861.77/2301: Telegram

The Ambassador in Japan (Warren) to the Secretary of State

363. Limitation of armaments. Embassy’s 284, September 1, 5 pan.43 and [previous]. Following memorandum, dated yesterday, and marked confidential received today from Foreign Office.

“The Japanese Government having carefully examined the memorandum of the Government of the United States containing suggestions in regard to the Chinese Eastern Railroad hereby venture to express frankly their views on the subject and invite thereto the deliberate consideration of the United States Government.

As far as the Japanese Government understand, the main purpose of the United States proposal is to organize a technical board consisting [Page 609] of railway experts of the United States, England, France, Japan, Russia and China under joint control of the governments of the powers interested and entrust it not only with the general supervision of the railroad but with the technical and economic administration of the railroad affairs together with the full control over the receipts and disbursements of the company’s revenue and also with questions regarding the personnel of the railroad. It appears that under such an arrangement the United States Government intend practically if not in name to substitute the Chinese Eastern Railway Board with the Technical Board in question. If this assumption is correct it constitutes a radical change in the administration of the Chinese Eastern Railway and can scarcely be regarded as a simple question of affording assistance from outside.

It is true that there are various defects in the present administration of the Chinese Eastern Railway efficiency [sic] unsuitable to the existence of a railway board in the said railway which being legitimately organized under treaties and other arrangements between Russia and China is entrusted with the supervision and management of the railway, it is believed that any such suggestion as aiming at a radical change in the status of the railway by means of a third party stepping into the relations between these two countries will hardly commend itself to the parties concerned. Further, it is feared that it will not only provoke unnecessarily displeasure on their part but will create comment that it constitutes illegitimate interference or it is a covert attempt to take over the right of supervision of the railroad.

It can hardly be admitted that the actual condition of the railroad is so upset as would permit a third party to propose a radical reorganization of the railroad without inviting a suspicion and displeasure. Frankly speaking the Japanese Government doubt a great deal as to whether there is the need of making a radical change at present in the administration of the Chinese Eastern Railroad. Accordingly they find it difficult to bring themselves to acquiesce in the present suggestion of the United States Government.

It being however the unanimous desire not only of the powers concerned but of the Government and people of Japan who are vitally interested in the Chinese Eastern Railroad to keep it always in a full working [sic] minimum cost by assuring the maintenance of and operation of the railroad which occupies a very important position in the system of world traffic and also by further improving its financial condition and general management. The Japanese Government are always ready to render to it in cooperation with other powers concerned any assistance financial and otherwise with this object in view. In, however, such assistance to the railway the Japanese Government are of opinion that it should be done in full recognition of the legal and practical existence of the Chinese Eastern Railway Board which is responsible for the supervision and management of this railway and also with full respect for its present status. Accordingly they are disposed to think it advisable to adopt the following plan instead of the United States proposal now under review.

[Page 610]
1.
The Chinese Eastern Railway Board shall have direct control of the railway; and the Technical Board organized under the supervision of the Governments of the United States, England, France, China and Japan and consisting of the railway experts of the above-mentioned Nations shall in ease of need give technical and financial assistance to the Chinese Eastern Railway.
2.
The members of the Technical Board shall have equal right, elect the president and vice president of the Board with a view to harmonious cooperation with one another in carrying out the mission of the Board and in maintaining the uniformity of the conduct of the railway business.

Further, it is to be observed that in order to let the Chinese Eastern Railway fully discharge its functions as a great organ of world traffic it is necessary to consider together with the improvement of that railway questions such as effecting its connection with the Trans-Siberian Railway west of Manchuli and of the Ussuri Railway connecting Vladivostok and the eastern end of the Chinese Eastern Railway.”

Copy of memorandum being sent to Peking.

Warren
  1. Not printed.