Chargé Fletcher to the Secretary of State.

[Extract.]
No. 1347.]

Sir: In continuation of the subject of the neutralization of the Manchurian railways and the Chinchow-Aigun Railway negotiations, I have the honor to report that the day following my call upon Duke Tsaitse, the president of the board of finance, I received from him a very polite note, a translation of which I inclose, informing me that the memorial recommending approval of the preliminary agreement would be presented in two or three days. This was confirmed by Mr. Liang Tun-yen in a conversation at the Wai-wu Pu on Tuesday, the 18th instant.

On the following morning, January 20, the memorials of the boards of foreign affairs, finance, and communications, recommending, as I was given to understand, the ratification of the preliminary agreement and instructing the viceroy to prepare a detailed agreement which would obviate some of the objections made to the preliminary contract, were presented to the Throne and received the imperial sanction.

This information I telegraphed the same evening, but as Mr. Liang, by reason of illness in his family, was not at his office I could not give any details.

On the 21st I received a formal note from the Wai-wu Pu, translation of which I inclose, and of which I telegraphed the substance to the department. As the note of the Wai-wu Pu, unintentionally, I believe, failed to state explicitly that the memorials referred specifically to the preliminary agreement, and as the memorials contain matter which it is desired to keep secret, I thought it best to elicit from the Wai-wu Pu a definite statement on the subject. Upon receipt of the department’s telegraphic approval of this course, I prepared the inclosed note to the foreign office and yesterday called on Mr. Liang Tun-yen at his house. I explained to him that for the sake of clearness and to prevent any possible misunderstanding in the future I would, inasmuch as his note did not state explicitly that the edict ratified our preliminary agreement, address to him the note which I then read, and asked him if he could give me a definite reply. He said that he was sorry he had not stated in his note to me that [Page 253] the memorials referred to the preliminary agreement; that of course such was the case, otherwise why would they communicate to me the edict, etc. I replied that we understood this to be so, but that as it did not appear clearly it would be better to have it definitely stated. He promised to reply in this sense to my note.

I have made it perfectly clear to the officials of all the boards with whom I have discussed the proposals of the United States that we fully rely upon the hearty support and cooperation of the Chinese Government in our efforts in their behalf and have in turn been assured of China’s appreciation and readiness to do all in her power.

In connection with the subject of this dispatch I inclose copies of two reports made to the board of posts and communications by James Ginnell, Esq., a civil engineer employed by Pauling & Co., on the subject of the proposed Manchurian railways.

I have, etc.,

Henry P. Fletcher.
[Inclosure 1.]

Duke Tsaitse to Chargé Fletcher.

Dear Sir: I was very favorably impressed by our conversation of yesterday, and I had a conference with the officials of the Wai-wu Pu this morning, repeating to them what you had said. A memorial will be presented to the Throne within two or three days on the subject of our conversation (or in the line of our conversation) and I was requested to inform you of this fact.

With best wishes, etc.,

Tsaitse.
[Inclosure 2—Translation.]

The Prince of Ching to Chargé Fletcher.

Your Excellency: It is on record that the viceroy of Manchuria and others have memorialized, asking permission to make a foreign loan to build by installments a railway from Chinchow to Aigun. The board of foreign affairs consulted with the boards of finance and communications and it was agreed to sanction the proposal. A memorial stating specifically that this sort of agreement should be drawn up in careful detail was sent in to the Throne on the tenth day of the twelfth moon of the first year of Hsuan-t’ung (Jan. 20, 1910)., and the vermilion rescript “Let it be as decided” was reverently received. Besides instructing the viceroy concerned to act accordingly, this dispatch is now sent for the information of your excellency.

A necessary dispatch.

[seal of the wai-wu pu.]
[Inclosure 3.]

Chargé Fletcher to the Prince of Ching.

Your Imperial Highness: I have the honor to acknowledge the receipt of your highness’s polite note of the 21st instant informing this legation that: [Here follows text of note from Prince of Ching to Mr. Fletcher, Jan. 21, 1910.]

I have taken much pleasure in communicating this intelligence to Washington.

The legation has not before it copies of the memorials mentioned in your highness’s note, but my Government takes it for granted that the imperial rescript recently [Page 254] issued refers specifically to the preliminary agreement for the construction, etc., of the railway from Chinchow to Aigun signed on October 2 last, between their excellencies the viceroy of Manchuria and the governor of Fengtien and the representative of the American banking group and Pauling & Co.

This preliminary agreement, as your highness is aware, contains provision for the preparation of a detailed agreement satisfactory to all parties, and I shall therefore, if your highness’s reply confirms my Government’s understanding of the purport of the imperial rescript mentioned in your highness’s note, advise the representative of the American banking group to hold himself in readiness to consult at the proper time with their excellencies the viceroy of Manchuria and governor of Fengtien with regard to the detailed agreement to be prepared in accordance with the imperial command.

I avail myself, etc.

Henry P. Fletcher.