The above railway map shows the situation which has developed in Manchuria since Japan occupied the country and later set up the government of Manchukuo. Japan's purposes are revealed as twofold: one, to open up the country and tie it closely to Japan; two, to provide security for the new state of Manchukuo against outside attack, at the same time, perhaps, laying a basis for a counter-offensive through Manchuria in case of Russo-Japanese hostilities.

The line from the new capital of Hsinching to the Korean port of Yuki has been completed since the Japanese occupation of Manchuria in 1931. It greatly shortens the route to northern Japan; the haul from Hsinching to Osaka is reduced by 460 miles.

Three lines are now under construction: Peipiao-Jehol, Taoan-Solun and Lafa-Harbin. The latter parallels the southern branch of the Chinese Eastern and might be given up if the Russians sell their lines to Manchukuo. Several other lines are projected, all of strategic importance. Three (Solun-Manchouli, Hailun-Heiho, and that from the Muling Colliery to the Ussuri River) would cut the Trans-Siberian at strategic points. The line Peipiao-Hsifeng would open a way into Mongolia.

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