Ambassador Bacon to the Secretary of State.

No. 30.]

Sir: I have the honor to send herewith a copy and translation of a memorandum, dated January 26 last, which has just been received from the minister for foreign affairs in reply to the communication which Mr. Bailly-Blanchard addressed to him in compliance with the department’s cable.

I have, etc.,

Robert Bacon.

[Inclosure—Translation.]

The French Government has the honor to thank the Government of the United States for its memorandum, dated December 17, 1909, relative to Manchuria, as well as for the proposals of participation which it contains both for the international system applicable eventually to the existing railroads and for the construction of a future line from Chinchow to Aigun.

In a general manner the Government of the Republic shares in the unanimous desire of the powers to maintain the “open door” and “the equality of commercial opportunities in Manchuria,” and is happy to seize this opportunity to affirm once more the principle of the sovereignty of China.

It considers, moreover, that the above principles are not menaced at the present time by the actual situation held by Russia and Japan in Manchuria, the rights and the special position of these two powers there having been determined by treaties which form part of public international law, the clauses of which they have not ceased to respect.

Under these conditions France could not have adhered to the first alternative considered by the Federal Government (international administration and control of the railway lines in Manchuria) unless by a common accord the two powers most interested had been disposed to renounce their contract rights in Manchuria and to side with the American suggestion.

In practice, even outside of political and moral interests difficult to estimate, it would have been in any hypothesis hard to figure the material expenditures, public as well as private, which it was proposed to reimburse, and China would have run the risk of assuming a heavy burden for its credit.

The second proposition of the United States Government (construction of a railway line from Chinchow to Aigun by means of international participation) enters, if one considers it by itself, in the system of understanding between the powers for the construction, in agreement with China, of the Chinese railways, system to which the French Government has adhered; in this capacity it would be disposed, in this case, to take part under reserve of obtaining therewith advantages in proportion to its financial participation.

But this adherence in principle remains itself subordinate to the acceptance by the powers most interested, Russia and Japan, in case these should consider definitively that the question of the construction of the Chinchow-Aigun line can rest solely upon a business basis, without provoking political, strategic, or economic repercussions contrary to the rights which they hold by treaty.