The Japanese not merely hold the South Manchurian Railway, but have a monopoly of railway construction in South Manchuria.  As this was practically the beginning of Japan’s control of large regions in China by means of railways monopolies, it will be worth while to quote Mr. Pooley’s account of the Fa-ku-Men Railway incident,[59] which shows how the South Manchurian monopoly was acquired:—­

“In November 1907 the Chinese Government signed a contract with Messrs Pauling and Co. for an extension of the Imperial Chinese railways northwards from Hsin-min-Tung to Fa-ku-Men, the necessary capital for the work being found by the British and Chinese Corporation.  Japan protested against the contract, firstly, on an alleged secret protocol annexed to the treaty of Peking, which was alleged to have said that ’the Chinese Government shall not construct any main line in the neighbourhood of or parallel to the South Manchurian Railway, nor any branch line which should be prejudicial to the interests of that railway’; and, secondly, on the Convention of 1902, between China and Russia, that no railway should be built from Hsin-min-Tung without Russian consent.  As by the Treaty of Portsmouth, Japan succeeded to the Russian rights, the projected line could not be built without her consent.  Her diplomatic communications were exceedingly offensive in tone, and concluded with a notification that, if she was wrong, it was obviously only Russia who could rightfully take her to task!

“The Chinese Government based its action in granting the contract on the clause of the 1898 contract for the construction of the Chung-hon-so to Hsin-min-Tung line, under which China specifically reserved the right to build the Fa-ku-Men line with the aid of the same contractors.  Further, although by the Russo-British Note of 1898 British subjects were specificially excluded from participation in railway construction north of the Great Wall, by the Additional Note attached to the Russo-British Note the engagements between the Chinese Government and the British and Chinese Corporation were specifically reserved from the purview of the agreement.

“Even if Japan, as the heir of Russia’s assets and liabilities in Manchuria, had been justified in her protest by the Convention of 1902 and by the Russo-British Note of 1899, she had not fulfilled her part of the bargain, namely, the Russian undertaking in the Note to abstain from seeking concession, rights and privileges in the valley of the Yangtze.  Her reliance on the secret treaty carried weight with Great Britain, but with no one else, as may be gauged from the records of the State Department at Washington.  A later claim advanced by Japan that her action was justified by Article VI of the Treaty of Portsmouth, which assigned to Japan all Russian rights in the Chinese Eastern Railway (South Manchurian Railway) ’with all rights and properties appertaining thereto,’ was effectively answered by China’s citation of Articles III and IV of the same Treaty.