861.77/1363: Telegram

The President of the Technical Board (Stevens) to the Secretary of State

Kolchak, Pepeliaev shot at Irkutsk February 7. General Horvat advises us Japanese Government through the bank offers railway [Page 681] five year loan of 20,000,000 yen without security, simply receipt of railway; asks my advice, told him to let it alone. If consummated it means Japanese domination and I cannot conceive any policy that could be defended that would permit of this. Chinese Government trying to appoint the majority directors [of] Chinese Eastern, seeking for control of railway. Covertly threatening to take charge by force, but I believe are helpless alone. Culmination Chinese Eastern affairs appears to be imminent and if they eventuate as now seems probable, the United States will have much to regret in the future.