CHINESE EASTERN RAILWAY. In 1895 there was formed, under Russian charter, but with a predominance of French capital and with some capital owned by the Chinese Government, the Russo-Chinese Bank. When, in 1896, Russia obtained from China permission to shorten the Trans-Siberian railway by build ing a line across Northern Manchuria, the bank formed the Chinese Eastern Railway Company. Only Russians and Chinese were to be shareholders, and a Chinese appointed by Peking was to be president. After 8o years the line was to revert to China free of charge, or the Chinese Government might purchase it at the end of 36 years. The original board of directors was entirely Russian, and the capital stock was all owned by the Russo-Chinese Bank. 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 from Harbin to Port Arthur and Dairen (Dalny). The roads so provided for were completed in 1905 and for that purpose the Russian Government advanced about 800,000,000 roubles. 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 was amalgamated with the Northern Bank to form the Russo-Asiatic Bank, and the new in stitution became heir of the Russo-Chinese Bank's interest in the Chinese Eastern railway. The new bank had a Russian charter, but the majority of its stock was in French hands. The Chinese Government remained a part owner. In 1915 an agreement was formed for the operation by the Chinese Eastern railway of the short private line connecting Tsitsihar and the main line, and in March, 1916, an agreement was entered into by the Russo-Asiatic Bank and the Chinese Government for the building of a line from Harbin to Blagovyeshchensk with a branch from Mergen to Tsitsihar. In a treaty of July 3, 1916, Russia ceded to Japan 6om. of the Chinese Eastern railway between Changchun and the Sungari river.
The Railroad and the War.—The World War and the Rus sian revolution and the consequent disintegration in Siberia threw the traffic and finances of the railway into confusion.
In pursuance of the Chino-Japanese military agreement of 1918, made after China entered the World War, Japanese troops appeared in the Chinese Eastern railway zone. Largely at the in sistence of the United States, and to save the line from the Japa nese, an international, interallied commission was appointed to operate the road. This control lasted until 1922. The Chinese saw in the disturbed conditions an opportunity to extend their control over the railway, and beginning in 1920 for a time suc cessfully asserted themselves.
At the Washington Conference in 1921-22, a resolution was adopted stating that better protection should be given the railway, that the personnel should be more carefully selected, and the funds more economically used. The Powers other than China also made reservations under which the consular body in Harbin inter fered when in Aug. 1923 the Chinese attempted to seize the land department of the railway.
The 1924 Agreement.—The Russo-Chinese agreement of May 31, 1924, contained a long article which, among other things, had an assurance that China might buy back the railway and a pro vision for a conference to settle more definitely the future of the road. Simultaneously, another agreement was adopted for the joint administration of the railway pending the final adjustment.
In July 1929, sharp dissension culminated in the seizure of the road by the Chinese.
A Russian invasion, however, compelled the restoration of the status quo.
After the establishment of the Japanese-dominated State of Manchoukuo relations between the joint owners became strained. To remove the friction, negotiations were begun in 1933 for the sale of Russia's share. These resulted in an agreement, Sept. 19, whereby Manchoukuo was to pay the equivalent of 140, 000,000 yen (I yen=$.4985 at par), one-third in cash and the remainder in kind. The transfer was completed March The road was renamed the North Manchurian railway and became part of the system operated by the (Japanese) South Manchuria Railway Company. (K. S. L.)