893.00/14983: Telegram

The Chargé in China (Vincent) to the Secretary of State

354 [534]. Department’s 400, March 25, 4 p.m. Minister of Economic Affairs50 has informed CP [me?] that the major Soviet interest in Sinkiang is the oil refinery west of Tihwa. It is not properly described as a “concession”. It is a company with Sinkiang Chinese at the head and with Russian technical advisers. However, Russians own the refining machinery and to all intents and purposes control the company. Chinese Government is negotiating with the Soviet authorities for agreement to operate refinery cooperatively. Soviets also have interests in an agricultural development organization which Dr. Wong tells me strangely enough maintains an airplane. The Soviets operate an airline from Alma Ata to Hami in which it is understood [Page 223] the Sinkiang authorities have nominal half interest. Soviet trucks cross Sinkiang transporting materials to China and returning with strategic materials to Alma Ata. Dr. Wong has unconfirmed report that Russians have recently become interested in the exploitation of wolfram deposits in that portion of Hi lying in Sinkiang. Dr. Wong appeared hopeful that the Chinese Government would be able to work out with Soviet authorities arrangements for economic development in Sinkiang on an amicably cooperative basis which gave due respect to Chinese sovereignty.

Clubb in Tihwa has been requested to prepare an airmail report in response to Department’s reference telegram. With regard to Sinkiang oil refinery, Department may wish to refer to Embassy’s despatch number 668, October 8, 1942.51

Vincent
  1. Wong Wen-hao
  2. Not printed.