STRAINED RELATIONS

Nelson Evening Mail, Volume LXVI, 3 September 1934, Page 5

STRAINED RELATIONS

CHINESE EASTERN RAILWAY SOVIET AND JAPAN ADDITIONAL FUEL TO INFLAMMABLE SITUATION •United Press Association— By Electric Telegraph-Copyright) SHANGHAI, Ist September. Two American passengers and six Japanese were kidnapped after the train wreck described as one of the worst in tlie history of Manchuikuo. which occurred 26 miles south qf Harbin. A Japanese armoured car and troops have been dispatched to the scene, and are now attempting to overtake the bandits. The Americans are Mr Johansen and Mr Lury, both representatives of the Metro-Goldwyn-Mayer Film Corlioration. Their companion, Mr James Russell, who escaped, said that when he realised that bandits were attacking the train, he locked the compartment and threw himself to the floor while a hail of bullets was pouring along the entire coach. “The bandits attempted to smash my compartment with their rifle butts, but did not succeed, while I lay shivering, fearing death at any moment.” Railway guards apparently attempted to hold off the attackers, but were vastly outnumbered. Several small red flags, also brassards, inscribed “Friend of the Soviet,” were found on the scene, which entrenchments along the line indicated careful preparations for the outrage! The wrecking has added additional fuel to the already highly inflammable and strained situation between the Soviet and the Japanese regarding the sale and future control of the Chinese Eastern Railway. ANOTHEROUTRAGE TWO PEOPLE KILLED Another bandit outrage on the Chinese railway was reported to-day, when a train was derailed by the usual methods. Details are lacking, but it is stated that a Russian engineer and a Chinese fireman wore killed. PROTEST TO JAPAN TREATMENT OF RUSSIAN PRISONERS INHUMAN TORTURES ALLEGED RIGA, 2nd September The Soviet las handed the Japanese Ambassador a note protesting against the inhuman tc-rtures to which Russian prisoners in Manchuria are allegedly subjected. The note requested determined steps to prevent a continuance. In 1896 the Chinese Eastern Railway Company was formed to build a line across Northern Manchuria, 'to shorten the trans-Siberian Railway. The company was arranged in agreement with the Russo-Chinese Bank, with only Russians and Chinese as shareholders, and a Chinese appointed by Peking, as President. After 80 years, the line was to revert to China free of charge, or the Chinese Government might purchase it at the end of 36 years. In 1898 a convention between China and Russia provided for the construction by the company of the South Manchurian line of the‘Chinese Eastern Railway "ffbih Port Arthur And Dairen. In 1905, as a result of the Russo-Japanese war, the South Manchurian Railway, south of Changchun, passed into the hands of Japan. In 1910 the Russo-Chinese Bank amalgamated with the Northern Bank to form the Russo-Asiatic Bank, which became heir to the Russo-Chinese Bank s interest in the Railway. The new bank had a .Russian charter, but most of its stock was French. The Chinese Government remained a part owner. In a treaty in July, 1916, Russia ceded to Japan 60 miles of the Chinese Eastern Railway between Changchun and the Sungari river. The Great War brought a strain on the railway, through the heavy and interrupted traffic and the depreciation of the rouble. Then came the Russian revolution, the Bolshevist coup d’etat, and disintegration in Siberia. With this disorder the railway’s finances suffered and a meeting was called to appoint new directors. In the meantime, China entered the world war 1917 v and in 1918 signed an agreement with Japan for military co-operation. In pursuance of this agreement, Japanese troops appeared in the Chinese Eastern Railway zone. The Chinese saw, in the disturbed conditions in the north, an opportunity to extend their control, and in 1920 appointed three Chinese to vacant posts on the directorate. The Russo-Asiatic Bank, supported by the French Government, protested against this action. Negotiations were made, and in 1920 an agreement signed provided temporary Chinese control-under a directorate, five of whom were to be elected by the bank, and four by the Chinese Government. At the. Washington Conference in 1921-2 the railway came up for discussion, but the Chinese representatives could not agree with those of the Powers. All accepted a resolution stating that) better protection should he given to the railway, the personnel should be more carefully chosen, and the iunds more economically used; but the Powers other than China reserved the right to insist later upon tlie responsibility of China for fulfilment of obligations due to foreign stbok holders and creditors. Under this reservation the consular body at Harbin interfered when in 1923 China attempted to seize tlie land department of the railway. In 1924 the Soviet Government began negotiations with China, and the railway was one of the chief topics. The agreement of May, 1924, by which normal diplomatic relations were resumed between China and Russia, contained an assurance that China might, buy hack the railway, and a clause which said the future of tile railway would be decided by the two contracting parties to the exclusion of any third party. Early in J 926 trouble arose between the Soviet Government and Chang Tsoiin, over the transport of troops on tlie railway. M. Ivanoff. the Soviet general manager, with the alleged design of preventing an advance of Manchurian troops into Chihli against Kuo Min Chun forces, closed the railway to the free use of the military. He was arrested by Chang, but soon released and an agreement patched up.