[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS,
CONFIDENTIAL.
47
[January 3.]
SECTION 3.
(1)
(No. 2.)
No. 1.
Sir Edward Grey to Sir A. Nicolson.
(Telegraphic.) R.
Foreign Office, January 3, 1910. YOUR telegrams Nos. 521 [of the 31st December, 1909] and 1 [of the 1st January: Chinchow-Aigun Railway].
I am glad to learn that M. Isvolsky is not likely to complain of our action. Should his Excellency refer to the matter again you can say that we have really been passive in the matter. Paulings, a British firm acting quite independently of us and on their own initiative, first applied to China for the Fakumen Railway. This was blocked by Japanese opposition at Peking. Paulings then applied for Aigun Railway, and made their own enquiries as to Japanese attitude towards it. Japanese told them they would oppose unless they had participation. That was how matter came to us. We enquired privately at Peking as to whether Chinese would admit Japanese participation. Chinese reply was unfavourable, and we have hitherto done nothing except what is described in my telegram No. 1375 [of 30th December] We are anxious to see obstacles to an enterprise in which British capital is interested overcome, but inference from last sentence of my telegram No. 1375 is that, as knowledge of Japanese opposition caused an attitude of reserve on our part, we should have given consideration also to Russian views had we known that she would take an interest in the matter. We are prepared to give this consideration now, when we know what M. Isvolsky's views are, and meanwhile we are taking no action. Indeed, in reply to further enquiry from United States Ambassador as to what we were prepared to do, I have already stated that it would be well for United States Government to ascertain and consider Russian views before taking further action.
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