File No. 893.77/1578

Minister Reinsch to the Secretary of State

[Extract]
No. 1282

Sir: Supplementing previous correspondence concerning the protest made by the Russian Minister against the construction of a railway from Fengchen to Ninghsia, I have the honor to enclose translations of the following Chinese documents, which have been handed to the Legation:

Note from Russian Minister to Chinese Foreign Office, October, 1916.

Memorandum of conversation between French Chargé d’Affaires and Secretary of American Legation, on October 20, 1916.

The result of all the conversations, reported in this and former despatches, is that, with the exception of the Russian Legation, no representative has entered a protest against the American railway contract. On the contrary, the representatives of Great Britain, France, Japan and Belgium have expressed themselves in a favorable sense to the undertaking of this enterprise.

I have [etc.]

Paul S. Reinsch
[Page 208]
[Inclosure 1—Translation]

The Russian Minister to the Vice Minister of Foreign Affairs

I have the honor to acknowledge the receipt of a note, No. 165 of the 23rd instant, from the former Acting Minister, Ch’en, in reference to the interpretation of the railway agreement of the 25th year of Kuanghsu (1899).

In reply I have to state that the view of the former Acting, Minister was based entirely on the Tsungli Yamen’s note of the 23rd day of the 4th moon (June 1, 1899). Actually, however, that note is not in entire accord with the agreement entered into between the former Minister, Mr. de Giers, and the Tsungli Yamen, which was later confirmed by an exchange of notes.

This question has since been settled in accordance with the view of the former Minister, Mr. de Giers. For, in a note of the 12th day of the 11th moon of the 25th year of Kuanghsu (December 14, 1899), the Peking-Kalgan Railway, which runs from Peking to the northwest, was included within the application of the said agreement, and it was stated that Chinese or Russian capital would be used in the construction of the railway, and that no loan from another country should be made.

The loan recently made by China from an American company for the construction of the Feng-Ning Railway appears to be especially for the extension of the Peking-Kalgan Railway. In the opinion of my Government, since the agreement of the 25th year of Kuanghsu includes the Peking-Kalgan Railway, therefore, all extensions thereof, no matter in what direction, are also Included therein.

Having now received instructions from my Government I would again state that the Russian Government protests against the surrender by China to a company of another nationality of its right to extend the Peking-Kalgan Railway, that it considers such surrender to be a violation of the agreement of the 25th year of Kuanghsu, and that it will hold the Chinese Government responsible therefor.

[
Prince Koudachef
]
[Inclosure 2]

Memorandum of a conversation between Count D. de Mart el, French Chargé d’Affaires, and Mr. J. V. A. MacMurray, Secretary of Legation

On October 20th last, Count Martel called to ask of me such information as I could give him in regard to the rumor that the Siems-Carey Company railway contracts contemplated the building of a line in the Island of Hainan. I told him that among the lines specified as part of the available mileage in that contract, was one from Chungchow to Lu Wei. He then asked the general character of the agreement, and I told him that it was of the same general character as the Pauling contracts, providing for a commission on the basis of the actual cost of construction: and in reply to his inquiry as to the nature of the securities, I read him the terms of the article (VII of the contract of May 17th last) covering that question.

He then said that this seemed to him quite unobjectionable from the viewpoint of French interests; and recalling that the newspapers that morning had stated that he had protested to the Foreign Office against the construction of such a line, he said that he wanted our Legation to know that he had not made any such protest—that, with a view simply to drawing out the Acting Minister for Foreign Affairs (Dr. Chen Chin-tao), he had in conversation said that he had heard that such a line was contemplated in Hainan, and that while he knew nothing about it he felt obligated to call attention to the non-alienation agreement of March 15, 1897, and to reserve any French rights which might prove to be affected; that Dr. Chen had professed ignorance of the matter, and that he had therefore dropped the subject with him and decided to come to our Legation for definite information.

Count Martel said that in view of the information I had given him he felt, for his own part, that the proposed construction of the line in Hainan did not affect any French rights; and that while, of course, he could not state in advance the position of his Government, he did not foresee that it would entertain any objections to the project.

[Page 209]

He then inquired concerning the proposed section from the neighborhood of Changsha to Nanning: and, again referring to the newspaper reports that he had protested against the construction of that section as infringing upon the rights of the Banque Industrielle under its contract of January 21, 1914, for the construction of a railway from Yamchow to Yunnanfu, he stated that he had made no such objection, and that he in fact saw no reason for any such objection, inasmuch as the proposed American line would serve a wholly different territory and would rather contribute to the business of the proposed Yamchow-Yunnanfu railway, than detract from it.

Count Martel commented in similar terms upon the proposed American line from Fengchen to Ninghsia, in its relation to the concession for the line from Tatungfu to Chengtu, in which French financiers have a part interest.

J. V. A. MacMurray