893.77/1869
The Minister in China (Crane) to the Acting Secretary of
State
Peking, December 3,
1920.
[Received January 14,
1921.]
No. 542
Sir: With reference to the Department’s
telegrams No. 259, October 2nd, 4:00 p.m., No. 325, of November
10th, 6:00 p.m., and to the Legation’s telegram No. 309, of October
10, 12:00 a.m. [noon], regarding the
Siems-Carey Company and the American International Corporation, I
have the honor to transmit herewith memoranda of interviews with Mr.
T. C. Sun, of the Ministry of Communications, of October 9th35 and December 1st, 1920.
I have [etc.]
(For the Minister)
A. B.
Ruddock
[Enclosure]
Memorandum of a Conversation between Mr. T.
C. Sun, of the Ministry of Communications, Mr. Torrance, of
the Siems-Carey Railway and Canal Company, and Mr.
Ruddock36
[Peking,] December 1, 1920.
Mr. Ruddock communicated to Mr. Sun the substance of Department’s
November 10th, 6 p.m., No. 325. Mr. Torrance informed Mr. Sun
that the Siems-Carey Company, while believing that the Peking
organization of the Company should be maintained, was prepared,
contrary to its best judgment, to assent to the curtailment or
discontinuance of that office should the Chinese Government so
desire. On the other hand the Company was prepared to continue
to advance funds to keep the office in operation and to maintain
the current deficit. The Company was of the opinion that
construction on the Railway should not begin until the survey
had been completed, and that in view of existing conditions in
China it was not an opportune time to send field parties into
the country districts. Mr. Torrance alluded to two recent
instances of murder of British subjects by bandits. Mr. Sun
claimed that it was entirely feasible to send out field parties,
that he did not anticipate that any military operations would
take place, but that if they did they would not interfere in any
manner with foreigners, particularly those engaged in railway
survey work. Mr. Torrance expressed his willingness and desire
to report to his Company the views expressed by Mr. Sun in this
connection with a possible view to the advance by his company of
funds to complete the survey, although he felt that his Company
would desire some form of guaranty for the safety of the field
parties. In reply Mr. Sun stated positively that the Chinese
Government would afford protection but could not give
guarantees: other foreigners and native engineers were engaged
on the railways without asking such guarantees; if necessary no
foreign engineer but only Chinese engineers could make up the
personnel of the field parties. Mr. Sun repeatedly confirmed his
view that no difficulties would be encountered by field
parties.
Mr. Ruddock conveyed the statement contained in Department’s 325
that Mr. Carey had made no promise to begin work within a ten
month period. Mr. Sun emphatically repudiated this statement and
repeated what he had said on October 9th that Mr. Carey had
declined to put such an engagement in writing as he said such
written statement would be superfluous and that work would begin
at once as soon as he could return to America and consult with
Messrs. Stone and Wiggin. Mr. Sun expressed the fear that
failure of this
[Page 679]
enterprise would seriously damage American prestige in China;
that other nationalities, namely the French, Belgian and Dutch,
were proceeding with their enterprises, notably the Lung-Hai
Railway and the Pukow Port development schemes. As a matter of
fact today ten million francs had just been transferred from
Paris and forty million more were available for the latter
scheme at a lower rate of interest, say five or six per cent.
When it was pointed out that such advances could only be made at
a loss by France Mr. Sun assented, stating that such advances
were made under a previous contract and were carried out to
maintain French good name in China. He expressed the view that
American financiers were taking a too purely business point of
view in the present instance, as equally large if not larger
returns were immediately available in the American market, but
called attention to the fact that investments in China, and
particularly the carrying out of this contract, would eventually
bring in large returns and very much enhance American
influence.
Mr. Sun also referred to the fact that the French were about to
undertake the construction of a line from Ching-Yu northwesterly
into Yunnan. Mr. Sun stated that the Chinese knew well that the
United States were in a better financial situation than either
France, Belgium or Holland, and were hence unable to understand
how these other countries were able to make more favorable
financial terms with China than America.
Mr. Sun said that he would communicate the messages from Mr.
Torrance and Mr. Ruddock to Yeh Kung Choh, Minister of
Communications, and bring back his reply.37
