861.77 Chinese Eastern/1161: Telegram

The Minister in China (Johnson) to the Secretary of State

384. Following from Consulate General, Harbin:

“April 27, 5 p.m. Responsible Japanese official here states that he has reason to believe that Koiso is conducting negotiations looking to purchase of Chinese Eastern Railway.

Soviet railway officials state that they have no information on the subject and appear inclined to discredit reports. Soviet consular and railway officials continue to minimize the importance of controversy while Japanese-Manchukuo faction threatens drastic action if demands for return of rolling stock are not complied with.

Disorders continue on eastern line of Chinese Eastern Railway.”

Johnson