861.77/2786a: Telegram

The Secretary of State to the Minister in China (Schurman)14

253. You are instructed to address to the Chinese Foreign Office on October 31 next the note quoted below. It is understood that your British, French, Japanese and Italian colleagues will present on the same day notes of similar purport but not identical.

Note follows:

“I have the honor to inform you, by direction of my Government, that, in view of the final withdrawal from the Siberian mainland of Allied troops, the representatives of the United States on the Interallied Committee at Vladivostok and the Technical Board at Harbin have been instructed to proceed, in concert with their colleagues on those bodies, to the winding up of the affairs of each organization and the termination today of further activity.

In conveying this information to the Government of China I am directed to say that the United States confirms the resolution with respect to the Chinese Eastern Railway adopted by the nine Powers at the Washington Conference and the further resolution on the same subject adopted by the Powers other than China.

The first resolution reads:

Resolved, That the preservation of the Chinese Eastern Railway for those in interest requires that better protection be given to the railway and the persons engaged in its operation and use, a more careful selection of personnel to secure efficiency of service, and a more economical use of funds to prevent waste of the property.

That the subject should immediately be dealt with through the proper diplomatic channels.’

The second resolution reads:

‘The Powers other than China in agreeing to the resolution regarding the Chinese Eastern Railway, reserve the right to insist hereafter upon the responsibility of China for performance or non-performance of the obligations towards the foreign stockholders, bondholders and creditors of the Chinese Eastern Railway Company which the Powers deem to result from the contracts under which the railroad was built and the action of China thereunder and the obligations which they deem to be in the nature of a trust resulting from the exercise of power by the Chinese Government over the possession and administration of the railroad.’

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With special reference to the second resolution the United States reserves to itself all rights including those with respect to advances in money and material which have been made by it in aid of the Chinese Eastern Railway, either directly or through the medium of the Interallied Committee or the Technical Board.

The Government of the United States takes this occasion also to reaffirm its concern in the preservation of the Chinese Eastern Railway with a view to its ultimate return to those in interest without the impairing of any existing rights, as well as its continued interest in the efficient operation of the railway and its maintenance as a free avenue of commerce open to the citizens of all countries without favor or discrimination.

Having regard to its concern in these matters and to the important contributions which it has made to the maintenance and operation of the railway during the past four years, both materially and through the services of the distinguished American engineer Mr. John F. Stevens and his assistants, the Government of the United States will not fail to continue to observe carefully the administration and operation of the railway and the manner in which the Government of China discharges the obligations which it has assumed.

At the same time the Government of the United States desires to assure the Chinese Government of its friendly interest and good will and its readiness to assist or cooperate with the Government of China and the other Powers concerned at any time in any practicable way with a view to conserving the railway and assuring its efficient operation in the interest of all concerned.

Accept, etcetera.”

Copy of foregoing will be given to the Chinese Minister at Washington October 30 and to the press for publication October 31.

Repeat at once to Stevens and to the Consul at Vladivostok for their confidential information and convey to them the Department’s instruction to arrange without delay with their colleagues on the Technical Board and the Interallied Committee respectively for the immediate cessation of further activities and the earliest possible winding up of the affairs of the two organizations. It is understood that their colleagues will receive similar instructions from their respective governments.

Repeat all of foregoing to Tokyo as Department’s 128 for information and apprise Embassy of the Department’s desire that it should at once furnish a copy of the proposed American note to the Japanese Foreign Office informally for its confidential information.

Hughes
  1. See penultimate paragraph for instructions to repeat to Stevens at Harbin.