861.77/2618: Telegram
The President of the Technical Board (Stevens) to the Secretary of State
[Received 11:22 p.m.]
Department’s telegram of July 17, 3 p.m. I regard developments as disastrous to foreign commerce and to Chinese Eastern Railway. See my July 8, 6 p.m., and July 12, 2 p.m.77 Attempt to float bonds has completely failed. End of resources is voluntarily admitted by the Russo-Asiatic Bank and by the general manager of the Chinese Eastern. I conferred with them at their request. They say that unless there is financial assistance from outside the Chinese Eastern must struggle along and suffer the fate of other Russian lines sooner or later. In reply to their inquiry regarding possibility of foreign loan pointed out that at the Washington Conference material assistance was prevented by opposition from the Chinese and from the bank. I told them that I rather felt that they had passed up a favorable chance but that I would recommend a loan under proper conditions, the chief one of which for the protection of investors would be complete financial control, tariff rates included. The Russo-Asiatic Bank claims to be willing to accept any fair arrangement not impairing the treaty of 1896 in any of its provisions. Without doubt the Chinese Government’s attitude is hostile. … The Russo-Asiatic Bank is going to give written statement of their views. I do not like to be thought insistent, but since the conference at Changchun78 it is no longer possible to maintain “open door” unless steps are taken by the Powers. It is a myth to think that Chinese Government can be held responsible for anything in Manchuria.
Legation informed.