Memorandum to the Russian Embassy.
Washington, February 26, 1910.
In reply to the aide-mémoire left at the department on February 21, 1910, the Secretary of State has the honor to inform his excellency the Russian ambassador that the original preliminary contract for the Chinchow-Aigun Railway, signed on October 2 last and later ratified by the Imperial Chinese Government, provides for the construction and financing by British and American interests of a fine, in sections, from Chinchow to Tsitsihar and thence to Aigun, at an approximate cost of £6,000,000. Provision is also made for the admission of other associates in the enterprise with the consent of the Chinese Government, in connection with which fact it will be recalled that from the beginning the Government of the United States has expressed itself as favorable to arrangement, at the proper time, for due participation by Russia and other interested powers.
The loan is to bear interest not to exceed 5 per cent per annum, guaranteed by the Chinese Government, and the usual preferences as to engineers and the purchase of materials are also reserved. There is likewise an important provision for future revision by detailed agreements of such points as it may be decided to reconsider. Under this provision, for example, the details of financing and construction are to be revised and elaborated in a separate agreement.