861.77 Chinese Eastern/331
The Ambassador in Germany (Schurman) to the Secretary of State
[Received September 16.]
Sir: In connection with telegrams No. 159 and No. 160 of August 30, I have the honor to report that the German Foreign ofiice has no confirmation so far of a Reuter despatch from Shanghai that the Nanking Government finds unacceptable the Russian answer to the [Page 314] recent Chinese proposal for a settlement of the Chinese Eastern Railway conflict.
At the Foreign Office the feeling still exists that the way toward settlement has been definitely opened and that a settlement will in due time come, though it is anticipated that the actual negotiations, when they begin, will be difficult and protracted.
One of the principal officials concerned expressed to a member of the Embassy his personal conviction that a settlement had been greatly forwarded by the American proposal of July 25. The Russians, as well as the Chinese, were made to realize that other Powers were concerned and that, if a direct settlement was not accomplished fairly soon, outside pressure might develop which it would be difficult to resist. In particular the Soviets at once felt the political necessity of arriving at a direct accommodation with the Chinese so that their pacific purpose and diplomatic enterprise should not in any way seem less than that of the “capitalist world”. The American initiative had thus disposed the Russians to accept much more readily than would otherwise have been the case the advances made by the Chinese.
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I have [etc.]
Counselor of Embassy