861.77 Chinese Eastern/414

The British Ambassador (Howard) to the Secretary of State

My Dear Mr. Secretary of State: I have just had a reply from our Secretary of State for Foreign Affairs to the telegram I sent him on the 28th [26th] instant recording a conversation I had with you that morning on the subject of the Russo-Chinese dispute.

He asks me to inform you that while His Majesty’s Government would be most glad to join in any action by the interested Powers which might be expected to further effectively the cause of peace, they consider it a matter of the first importance that only such action should be contemplated as both parties to the dispute would agree to and which would be incapable of interpretation as in any sense prejudging the issue.

His Majesty’s Government have recently received from Pekin information as to the attitude of the Chinese Government which is to the effect that the latter will in no circumstances consider any return to the status quo ante on the Chinese Eastern Railway and that they still insist that the offices of General Manager, Assistant Manager and all the principal executive posts shall be held by Chinese who must have undisputed control of the management of the Railway.

In view of the above, the restoration of effective management of the railway to Soviet officials appears, for the present at least, to be out of the question, and consequently His Majesty’s Government fear that any action by the Powers tending to achieve such a result would not only be fruitless and meet with a blank refusal from the Chinese Government, but might also be used by the Soviet Government as excusing or palliating a resort to arms on the grounds that China was condemned in advance as the guilty party in the dispute.

His Majesty’s Government have received repeated assurances from the Chinese Government that they will in no circumstances take the offensive and they have also received information that German military authorities are of opinion that Russia is not in any position to undertake serious military operations in Manchuria.

They do not therefore despair of a pacific settlement of the dispute and would prefer for the present to await the result of the negotiations, direct or indirect, between the two parties thereto, which are believed to be proceeding with that end in view.

Please believe me [etc.]

Esme Howard