861.77/2921

The Minister in China (Schurman) to the Secretary of State

No. 1176

Sir: With further reference to the Department’s telegram No. 253 of October 27, 4 p.m., 1922, containing the text of a note for delivery to the Ministry of Foreign Affairs on October 31st regarding [Page 930] the affairs of the Chinese Eastern Railway, I have the honor to transmit herewith for the Department’s information a copy of the reply thereto from the Minister for Foreign Affairs, dated November 25, 1922.

I have [etc.]

Jacob Gould Schurman
[Enclosure—Translation]

The Chinese Minister for Foreign Affairs (Wellington Koo) to the American Minister (Schurman)

No. 307

Sir: The receipt is acknowledged of Your Excellency’s note (No. 213) dated October 31st, 1922, regarding the termination of the Inter-Allied Committee and the Technical Board. On receipt thereof (his Ministry communicated the matter to the Ministry of Communications for consideration and reply. A communication has now been received stating as follows:

“Since the Washington Conference this Government has exercised very great care in the selection of the officials of the Chinese Eastern Railway. Also, as regards the Russians employed on the railway, those employed as Superintendents and engineers and above are recommended by the Board of Directors, and also their qualifications must be carefully examined by this Ministry in order to determine whether or not they are competent before they are appointed. As regards the expenses of the railway, this Ministry has several times written to the Director General that he should see to it that the entire expenses of the road should be comprised in the budget, and that all expenditures which might be reduced and all work except the most urgent should be examined and reduced. During the present year the total saving in expense amounted to Rubles 3,857,000. The budget for the present year compared with last year shows a saving in expenditures of 13 per cent. Moreover the business of the railway since its reorganization has increased daily. Not only have very gratifying results been achieved in the technical and financial phases of the railway, but the rolling stock for the conveyance of goods and passengers has been sufficient to meet the demands of the traffic. Moreover, the average speed of trains has been increased; the locomotives and rolling stock during the year travelled a greater distance; the horse-power of the locomotives and the carrying capacity of the freight cars was increased; delays and accidents decreased; passenger cars and stations were thoroughly repaired and cleaned. These are all evidences of progress. As a consequence the business of the Railway has increased daily. The net profit for the year 1921 amounted to Rubles 2,030,875, as compared with an estimate of Rubles 9,708. This is an increase of Rubles 2,021,167.

In addition to the above, the methods for protection of the railway were also considered, and the Commander-in-Chief for the Protection of the Railway has taken strict and adequate measures for the protection of the entire line.”

[Page 931]

This Ministry has to state that at the Washington Conference last year, the Chinese delegates stated that the legal position of the Chinese Eastern Railway had been clearly stated in the various agreements made between China and Russia. As to the trust, the extent of the responsibilities which China assumed were merely those which were formerly exercised by the former Russian Government according to its agreements with China, and which are now exercised by China as a provisional measure because of the absence of a formally recognized Russian Government.

Being now in receipt of the reply from the Ministry of Communications, I have the honor to communicate it to Your Excellency and would request that you will kindly take note thereof.

With compliments.

Seal of the Ministry of Foreign Affairs