreign trade, and it would, I think, be better for us to accept a reasonable solution of the Harbin question at the hands of Russia than to force her, by an uncompromising attitude, into making a bargain with Japan. China is not likely to give much assistance in the matter, as her policy in questions of this kind has little constructive aim so long as she can keep the Powers engaged in a dispute amongst themselves.
I have, &c.
[
Inclosure in No. 1.
J. N. JORDAN,
(No. 59. Confidential.) Sir,
Consul-General Willis to Sir J. Jordan.
Mukden, November 24, 1909, IN continuation of my immediately preceding despatch No. 58 of the 23rd instant on the present commercial conditions prevailing in Northern Manclturia, I have the honour to submit the following observations.
I was unable to procure detailed information as to the revenue and expenditure of the Chinese Eastern Railway, but the Russian authorities assured me, and their testimony was corroborated by M. Dard, the manager of the Russo-Chinese Bank, that during the past year a great improvement had taken place, and that now, exclusive of the cost of the railway guards, which is put at 15,000,000 roubles annually, the railway had come to be self-supporting. As these guards, 28,000 in number, form an integral part of the Russian army, the railway officials maintain that, if the railway is to be conducted on commercial lines, it is only reasonable that the expense of their maintenance should not be included in the railway budget. General Horwath evidently thought that it was possible under present conditions to inake an economic success of the enterprise, even, owing to the development of the bean trade, of the Chang Ch'un--Harbin branch; but although he told me he was ready to grant British merchants every facility, and had already agreed to a through rate from stations on the Chang Ch'in line to Vladivostock. he said that he would not lease land to foreign merchants in the railway areas at stations along the line
[2348 cen ·1]
No comments yet.
Private notes are available after approval.