893.51/2738: Telegram

The Secretary of State to the Chargé in Great Britain ( Wright )95

329. The American Group is copying to the British and French Groups a message from Lamont dated March 26 from Tokyo96 indicating that he has received from the Japanese Banking Group and from responsible members of the Government assurances warranting the hope that Japan is prepared to enter the Consortium without reservations if the other three groups authorize him to exchange with the Japanese Group letters recognizing that the South Manchuria Railway and its present branches and the mines subsidiary thereto are to be excluded from the Consortium; that the Taonanfu-Jehol Railway and branch to the Sea are to be included within the Consortium; and that the Kirin-Hueining, Chengchiatun-Toananfu, Changchun-Taonanfu, Kirin-Changchun, Sinminfu-Mukden and Ssupingkai-Chengchiatun railways are to be outside the scope of operations of the Consortium; no mention being made of any general economic or political rights of Japan in Manchuria or Mongolia. Ambassador Morris also reports hopefully on the prospects of an early arrangement on this basis.

In view of the present favorable situation the Department concurs in the hope expressed by Lamont that the British and French Governments and Groups will give their approval to his proposal to waive any objection to the exclusion from the Consortium of the three railroads west of the South Manchuria line which were mentioned in section 3 of the list attached to the Japanese note of March [Page 522] 2nd.97 You will recall that the British reply of March 19th communicated in your No. 485 March 20th, 1 p.m. objected to the exclusion of these lines. This Government feels that nothing substantial would be lost by yielding on this point and that the agreement of the Japanese Government on more essential questions would be facilitated thereby.

You will please take this matter up as one of urgency with the British Foreign Office and emphasize the fact that a satisfactory solution of the long pending question of the Consortium appears to be within reach if the British and French Governments and Groups give their assent to the interchange of communications proposed by Lamont.

Repeat this telegram as No. 641 to Embassy at Paris which it is desired should similarly inform the French Foreign Office of the tenor of this instruction and should request the cooperation of the French Government and Group in furtherance of the proposed arrangement. Although it would appear that the Japanese Government has not recently communicated with the French Government on this subject it may be that the latter will find the present juncture opportune for authorizing its Embassy at Tokyo to cooperate with the American and eventually with the British Embassies in such representations as may be found desirable to make to the Japanese Government in support of Lamont’s plan.

Colby
  1. See last paragraph for instructions to repeat to Paris as no. 641.
  2. See telegram no. 124, Mar. 26, from the Ambassador in Japan, p. 519.
  3. Ante, p. 500.