File No. 861.77/498
The Ambassador in Japan (Morris), temporarily at Vladivostok, to the Secretary of State
[Received 6.28 p.m.]
Your September 23, 5 [4] p.m. In my judgment we can assume that our proposals in regard to the railways have been agreed in principle and that only the method of transfer is still a subject of negotiation. Both Matsudaira and Horvat have called upon me and I have discussed the details with them at length. The attitude of the French Government has strengthened our position. The British representatives while continuing to express sympathy will not definitely commit themselves.
Horvat’s object is to avoid personal humiliation and both Great Britain and Japan will I think support him in this effort. The matter is so vital to the interests of Russia that I am proceeding on the assumption that our Government will be satisfied with any method which transfers to Stevens and Emerson the unhampered control of operation during the period of military occupation and that it is immaterial whether the transfer is made through Horvat, with the consent of the powers interested, or by military order.
Unless advised to the contrary I shall conduct the negotiations on this theory agreeing to no terms which do not meet the approval of Stevens and Emerson. Stevens has been in Harbin for a few days but returns to-night. In the meantime I have been endeavoring by [Page 269] conversations with leading Russians, in reference to representatives [sic] of the Allies, to dissipate the prevailing suspicion that we are trying to steal a railroad.