CO129-384 - Public Offices - 1911 — Page 234

CHINA RAILWAYS.

CONFIDENTIAL.

[25908]

0

No. 1.

231

CO

24600

[July 3.1

SECTION

27 1

Sir,

Messrs. Pauling and Co, to Foreign Office.-(Received July 3.)

26, Victoria Street, London, July 3, 1911.

I HAVE the honour to acknowledge the receipt of your letter dated the 14th June, and, in reply, I am directed to inform you, for the information of Secretary Sir Edward Grey, that the conference between the representatives of the American banking groups and Messrs. Pauling and Co., referred to in Lord french's memorandum, took place on the 12th ultimo at Messrs. Morgan, Grenfell, and Co.'s office in London.

At this conference the delegates of the American banking groups adopted and endorsed the construction of a line from Peking to Harbin as a solution of the Manchurian Railway question, and they warmly supported the proposal, which we had the honour to lay before Secretary Sir Edward Grey, of a conference with the Japanese Ambassador with a representative of the British Foreign Office present.

The delegates left for America thereafter to place the matter before the American State Department, promising to cable us the result of their consultations with their department.

I am now desired to inform you that both Lord ffrench and Messrs. Morgan, Grenfell, and Co., of London, have received cable despatches that the American State Department entirely approves Lord ffrench's scheme to meet in conference the Japanese Ambassador with a representative of the British Foreign Office present, in order to obtain Japan's views regarding the proposed Peking-Harbin linc.

Lord #french is also informed that the American State Department has cabled to the American Embassy in London approving of this procedure, and he is assured that both the State Department and the group are in complete accord with his proposal to arrange a conference at once.

In reply to the point raised in your letter of the 14th June, both Lord ffrench and ourselves believe that the views of the Russian Government on the railway line in question have now been definitely expressed in a further letter which Lord ffrench received from M. Kokowstoff, a copy of which he sent personally to the Foreign Office on the 14th June.

From this letter and the previous correspondence it is clear that the Russian Government, while they will not oppose the line, yet hold the view that above all Japan must be consulted, and therefore refer us to that Government.

We therefore trust that the way is now open for His Majesty's Government to afford us the opportunity of meeting the Japanese Ambassador as suggested.

I am, &c.

(For Pauling and Co., Limited),

J. M. SCOTT, Secretary.

[2099 c-4

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