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I now beg to enclose, in translation, the regulations of the society* together with reports of the first two meetings,* as published in the local Russian newspapers "Harbinski Viestnik" of the 26th April and "Novo Zhizn " of the 6th May.
The main purpose of the society, as set forth in its regulations, is to develop and improve commercial relations between Russia and Japan and to assist the dissemination of a knowledge of the language of each country among the subjects of the other. At the initial meeting, held on the 24th April, Mr. Tischenko, the editor of the "Iarbinski Viestnik," particularly emphasised the fact that the institution had no political motive and must direct its energies exclusively towards the attainment of the objects for which it had been established.
It is difficult to think that the policy expounded by Mr. Tischenko and explained in the regulations of the society is either the real raison d'étre of the new association or one which can be strictly followed. There is, as far as I can gather, very little intercourse between bond fide Russian and Japanese merchants in Harbin, and there are a few points connected with the initiation and constitution of the society to which I may be permitted to make special reference.
It seems clear from the report of the first meeting that the society has the approval and support of local Russian officials occupying a prominent position, who considered it desirable to mark the occasion of its introduction to the public with messages of greeting and good-will. On the Japanese side a long congratulatory speech was made by a representative of the Japanese consulate-general, namely, Mr. Sugina, the first secretary, who is a fluent Russian scholar. More significant, perhaps, still are the descriptions and occupations of the members of both countries who have been elected to sit on the council of the society. These are contained in a separate list which I have prepared and which forms enclosure 4 to this despatch.* As regards the Russian members, all but MM. Dynowsky, Steinfeld, and Poletika are directly connected with the railway administration, under whose auspices the commercial schools are conducted and whose press organ is the "Harbinski Viestnik." The only merchant is M. Dynowsky, who was also at one time associated with the railway, and is now part-lessee of the Manchurian Flour Mill and vice-chairman of the town or municipal council, which can itself hardly be considered as entirely independent of the railway company. The Japanese members, excluding Mr. Takachi, of the Mitsui Bussan Kaisha (a commercial company which is generally thought to have strong Government support), and two gentlemen, whose occupations I have been unable to discover, are none of them business men--three are journalists, two are members of the Japanese consulate-general at Harbin, and two are connected with the South Manchurian Railway. Lastly, it may be observed that the regulations require the confirmation of the Civil Department of the Chinese Eastern Railway, the head of which is General Affanasiev.
I have already stated that there is, as far as I can ascertain, little intercourse between bona fide Russian and Japanese merchants in Harbin-indeed, merchants of both nationalities are, in the restricted sense of the word, few-and there appears to be good reason to think that the movement towards a rapprochement with Japan, though it may have official Russian support and may be favoured by certain individual Russians who have personal interests to serve, does not meet with the approval of the local Russian community in general.
The question was recently discussed in a long article in the "Novo Zhizn," an independent journal, the theme of which was that the Russians and Japanese are altogether too dissimilar to make closer relations between them at the present time either desirable or possible. The following is a quotation :---
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"In Japan the practice obtains of performing harakiri.' In our country not one patriot has ripped open his stomach. We love in our way and the Japanese love in their way. Between us and the Japanese there is a gulf which no written regulations can bridge.”
expresses
The writer
the opinion that it is impossible to exclude political questions from the objects of the society and he plainly entertains the fear that the party which will benefit from the arrangement is the Japanese and not the Russians. He makes special note of a statement to the effect that Russia's economic interests in South Manchuria are small; while those of Japan in the north of the province are of vital importance and, in order to give force to his argument in regard to the difference in character and method of the two nationalities, he says:-
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We came to the meeting, so did the Japanese. We came, one by one, without previous preparation-each one spoke for himself. With the Japanese it was otherwise. Each one had a copy of the regulations; they were all prepared and
que person was authorised to speak for them all.”
In a word, in view of the recent war and the uncertainty attaching to the relations between the Governments of the two countries, the writer thinks that the time is not ripe for any society of the kind in question and that the Japanese, who, he admits, are more thorough and more fanatically patriotic, will get the better of the bargain.
The writer, in fact, sounds a note of warning which to many of his compatriots will not appear needless. It is unnecessary to lay stress on the strength of Japan's position in South Manchuria, but I venture to think that it will be of interest to mention certain indications which point to a desire on the part of the Japanese to push their influence into the north of the province, and it is the north of Manchuria, or what may be called the Russian sphere, which offers the largest field for develop- ment. I have previously, in my despatch No. 6 of the 30th March last, alluded to the wish of the Japanese to be allowed to navigate the Sungari, and I trust that I shall not be thought tedious if I quote at length the following paragraph from the Ryoto Shimpo," which appeared in the British Association of Manchuria " Bulletin" of the 23rd ultimo :-
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"Enterprise in North Manchuria and the Japanese.--None of the work carried on by the Japanese in South Manchuria is worthy of particular attention. The rearing of the wild silk-worm and the silk-weaving industry are gradually showing a favourable tendency. Several industries wherein Kaoliang will be utilised are also being developed. In North Manchuria, however, stops are being taken by the Japanese to develop the natural resources. In particular, gold, silver, and other mining operations are contemplated. Needless to say, in order to carry out this purpose, it will be neces sary to deal quite openly with the Russian officials, if a mutual benefit is to be secured, and it is important that [the ?] place selected for these negotiations be conveniently situated, so that a prompt settlement of any difficulties may be arrived at.
It is a matter for congratulation that the number of Japanese intending to establish an agency or branch in Harbin is increasing, and it is said that their arrival is welcomed by the Russians."
I regret that I have no knowledge of the standing of the "Ryoto Shimpo," and am therefore unable to state whether its opinions are generally deserving of careful attention, but the progress which has apparently been made by the Japanese with the development of the Fushun coal mines, and the success which seems to be attending their efforts to find a market for the coal would appear to indicate that they find mining enterprise in North China not unprofitable. This coal, concerning which I enclose (Enclosure 5) copy of an article from the "Nichi Nichi,"" appearing in the British Association of Manchuria "Bulletin" of the 29th and 30th April, the tone of which is somewhat striking, has already found its way to Harbin, and I understand that experiments have been made with it by the Chinese Eastern Railway. Two years ago coal as a fuel was not known in Ifarbin; at the present moment the tendency is to use it in preference to wood. Thus a gradual change from wood to coal fuel is, I understand, being made by the railway company, and there is reason to believe that a similar innovation is contemplated in respect of the steamers plying on the Sungari and Amur. Local flour mills and breweries are now, it is estimated, using respectively 40 per cent, and 30 per cent. coal fuel, while the electric light stations and other establishments consume this substance exclusively. The coal burnt by all these enterprises, excluding the railway, comes from Fushun.
The Chinese Eastern Railway is able to draw some supplies from mines in the neighbourhood of Vladivostock, and there is a mine in operation at a point near Manchuria Station. The company also has (vide Mr. Willis's despatch No. 24 of the 7th March, 1908) coal-mining rights along the whole line of the railway in the provinces of Heilungchiang and Kirin. What the Russians in Manchuria, however, seriously lack is fands, and that they are not necessarily averse to the employment of foreign capital, even in Russian territory itself, is sufficiently clear in that Messrs. Jardine, Matheson, and Co. have an interest in a zine mine on an island near Vladivostock, and that they and other Shanghae merchants, such as Messrs. Craig
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