861.77/2394: Telegram

The Minister in China (Schurman) to the Secretary of State


21. I have called on the Minister for Foreign Affairs and carried out the instruction given in your telegram no. 3 of January 10, 7 p.m. He wished to know the details. I informed him that my suggestion was merely a tentative outline plan to keep any one foreign power from gaining control of the Chinese Eastern Railway. He said he would confer with the Minister of Communications regarding the proposal.

Yesterday I repeated our views to the newly appointed Vice President of the Chinese Eastern, Mr. C. C. Wang, who spent an hour with me. Mr. Wang said that it was his opinion that the railway can go along without borrowing heavily but that in case a large loan was necessary he was in favor of making it international and subject to audit. He was personally in favor of keeping the present status with regard to the railway. He realized that the arrangement must be such as to satisfy a rehabilitated Russia and did not believe there would be any agreement made with Soviet Russia on paper money questions. Wang expects to leave in 10 days for Harbin.