861.77 Chinese Eastern/36: Telegram
The Minister in China ( MacMurray ) to the Secretary of State
589. Legation’s 585, July 18, 3 p.m.
1. Text of Soviet declaration severing relations with China has been received in Peking.
2. Official in chargé of the Soviet Embassy has informed one of the foreign press correspondents that he interprets this declaration as the equivalent of instructions to be prepared to withdraw from Peking and is in turn instructing Soviet consular officials in North China to prepare for departure.
(There are two or three Attachés of Soviet Embassy here who have remained since raid on Russian premises in the Legation Quarter in 1927 performing passport and other consular functions.)
Soviet Embassy estimates that there are about 150,000 Soviet nationals in China of which number some 125,000 are in Manchuria.
3. Reports received in Peking indicate that the international train proceeding from Siberia due Manchouli on July 16th had not arrived; that large stocks of goods held by Russian nationals in Harbin and by Soviet official organizations are being disposed of, largely to Japanese at very low prices in the fear of confiscation by Chinese; also that troop movement[s] by both Soviet and Chinese forces are taking place.
4. There is great speculation concerning the precipitation of the present crisis by China in the absence of the Chang Hsüeh-liang from Mukden and of C. T. Wang from Nanking; one theory is that Chang Tso-hsiang and Wan Fu-lin took advantage of the absence of Marshal Chang from Mukden to act without his concurrence with a view to eliminating him from leadership in Manchurian affairs. It is suggested that if the Nanking Government had initiated or given its consent to the action taken, it would be difficult to account for the absence of both Wang and Marshal Chang from their posts at such a time.
5. Such foreign press comment in China as has come to the attention of the Legation is condemnatory of the Chinese position and apparently regards the present issue as a test whether China may or may not be held to any of her contractual obligations.
6. Mailing code text to Tokyo.
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