893.00/10–346: Telegram

The Ambassador in China (Stuart) to the Secretary of State

1577. [For Penfield from Bayne.15]

1.
Fortnight ago Soviet Consul General in Sinkiang began conversations with Chinese Provincial Governor requesting on a “basis of realities” concessions to Soviets of all mineral and petroleum rights in the province. Provincial Governor referred the matter to Executive Yuan. Soong asked Wong Wen-hao16 to advise the Generalissimo that such discussions should be conducted at the Central Government level.
2.
Soong believed, Wong advised me, that a stronger front could be made against the Soviets’ demand in Sinkiang if brought out into government to government basis. This opinion based on experience [Page 1210] between local and national discussions on Manchurian affairs last winter.
3.
Wong believes Generalissimo wavering toward appeasement so long as sovereignty is not affected and may allow the negotiations to continue on a provincial basis, probably eventuating in major concessions. [Bayne.]

Stuart
  1. This notation appears on copy in Marshall Mission files. James K. Penfield was Deputy Director of the Office of Far Eastern Affairs, and E. A. Bayne was an American official loaned as special assistant on reparations matters to the President of the Chinese Executive Yuan (Soong).
  2. Vice President of the Chinese Executive Yuan and President of the Chinese War Production Board.