861.77 Chinese Eastern/180: Telegram
The Minister in China (MacMurray) to the Secretary of State
676. Legation’s 627, July 25, 3 p.m.44 Military Attaché has received the following report, dated July 31, from Lieutenant White45 of his office, now in Mukden:
“Mr. Donald just let me have a memorandum of the Chinese interpretation of the status quo with regard to the C.E.R. The memorandum has just been approved by the Young Marshal. This is an exact copy of the official memorandum:
‘China’s interpretation of the status quo with regard to the Chinese Eastern Railway must be based upon the following:
- 1.
- The railway is a commercial enterprise (Peking agreement, article 9, seconds [section?] 1; Mukden agreement, article 1, seconds [section?] 1).
- 2.
- Complete elimination of Bolshevik propaganda and influence (Peking agreement, article 6; Mukden agreement article 5).
- 3.
- Soviet general manager and Soviet members of Board of Directors and staff must be persona grata to China (Mukden agreement, article 1, section 8).
- 4.
- Powers of general manager and his assistants must be delegated in detail (Mukden agreement, article 1, section 8).
- 5.
- Parity in the appointment of staff and employees (Mukden agreement, article 1, section[s] 9 and 10).
- 6.
- Use of Chinese language as well as Russian in official documents, etc. (This clause blue penciled and crossed out.)
- 7.
- Control of and disposition of revenues by Board of Directors (Mukden agreement, article 1, section 1).
- 8.
- China’s rights shall be those of full partner with the prerogative of investigation of management. (This clause blue penciled and crossed out.) Investigation must be conducted at once by China into the administration and affairs of railway during the past four years with special reference to: (1) Commercial operation; (2) technical operation; (3) financial operation; (4) administration.’
A commission to make a complete investigation of the affairs of the C.E.R. will shortly be appointed and will work from Harbin. I gather that Ostroumoff will be a technical adviser though Donald would not commit himself.”