861.77/2615a: Telegram
The Secretary of State to the Ambassador in Great Britain (Harvey)
209. Please bring informally to the attention of the Foreign Office the following draft of a confidential memorandum to the Powers [Page 906] concerned relating to the Chinese Eastern Railway and say that in view of the close cooperation in this matter between the British and American Governments I should be glad to have their comments on the action proposed. A similar preliminary inquiry is being made of the Japanese Government.
Draft follows:
“The impending withdrawal of Japanese troops will definitely terminate the interallied railway agreement of January, 1919. The United States values very highly the international cooperation which was brought about by that agreement and feels that the agreement should not be allowed to lapse without a common understanding being reached as to future action.
The stated purpose of the 1919 agreement was temporarily to operate the Chinese Eastern and Trans-Siberian Railways in the interest of the Russian people with a view to their ultimate return to those in interest without the impairing of any existing rights. The Governments of Japan and the United States and to some extent other governments have expended money and material in aid of the maintenance and operation of the railway. It is a matter of general concern that the railway should continue to exist as a free avenue of commerce and to be operated efficiently.
These considerations induced the representatives of the Powers other than China at the recent Washington Conference to consider and support measures for a continued general supervision of the affairs of the Chinese Eastern Railway, but China, resting upon sovereign rights, objected to the proposals made. The result was the adoption of the following resolution: ‘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.’ At the same time the Powers other than China adopted the following: ‘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 nonperformance 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.’
Having regard to the foregoing facts the Government of the United States desires to propose that the Powers concerned proceed in the near future to the winding up of the Inter-Allied Committee and the Technical Board created by the 1919 agreement and that the Powers other than China adopt a common course of action in that connection, to-wit: That those Powers should confirm the resolutions above quoted relating to China’s responsibility; that they [Page 907] should, so far as there may be occasion, reserve all rights with respect to advances in money or material made in aid of the railway; that they reaffirm their concern in the preservation of the railway, its efficient operation and its maintenance as a free avenue of commerce open to the citizens of all countries without favor or discrimination; that they inform the Chinese Government that they purpose to continue to observe carefully the administration and operation of the railway and the manner in which China discharges the responsibilities which she has assumed; and that they apprise the Chinese Government at the same time of their entire good will and readiness to assist or cooperate at any time in any practicable way; with a view to conserving the railway property and assuring efficient operation in the interest of all concerned.”