File No. 893.77/1659
The Minister in China (Reinsch) to the Secretary of State
[Received 5.35 p.m.]
Russian Minister, Horvat, Kolchak, officially informed me to-day of the formation of board of directors Chinese Eastern Railway. Russian Minister stated the financial requirements were 3,500,000 rubles per month for which application had been made to those Allies who had hitherto given support and that this information was given in order that the American Government might consider participation. He stated it is planned railway troops to the number of 17,000 should be enlisted. Semenov would be under Kolchak who is in charge of military operations. He stated Semenov would be under attack of a Cossack community by a force including 300 Hungarian prisoners [sic].
I stated that personnel of the board would undoubtedly inspire confidence on account of standing and experience both parties. Probably the attitude of the American Government would be determined by considerations covering entire Russian situation. I asked whether in case a responsible authority emerged in Russia, the board could cooperate. Kolchak emphatically stated organization by Bolsheviks impossible, their principles incompatible with law and order.
Horvat to-day informed Stevens that [omission] had received financial support 1,000,000 yen from Japan. Military attaché is of opinion military action will meet with strong resistance and be unsuccessful without outside military assistance. He believes military operation by Allies purely for protection of their plan would meet with little or no resistance if properly explained.
If joint action by Allies in Siberia was possible controlling Semenov and giving railway board awkward [dominant] position, results [Page 148] would be better than if either they or Japanese alone gave exclusive support to the Harbin movement.
Repeated Tokyo.