761.93/1583

The Ambassador in the Soviet Union (Davies) to the Secretary of State

No. 22

Sir: I have the honor to enclose herewith a memorandum outlining such information as has recently become available in Moscow concerning the relations between the Soviet Union on the one hand and Far Eastern countries on the other.

It is hoped the Department will have no objection to the scope of these reports being extended to include Soviet relations with China as well as those with Japan and “Manchukuo.” All of these questions are so intimately bound up with one another that it is difficult to separate them. In view of Soviet penetration into Sinkiang and Outer Mongolia and the Soviet influence on the Chinese communist armies on the one hand, and Japanese domination of Manchuria and penetration into North China and Inner Mongolia on the other, Soviet-Chinese relations affect Soviet-Japanese relations at almost every turn.

Respectfully yours,

Joseph E. Davies
[Enclosure-Extract]

Memorandum Prepared by the Embassy in the Soviet Union

There has been little change during the last few weeks in the character of the Soviet attitude toward Japan or in the relations between the two countries. Nothing has occurred to diminish in any degree the disillusionment and bitterness occasioned in Moscow by the conclusion of the German-Japanese pact, and for the moment there are no immediate prospects of improvement in relations between the two countries. Moscow’s policy with regard to Japan and “Manchukuo” continues to be one of firm restraint in matters of diplomacy, and of continued preparation for war. The Soviet leaders have no desire to provoke a conflict at the present time and appear to be determined not to allow themselves to be provoked into a rash action.

In accordance with this policy, the Moscow leaders, after the publication of the German-Japanese pact, refused to proceed with the signing of the new long-term fisheries convention which had been negotiated before the German-Japanese agreement became known. On the other hand, when the Japanese threatened to carry on their fishing activities without any agreement at all and to employ the Japanese Navy for the protection of their fishermen, the Soviet Government refused to allow this threat to become a question of prestige and prudently agreed to prolong the old agreement for another year.

Meanwhile the situation along the borders of Outer Mongolia and the Soviet Far Eastern provinces has again become delicate and there [Page 22] has been a revival of that extensive border friction which had shown a welcome tendency to decline during the autumn of 1936. With the suspension of through traffic (at the border point of Pogranichnaya) between Harbin and Vladivostok, the entire border between Japanese-controlled areas and the Soviet Union, from the Pacific Ocean to Outer Mongolia, would seem to be closed to international traffic, except at Manchuli and Khabarovsk. Conditions along the rest of the border, if the reports from the Soviet side may be believed, continue to resemble those of suspended hostility between two belligerent countries, rather than of normal peacetime frontier relations.

Relations between the Soviet Union and China are less susceptible to ready description than are those between Moscow and Tokyo. As has been indicated in previous reports, Moscow has deprecated the kidnapping of Chiang Kai-shek, but has continued to use its influence in Nanking in favor of compromise with the Shensi military leaders. For the time being, the chief concern of Soviet diplomatists in regard to China is that a sufficiently stiff opposition should be presented to Japan in China proper to detract Japanese attention from the Manchurian border and to make it impossible for the Kwantung Army to leave its southern flank unguarded. Considerations for the well-being of China play a very minor part—if any—in the determination of Soviet policy. Moscow will continue to work for a general anti-Japanese front, including the Chinese communists, and its attitude toward Nanking will continue to be determined by the extent to which the Kuomintang is ready to cooperate in the realization of this aim.

There is no doubt that the Kremlin is doing whatever it can to utilize the communist armies in China as a weapon for the furtherance of its policy. Insofar as this is true, Moscow may be said to share responsibility for the kidnapping of Chiang Kai-shek and the subsequent events in Shensi. It may very well be that the subsequent development of events in that province turned out to be quite different than that which the Kremlin had anticipated. But there seems to be no doubt that the Chinese communists who were so closely connected with these events were following what they considered to be good Comintern policy. Their actions represented at best a misguided interpretation of ideas which they had received from Sinkiang and points west.

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