MS 1603.6+2600: an accretion disc corona source?

We have observed the eclipsing low-mass X-ray binary MS 1603.6+2600 with Chandra for 7 ks. The X-ray spectrum is well fit with a single absorbed power law with an index of ～2. We find a clear sinusoidal modulation in the X-ray light curve with a period of  1.7 ± 0.2 h  , consistent with the period of 1.85 h found before. However, no (partial) eclipses were found. We argue that if the X-ray flare observed in earlier X-ray observations was a type I X-ray burst, then the source can only be an accretion disc corona source at a distance of ～11–24 kpc (implying a height above the Galactic disc of ～8–17 kpc). It has also been proposed in the literature that MS 1603.76+2600 is a dipper at ～75 kpc. We argue that, in this dipper scenario, the observed optical properties of MS 1603.6+2600 are difficult to reconcile with the optical properties one would expect on the basis of comparisons with other high-inclination, low-mass X-ray binaries, unless the X-ray flare was not a type I X-ray burst. In that case, the source can be a nearby soft X-ray transient accreting at a quiescent rate, as was proposed by Hakala et al., or a high-inclination source at ～15–20 kpc.