893.102H/328: Telegram
The Secretary of State to the Chargé in China (Tenney)
With reference to Department’s telegram of August 2, 4 p.m., and your telegram of October 11, 1 p.m.
Standard Oil Company complains to the Department that they are being denied the right to purchase land by municipal authorities at Harbin unless the word “provisionally” is dropped in connection with this Government’s assent to payment of taxes at Harbin by American citizens. If this is true the Department is of the opinion that it indicates that the Russian authorities are endeavoring to use pressure for the purpose of forcing this Government to recognize an unwarranted extension of the rights of the Chinese Eastern Railway at Harbin. As indicated in previous instructions in this matter this Government made great concessions in an endeavor to assist the [Page 791] Russian authorities in dealing with the difficult situation at Harbin and it is very much disappointed at the apparent reluctance of the Russians to meet us halfway. Such an uncompromising spirit leads the Department to apprehend that no good would result from further negotiations along these lines and you are therefore instructed to advise the Russian Legation that in the event of the Russian authorities insisting upon the position there taken by them this Government would feel obliged to discontinue such negotiations and withdraw any offers for settlement on the basis of the Anglo-Russian understanding of 1914 reverting to our original position in regard to the political or administrative functions asserted by the railway company.
Repeat to Harbin for its information.