asked the Secretary of State for Foreign Affairs whether British concessionnaires are free to undertake railway construction in Manchuria under Chinese auspices; and whether the open door exists in Manchuria for all forms of engineering work?

Railway construction in Manchuria is subject to the China Consortium Agreement of 15th October, 1920, in all cases where the issue of loans for public subscription is involved. By this agreement the principle of complete equality is affirmed between the British, French, Japanese and American Bank groups; and the respective Governments will give their complete support to their national groups who are members of the Consortium. Railway enterprise connected with certain specified lines, notably the South Manchurian Railway and its branch lines, is outside the scope of the Consortium and is reserved for Japanese interests. Details of the arrangement will be found in Command Paper 1214 of 1921 regarding the new financial Consortium in China. With the above important exceptions the "open door" exists in Manchuria for all forms of engineering work.

Does that mean that outside the area specified by the right hon. Gentleman, British firms will be allowed to tender for Chinese railway construction, and that we have no arrangement with Japan to prevent British firms so tendering?

No, Sir, there has been no such arrangement with Japan outside certain specified lines, notably the South Manchurian Railway and its branch railways which are reserved to Japan.