DANGEROUS THREAT

Dominion, Volume 26, Issue 185, 3 May 1933, Page 9

DANGEROUS THREAT

Ownership of Chinese Eastern Railway WORLD-PEACE IMPERILLED <By Telegraph.—Press Assn.—Copyright.) London, May 1. The “Manchester Guardian’s” Moscow correspondent says that Soviet aeroplanes flew near the Manchukuo boundary for the first time since the Sino-Russian conflict in 1929. Manchukuo officials openly challenge the Soviet’s sole ownership of the Chinese Eastern railroad'. The Soviet retorted with an impassioned statement defending their ownership and charging Manchukuo with deliberately trying to undermine the entire structure of the treaties on which the joint administration of the railroad rests, instancing the seizure of Soviet rolling stock and violence against Soviet employees. The Soviet considers the situation the most dangerous throat to world peace since the invasion of Manchuria. NO NEED FOR ALARM Official Japanese Viewpoint SHANGHAI LESS OPTIMISTIC (Received May 2, 7 p.m.). Toiiio, May 1. Officials belittle the alarmist' reports > from Harbin in regard to the Mancini- I kuo-Sovlet dispute threatening to de-: velop into a situation endangering pea ce. A spokesman to the Press stated that serious trouble was unlikely. Manchukuo is asking for amendments to the Chinese Eastern Railway agreement because the Soviet has prevented Manchukuo officials from equitable participation in the management. A Shanghai message says that Manchukuo has given the Soviet until May 10 for the return of locomotives and rolling stock. The Soviet announces its determination not to accede to the ' request, consequently it is withdrawing the Soviet Customs branches at Manchuli and Pogranichnaya. Russian troops are showing some activity beyond Manchuli and aeroplanes are flying over Manchukuo territory. HISTORY OF THE LINE Built by Pre-Revolutionary Russia COMING OF JAPANESE Ever since the Russian revolution bus the Chinese Eastern Railway time and again focused the attention of the world, writes A. von Skerst, ex-chief foreign affairs officer, Chinese Eastern Railway, in the “Sydney Morning Herald.” Its history for the past nine years, since 1924. when, by agreement between China nnd Soviet Russia, it was placed under a joint Chinese-Soviet management, affords ample proof of the fact, that any condominium or any joint management of an enterprise by Europeans, and

Asiatics is bound to result in frictions and eventually lead to disaster —a question well worth studying for all those countries that are confronted by similar problems. The Chinese Eastern Railway was a property of pre-revolutionary Russia. When that collapsed, an interim regime was set up, with the assistance of an Inter-Allied Technical Board, presided over by Stevens, the famous American engineer. In 102-1 China recognised Soviet Russia and also Russian rights in regard to the Chinese Eastern Railway. The same continued to be regarded ns n property of the Russian (now Soviet) State, and only the management was placed into the. hands of a mixed board of directors, with equal numbers of Russian and Chinese members. But real authority over the technical running of the line remained in the hands of the general manager, who was to be u Russian (Soviet). Cancellation of Rights, The railway runs across Chinese —now Manchtikuo —-territory. At the time of its construction, when it was laid through a practically uninhabited wild country, it was granted a number of privileges, such as are usually given to colonising pioneer lines. During the interim regime and ever after-—Soviet Russia being much weaker than Imperial Russia had been in the Far East—-the Chinese local authorities did all possible to shear the railway of its prerogatives and to despoil it of its property. Administrative, police, educational, and other rights were cancelled, the river flotilla, the real estate in cities and along the line confiseat--ed. the telephone exchanges seized, the operation of forest and mining concessions interfered with and rendered almost impossible. More than that, the Chinese refused to pay for the transportation of their troops over the railway, though bv agreement they were hound to do so. And the latter amounts accumulated more and more, because military transportation would also cover the transportation of the relatives of the members of the Chinese lighting forces, of their goods and chattels, and in ! 'act of anything the Chinese military command would think lit to cover with its flag. In 1926 the patience of the Soviet general manager. Ivanoff. was exhausted, and he suspended the operation of part of the line, pending the payment of Chinese transportation dues This was just at the height of a mutinous outbreak In Manchuria itself. Ivanoff was arrested. but released under threats from Moscow. Since then, the question of payment for transportation had been temporarily nut out of the wav by debiting

the outstanding amounts provisionally to a special account. In 1929 the Chinese thought the time ripe for definitely ousting the Soviet. The general manager, Emshanoff, and all the leading Soviet Russians on the stall of the railway were arrested and deported. or put into concentration camps. After months of fruitless negotiations Red troops were moved against. _ Manchuria; the Chinese fled ignominiously, and the status quo was restored, Moscow appointing as general manager J. \. Roody, a man known for his ruthless and cruel’ tactics in re-establishing order on the railways in Russia after the revolution. Another two years lapse, in come the Japanese, and a new regime is set up. Manchukuo appointees taking the seats on the board of the Chinese Eastern Railway. Now, as was mentioned above, the Chinese Eastern Railway is a property of the Russian State. During the civil war

in Russia huge quantities ot_ rolling stock had accumulated on the lines of the Chinese Eastern Railway, all of them ot Russian origin, and in any case also the property of the Russian State. The >’?[>• way. which has a mileage of over 11 0 miles, saw itself in possession of over Wo locomotives and well over 10,000 freight cars, nil this much in excess of actual requirements. This stock, part of winch was very much dilapidated, having gone through all the spoliations of the civil war. was put into good condition ami complete repair mainly at the time of the interim regime—namely. even before there was any official Chinese governmental participation in the management of the line. These repairs were effected at the expense of. the railway—out of funds, which, in normal times. would have had to be remitted to the Russian Government. 11 was in order—the railway repaired Russian State property, just as it did repair and improve its permanent way. bridges, buildings, etc. Invasion of the Japanese. At the time of the Japanese invasion, when trouble began to develop in North Manchuria as well, large numbers of the abovc-meut locomotives and cars, which for years already had been kept in depots not far from the Soviet boundary, were sent across it. This could only have been done with (lie consent of the then Chinese authorities, because it, was their troops and poliec that kept watch over these boundaries. Now a new regime has been set up in Manchuria under Japanese protection. From the very beginning the old trouble over payments for troop transportation seems to have arisen again. But with any goodwill on both sides this matter could easily be settled, ns it has been settled before. Nor is the question of the rolling stock so very serious “per sc.” 11 never was the property of the Chinese Eastern Railway, and naturally still less could it be claimed by the Manchtikuo Government. But if I iris claim is now being put forward and. apparently, backed by Japan, then it would look very much as if tlte latter country was seeking a pretence for taking action against. Soviet Russia and ousting her not only from the remnant, of her once brilliant position in North Manchuria, but from the other Soviet possession in the Far East as well. It has been said that in addition to the buffer State in Manchuria. Japan inI tends setting up another in Siberia. A war is doubtful—-the Kremlin is much 100 scared of the idea even. But any serious reverse in foreign politics, even without, war. may bring about serious changes in Russia itself.