861.77 Chinese Eastern/1336: Telegram

The Chargé in Japan (Neville) to the Secretary of State

212. My 211, September 24, 11 a.m.97 The Minister for Foreign Affairs informed me today that the news of the sale of the Chinese Eastern Railway, for 170,000,000 yen was correct. He said that a few details connected with physical transfer of the road and the settlement of financial matters remained, but the basic question had been agreed upon.

Thirty million yen of the 170,000,000 represents retirement allowances for the old Russian personnel and some other obligations of the railway which the “Manchukuo” authorities would assume. Approximately one-third of the remaining 140,000,000 would be paid in cash as a lump sum or in installments, while the rest would be paid in kind, the Japanese and “Manchukuo” authorities setting up a credit for Soviet purchases in Japan and Manchuria.

Repeated to Peiping.

Neville
  1. Not printed.