[Inclosure.]
memorandum.
On the 2d of October their excellencies the viceroy of Manchuria and
the governor of Fengtien signed, with the representatives of the
American banking group and Pan ling & Co., an English firm, an
agreement providin for the financing, construction, and operation of
a railway from Chinchow to Aigun. The Government of the United
States is prepared to support and facilitate this enterprise, which
it believes would greatly contribute to the progress and the
commercial development of China.
There are already in operation in Manchuria three separate and
distinct railway systems, under Russian, Japanese, and Chinese
direction. The cooperation between these three systems is not so
close, nor are the economic benefits derived from their operation so
great, as would be the case if all were under the same
administration. Political questions have also arisen in connection
with the contracts under which certain of these railways are
operated. It seems; therefore, to the Government of the United
States that perhaps the most effective way to preserve the
undisturbed enjoyment by the Chinese Government of all political
rights in Manchuria and to promote the development of those
Provinces under a practical application of the policy of the “open
door” and equal commercial opportunity would be to bring the
existing and contemplated Manchurian railways under an economic,
scientific, and impartial administration by some plan vesting in
China the ownership of the railways through funds furnished for that
purpose by the interested powers willing to participate.
The loan necessary for this purpose should be for a period ample to
make it reasonably certain that it could be met within the time
fixed and should be upon such terms as would make it attractive to
bankers and investors. It would also be provided that nationals of
the participating powers should supervise the railroad systems
during the term of the loan, and the governments concerned should
enjoy for such period the usual preferences for their nationals and
materials upon an equitable basis among themselves.
The execution of this plan would, of course, require the cooperation
of China and of Japan and Russia, the reversionary and
concessionaries, respectively, of the existing Manchurian railways,
as well as that of Great Britain and the United States, whose
special interests are in connection with the contemplated
Chinchow-Aigun Railway.
It is scarcely necessary to point out to the Imperial Chinese
Government the immense advantage to China which would result from
the plan above proposed. The ownership of all lines in Manchuria
would become vested in China and with such investiture all political
questions which have arisen in connection with lines now in
operation or in course of construction would be definitely settled.
The Manchurian railways being thus welded into one system would
become a vastly more efficient agency in the commercial, industrial,
and agricultural development of those Provinces.
The Government of the United States would learn with pleasure that
this project meets with the favorable consideration of the Imperial
Chinese Government.
