File No. 861.77/373

The Chairman of the Advisory Commission of Railway Exports to Russia (Stevens) to the Secretary of State


Decision to send Emerson and men to advise with Soviet European Russia places us in very embarrassing position. The new administration Chinese Eastern are bitterly anti-Soviet. My opinion is that principal object of its reorganization is to provide stronger means for fighting Soviet, even by force of arms. We are thus placed in impossible situation of trying to help two bitterly opposing [factions?] with the usual result facing us [of] antagonizing both. To retire now from Chinese Eastern, which I apprehend we will be told to do when Vologda movement becomes known, will be to play directly into hands of Japan, which is opposing us all the time undoubtedly with the view of controlling entire transportation systems of Manchuria. I should have quick and ample instructions as I regard the situation as extremely delicate.