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commit themselves to an Imperial decree, they should, in their reply to his note, formally affirm their willingness to have the line constructed with British and American assistance. Such other nations as China was willing to admit might then be invited to participate in terms of the preliminary agreement.
Liang Ta-jen said that the Chinese Government had quite decided to go on with the Chinchow-Aigun project, but that there were some details in the preliminary agreement which required to be adjusted. China would gladly welcome any scheme which would restore to her her sovereign rights over Manchurian railways, but there were so many “ifs" connected with the various proposals that he felt some difficulty in giving any definite answer about matters whose relation to each other was not altogether clear to him.
1 said that my instructions had special reference to the Chinchow-Aigun project, in which it seemed to His Majesty's Government that China might reasonably concede a certain degree of participation to Japan in order to smooth over possible difficulties and accelerate the completion of the agreement. The participation which would satisfy Japan would probably be such as China could grant without in any way impairing her sovereign rights or prejudicing her position in Manchuria.
Liang said that nothing could be decided until they knew what Japan's terms really were. The Japanese Minister had merely intimated to them that his Govern- ment desired to be consulted in the matter, but had made no reference to participation. He added that he did not see why Japan and Russia should be admitted to partici- pation in the Chinchow-Aigun line unless they were prepared to make some equivalent concessions, either by adhering to the general scheme of railway internationalisation, or by waiving some of their vested interests in Manchurian railways. It seemed to him that the acceptance or rejection of the larger scheme would depend largely upon the attitude of Great Britain, whose advice could not fail to influence Japan. While repeating that I had no authority to discuss the larger scheme, I reniarked that I could not altogether share his sanguine estimate of the weight which British advice would carry
in such a question with the Japanese Government. Liang Ta-jen asked whether America and Great Britain would be prepared to go on with the construction of this line in the event of China refusing to allow Japan and Russia to participate, In reply, I referred to the troubles which had arisen over the Fakumen line, and which had ended in the arrangement of September last. It was to forestall all difficulties of this kind, and to obviate the possibility of a similar result, that we now made the friendly suggestion for admitting Japanese participation.
Mr. Fletcher replied that he could not say what the United States Government would do in such a case, but his private opinion was that they were prepared to go through with the undertaking, although they considered it better to include all interested parties.
Liang finally promised to consult Prince Ching and his colleagues, and let Mr. Fletcher have a reply to his communications.
The Japanese Minister, to whom I communicated the result of the interview to-day, informed me that he had received instructions that his Government would not object to the construction of this line on condition that Japanese participation was granted by China. Japan could not take the initiative in urging participation upon China, but she was prepared to discuss the terms of such participation with China. I mentioned that Liang Ta-jen had expressed a wish to know the terms, and Mr. Ijuin said he would telegraph for instructions on this point.
I am inclined to think that the Chinese Government may be disposed to make the completion of the Chiucbow-Aigun Agreement dependent upon the degree of support which the larger scheme obtains from the Powers, and that it might have been wiser to defor the consideration of the latter proposal, which, I confess, appears to me to be of an impracticable character at present, until something definite had been arranged about the railway, to the construction of which the Chinese Government were more or less committed.
I have, &c.
J. N. JORDAN.
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Enclosure in No. 1.
United States Charge d'Affaires to Prince Ch'ing.
Rece
Rrot 24 FEB 10
Your Imperial Highness,
December 31, 1909. I HAD the honour to present to your Highness's board on the 21st instant a memorandum in the following terms:-
"On the 2nd October their Excellencies the Viceroy of Manchuria and the Governor of Fengtien signed, with the representatives of the American Banking Group and Pauling Company, an English firm, an agreement providing for the financing, construction, and operation of a railway from Chinchow to Aigun. The Government of the United States is prepared to support and facilitate this enterprise, which it believes would greatly contribute to the progress and commercial development of China.
"There are already in operation in Manchuria three separate and distinct railway systems, under Russian, Japanese, and Chinese direction. The co-operation between these three systems is not so close, nor are the economic benefits derived from their operation so great, as would be the case if all were under the same administration. Political questions have also arisen in connection with the contracts under which certain of these railways are operated. It seems, therefore, to the Government of the United States that perhaps the most effective way to preserve the undisturbed enjoy- ment by the Chinese Government of all political rights in Manchuria, and to promote the development of those provinces under a practical application of the policy of the open door' and equal commercial opportunity, would be to bring the existing and contemplated Manchurian railways under an economic, scientific, and impartial administration by some plan vesting in China the ownership of the railways through funds furnished for that purpose by the interested Powers willing to participate.
"The loan necessary for this purpose should be for a period ample to make it reasonably certain that it could be met within the time fixed, and should be upon such terms as would make it attractive to bankers and investors. It would also be provided that nationals of the participating Powers should supervise the railroad systems during the term of the loan, and the Governments concerned should enjoy for such period the usual preferences for their nationals and materials upon an equitable basis among themselves.
"The execution of this plan would, of course, require the co-operation of China and of Japan and Russia, the reversionary and concessionnaires respectively of the existing Manchurian railways, as well as that of Great Britain and the United States, whose special interests are in connection with the contemplated Chinchow-Aigun Railway.
"It is scarcely necessary to point out to the Imperial Chinese Government the immense advantages to China which would result from the plan above proposed. The ownership of all lines in Manchuria would become vested in China, and with such investiture all political questions which have arisen in connection with lines now in operation or in course of construction would be definitely settled. The Manchurian railways being thus welded into one system would become a vastly more efficient agency in the commercial, industrial, and agricultural development of those provinces. "The Government of the United States would learn with pleasure that this project meets with the favourable consideration of the Imperial Chinese Government.”
On the 24th instant I was informed by their Excellencies Na-t'ung and Liang Tun-yen, Presidents of the Board of Foreign Affairs, that the project above outlined met with the favourable consideration of your Highness's Government,
This suggestion, which has for its object the commercial neutralisation of the three Eastern provinces, has also been made to the various Governments likely to interest themselves in the project, and their replies will be, in due course, communicated to the Imperial Chinese Government.
The Government of the United States regards the Chinchow-Aigun Railway-- the preliminary agreement for the financing, construction, and operation of which was signed last October--as an important factor in the proposed plan. For should it transpire that the larger and more comprehensive project for the repurchase by China of all the Manchurian railways be found not possible in its entirety at this time, the desired end may approximately be attained by the construction of the Chiuchow- Aigua line by China under said arrangement, and by inviting, as provided therein, the
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