701.9411/768
Memorandum by the Under Secretary of State (Phillips)
The Japanese Ambassador came in to say that he had now returned to Washington after a three months’ holiday.
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The Ambassador mentioned in passing the negotiations with Russia over the sale of the Chinese Eastern Railway; said that it was purely a matter of price-fixing and that the two governments were still far apart in arriving at a satisfactory price; there was no possibility of armed conflict inasmuch as the Chinese Eastern Railway was entirely under the control of the Japanese which left very poor means of transportation to the Russians over their northern route.