File No. 861.77/518

The Ambassador in Japan (Morris), temporarily at Vladivostok, to the Secretary of State

[Telegram]

The details of the plan for operating the railways have now been formally agreed to not only by Horvat, as representing the management [Page 275] of the Chinese Eastern, but also by Ustrugov who has undertaken to speak for the managements and personnel of the several railways comprising the Trans-Siberian Railway system. The agreement of the latter disposes of an opposition which proved more effective than I at first anticipated. The essential details agreed upon are stated in an informal memorandum which reads as follows:

Article 1

The general supervision of the railways in the regions in which the Allied forces are now operating shall be regulated and controlled by a special inter-Allied committee which shall consist of representatives from each power, including Russia, having military forces in Siberia and the chairman of which shall be a Russian. The inter-Allied committee shall exercise its supervision through:

(a)
A central office to be established for the operation of all the railways in the zone of Allied military operations;
(b)
An Allied military bureau to be created for the purpose of coordination of military transportation under direction of the proper military authorities.

Article 2

The protection of the railways shall be placed under the Allied military forces, and the technical administrative and economical management of all the railways in the said zone shall be entrusted to John F. Stevens, who shall be appointed by the senior military officers of the Allied forces in the several districts occupied by them. Mr. Stevens shall be given the title of Director General.

Article 3

At the head of each railway shall remain a Russian manager or director with the powers conferred by existing Russian law. The relations of the chairman of the inter-Allied committee and the Director General with said managers of railways shall be regulated according to the laws and rules heretofore established for the operation of the Russian railways.

Article 4

Each of the said managers shall have under him a railway office and a staff of engineers and employees. In such offices and on the railways the Director General may appoint in his discretion assistants and inspectors chosen from among the citizens of the Allied powers.

Article 5

The Director General shall appoint the general technical and administrative staff of central office and distribute the work among the members of such staff. The Director General shall appoint an assistant who shall be a Russian citizen. The staff of the central office, as appointed by the Director General, may consist of Russian and Allied engineers and agents.

Article 6

The clerical staff of the inter-Allied committee shall be appointed by the chairman of the committee who shall have the right of distributing the work among such employees as well as of dismissing them.

I have given a copy to each of the Allied representatives who have all expressed their approval and I hope that it will also be approved [Page 276] by the Department. It represents an adjustment of many conflicting interests.

Although personally Matsudaira and the members of the Japanese Staff favor the plan, the Japanese Government still hesitates to agree. I shall therefore return to Tokyo and take up the question with the new ministry. The cooperation of Horvat and Ustrugov and the Allied representatives have greatly simplified the issue. Mr. Stevens has consented to go with me in case any technical administrative question should arise. We will go by way of Harbin to investigate the report that Japanese engineers have practically taken over the operation of a part of the Chinese Eastern Railway in that neighborhood.

Morris