Chargé Fletcher to the Secretary of State.

[Extract.]
No. 1358.]

Sir: In continuation of my No. 1348, of the 31st ultimo, on the subject of the Chinchow-Aigun Railway, I have the honor to report, as I have done by telegraph, that at my interview with Mr. Liang Tun-yen on Saturday, the 5th instant, he informed me that he had received what he characterized as identical notes from the Japanese and Russian ministers to the effect that in view of their interests China should consult with Japan and Russia before concluding the details of the Chinchow Railway agreement. I gathered that Japan based her claims to be consulted on the fact that the proposed road would parallel the South Manchurian Railway, while Russia considered that the crossing of their line at Tsitsihar and the approach toward their undefended frontier at Aigun gave her a special interest in the undertaking. I have called on both Mr. Korostovetz and Mr. Ijuin and explained to them that the agreement was merely a loan contract and in no sense a concession, and asked in what way-they wished to be consulted; that I felt sure such interests as they had would receive every consideration, but felt that it was reasonable to ask them to formulate their desires, as we had already broached the matter to their Governments and had been assured they found no objection in principle to the project. Mr. Ijuin said he had been instructed to inform China that it would be more friendly if China herself consulted Japan. He said that Japan did not intend to oppose the line, but merely wished to have more details.

I also explained the position fully to Mr. Korostovetz, who promised to correct some erroneous impressions of his Government and to ask for more definite instructions.

Mr. Max-Muller, the councilor of the British Legation, who, during the illness of Sir John Jordan, is in charge of the British Legation, called on me yesterday to say that he had been instructed to inform the Wai-wu Pu that his Government thought Russia should be consulted with reference to the Chinchow enterprise. I told him that I had already advised Mr. Liang in the same sense and that I hoped his representations would take such form as to leave no doubt in the mind of Mr. Liang that Great Britain was heartily in favor of the scheme. This he promised to do.

I have, etc.,

Henry P. Fletcher.