CO129-373 - Public Offices - 1910 — Page 544

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In replying to this enquiry I must commence with an assurance that the Imperial Government fully appreciate the friendly motives by which the British Government are guided in their desire to come to an agreement which shall be equally acceptable to England and Russia respecting the status of British subjects in these settlements Their position certainly cannot be regarded as normal, as British subjects, although enjoying all the benefits of good management in the said settlements, do not bear any of the expenses in this connection. The Imperial Government are animated by a sincere desire to find a way out of this irregular situation creating unavoidable friction between the British and Russian Governments now working so harmoniously und successfully in many spheres of their foreign policy.

A solution, it appears to me, can best of all be found if we put aside juridical{ considerations of principle and endeavour to place our negotiations on this matter on a practical basis.

However inexpedient the position of the Chinese Eastern Railway zone on Chinese territory may be, it is impossible to ignore the fact that the land comprising this zone was obtained with the funds of this railway company, which has spent considerable sums on their proper management. We firmly hold the opinion that this fact gives the Chinese Eastern Railway Company, as in general to every proprietor, the right to manage their own property without giving account of their actions to foreign Governments. The company is only under an obligation to observe the principles proclaimed by the Imperial Government of the most-favoured-nation treatment" and the "open door" in China,

The British Government will be convinced from the explanations which, in accordance with the wish expressed by you, we are instructing our representative in Peking to give to his British colleague that this obligation is fully respected by the Chinese Eastern Railway Company, as the municipal government in existence on its lands in Harbin and other settlements is so constituted as to provide complete equality between the Russian and foreign population.

Receive, &c.

SAZONOW.

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