861.77 Chinese Eastern/562: Telegram
The Chargé in China (Perkins) to the Secretary of State
[Received December 4—11:25 a.m.]
1078. My 1069, December 3, 1 p.m. Following from American Consul, Harbin:
“December 3, 1 p.m. Tsai and Li en route to Habarovsk where it is expected that they will discuss with Soviet representatives technical questions connected with points (1), restoration of status quo ante, and (3), release of Soviet prisoners, and that with reference to point (2) [Page 386] regarding managers temporary [sic] attempt to persuade Soviet representatives to select new general and assistant managers instead of Emshanoff and Eismont in exchange for which president of board of directors Lu Jung-huan will be relieved of his post. I believe actual putting into effect of terms proposed by Moscow and accepted by Mukden will depend upon Young Marshal and resistance to pressure which is being or will be brought to bear on him by Nanking officials, Kuomintang and young Mukden party. It is believed here that any hesitation on his part will be followed by further Soviet aeroplane raids which have done little actual damage as regards loss of life and destruction property but which have been effective in demoralizing the Chinese forces and turning them into a rabble of indiscriminate looters.”
“December 3, 5 p.m. Unconfirmed reports state that Tsai and Li have recrossed frontier and are on their way back to Mukden via Harbin.”