861.01/770: Telegram

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

91. My 78, March 13, 6 p.m. Rosta published text of the main agreement signed by Karakhan and Wang which provides in respect to Chinese Eastern Railway the following:

1.
Railway is a purely commercial enterprise and with the exception of matters pertaining to its business operations “all other matters affecting the rights of the national and the local governments of the Republic of China … shall be administered by the Chinese authorities.”
2.
Russia “agrees to the redemption by the Chinese Government with Chinese capital of the Chinese Eastern Railway.”
3.
Russia “agrees to be responsible for the entire claims of the shareholders, bondholders and creditors [of] the Chinese Eastern Railway incurred prior to the revolution of March 9, 1917.”
4.
Russia and China mutually agree that the future of the Chinese Eastern Railway shall be determined by them “to the exclusion [of] any third party or parties.”
5.
Russia and China “agree to draw up an arrangement for the provisional management of the Chinese Eastern Railway.”
6.
Until the final settlement the rights of the two Governments arising out of the contract of 1896 “which do not conflict with the present agreement and with the agreement for the provisional management of the said railway and which do not prejudice China’s right of sovereignty, shall be maintained.”

According to circular telegram sent out by Cabinet only the following three matters remain in dispute, namely, China’s demand for cancellation treaties between Soviet and Outer Mongolia in which latter is considered as independent country, China’s demand for immediate withdrawal of Russian troops from Mongolia, Chinese refusal to grant Russian demand that Russian properties such as churches and immovable property should be handed over to the Russian Government.

Schurman