File No. 893.77/1524

The Secretary of State to Minister Reinsch

No. 419

Sir: There is enclosed herewith copy of a letter dated March 31, 1916, from the American Group, with reference to reports in the public press to the effect that the Chinese Government has signed an agreement permitting Russia to construct a railroad from Harbin to Aigun with a branch to Tsitsihar. You will ascertain and advise the Department if there is any foundation for the press reports referred to in the letter above mentioned. If such an agreement [Page 169] has been entered into with Russia or is being considered, you will call the attention of the Chinese Government to the contract with the American Group described in the letter herewith enclosed.

I am [etc.]

For the Secretary of State:
Frank L. Polk
[Inclosure]

The American Group to the Secretary of State

Sir: We presume it is unnecessary to remind you—in connection with the current reports in the public press that the Chinese Government has signed an agreement permitting Russia to construct a railroad in Manchuria from Harbin to Aigun, with a branch to Tsitsihar—that in October 1909 there was signed a preliminary agreement between the Viceroy of Manchuria and the Governor of Fengtien on behalf of the Manchurian Administration, and the American Group, for the construction of a railroad from Chinchow to Aigun through Tsitsihar.14 This agreement was ratified by edict of the Imperial Chinese Government on January 20, 1910,15 and the American Legation at Peking was formally notified of the fact16 and was informed that the Viceroy of Manchuria had been instructed to negotiate a detailed agreement with the representative in China of the American Group.17 On April 26, 1910, the Viceroy of Manchuria and the Governor of Fengtien transmitted to the then agent in China of the American Group the English and Chinese text of a loan agreement of the Chinchow-Aigun Railway, stating that such agreement constituted “the final draft entered into and definitely fixed between the Viceroy of Manchuria and the Governor of Fengtien on the one part, and the American Group on the other part”, and that “as soon as ever we, the Viceroy of Manchuria and the Governor of Fengtien, shall have memorialized the Throne and obtained the Imperial assent thereto, the signatures shall thereupon be fixed and the agreement be made operative”.

While the American Group desire expressly to state that they have no wish to press at this time for final ratification of the loan agreement above referred to, yet they deem it proper to inform the State Department, as a matter of record, that they have never formally relinquished such rights as they may have under the arrangements with the Chinese Government as detailed above. On the contrary, they have stated to the Chinese Government from time to time that they consider all their rights under the foregoing arrangements to be reserved and continued.

We have no intention by this letter to suggest action to the Department of State, but simply write to inform you of our position, which is, of course, a matter of record in the Department but which you may be glad to have restated thus.

Respectfully,

The American Group,
By J. P. Morgan & Co.