861.77/1670: Telegram
The Chargé in Great Britain (Wright) to the Secretary of State
[Received August 19—10:34 a.m.]
1256. Have discussed your August 5, 1 p.m. with Alston and Foreign Office. The informal views of the latter follow:
They agree on section A.
They agree to section B if practical but offer the following observations: (1) Japan might be justified in continuing troops on some parts of the railway on account of the dangerous situation as regards Russia; (2) the understanding by which after our evacuation Japan gained the control it now has from Vladivostok to Nikolsk, which is [apparent omission] to the Foreign Office, has a great deal to do with this; (3) the railway might be endangered by inefficiency on the part of Chinese troops; (4) if we agreed to allow Japan to have a share in guarding the railway, it might make our negotiations on other matters less difficult.
As to section C, the idea of having the consortium finance the railway still has the favor of the British group, as has been reported before. Financial aspect would be more simple if American group would agree. (1) We can find no such clause in the contract for the railway. (2) The Department is asked to explain the matter of guarantees, which is not understood. Even if it were practical to use Russian gold it would involve legal decision as to its use and there would be the necessary delays and complications connected with participation by the governments in financial matters. Financing [Page 709] would be more easily obtained and more elastic if done by the consortium.
The attitude of the British in all our discussions has been in keeping with that described in your last paragraph.