File No. 893.77/1559

American International Corporation to the Secretary of State

Dear Sir: We have the honor to acknowledge receipt of the Department’s letter dated October 21,2 with which you transmitted for our confidential information a paraphrase of a telegram dated October 19, 1916, from the American Minister at Peking, relative to the protest lodged with the Chinese Government by the Russian Minister at Peking, against the granting of the Fengcheng-Ninghsia concession to Americans.

We have read the Department’s inclosure with interest, and beg to call the Department’s attention to the fact that the contract recently entered into with the Chinese Government by the American International Corporation and the Siems-Carey Railway and Canal Company covers the construction of 1100 miles of railway in China. We do not hold a concession for the construction of the railroad from Fengcheng to Ninghsia, although the contract above referred to specifically mentions this line, together with two others, as roads which the Chinese Government desires to construct in making up the total of 1100 miles of railroad provided for in the contract.

Our agreement stipulates that in case, after investigation, the construction of the railroads specifically mentioned therein should not be found feasible, other lines giving an equivalent total mileage shall be selected.

As far as the American International Corporation is concerned, we do not wish to become involved in political controversies between the Chinese and Russian Governments.

We have no further comments or recommendations to make to the Department at this time.

Thanking you [etc.]

Charles G. Stone
, President
  1. Not printed.