761.93/8–1145: Telegram
The Ambassador in the Soviet Union (Harriman) to President Truman and the Secretary of State
111258. Soong told me this morning of his negotiations with Stalin last night. Stalin insists that Dairen be within the Soviet military zone but agrees that military authority should not be exercised in time of peace over the city of Dairen including the port and connecting railways. In time of war the Soviets would assume control. This seemed acceptable to Soong. Stalin now agrees that the administration of the city of Dairen including the port should be [Page 968] Chinese. The Chief of the Port, however, should be Soviet reporting to the Chinese Mayor. This also Soong is prepared to accept. Stalin, however, proposed that the port facilities should be jointly owned. Soong will not agree to this but will propose that certain wharves and storage facilities should be leased to the Soviets at nominal terms. He hopes that Stalin will accept this compromise.
As to Outer Mongolia, Soong proposed that the Chinese should recognize its independence after a mixed Commission had agreed upon the boundaries. Stalin rejected this and insisted that China accept “the existing frontiers”. As these are vague and [un]defined, Soong does not feel this is possible. He will propose however that China will recognize the independence of Outer Mongolia after the plebiscite and that then a Chinese-Mongolian Commission should define the “existing boundaries”. This counter proposal he believes Stalin will accept. It is interesting to note that in connection with the discussion on Outer Mongolia Stalin threatened Soong that if China did not agree the “Inner Mongolian brothers would join Outer Mongolia in forming a greater Mongolian Republic”. Stalin evidently feels that he is in a position to speak for the Mongolian peoples.
As to the railroads, Stalin agreed to Soong’s proposal that there should be a board of directors of 10 with equal membership with one of the Chinese as chairman. He insisted, however, that there should be one Soviet manager for both railroads with a Chinese assistant manager, No agreement was reached but in the last analysis I believe Soong will give in on this point if all other questions are settled.
As to Port Arthur, Stalin last night refused to agree to a Chinese-Soviet Commission. Soong, however, believes that he can come to some satisfactory solution which would save China’s face since he recognizes that Port Arthur and the military zone must be under Soviet control.
There was a long argument in regard to the wording of the proposed Soviet agreement to support the Chinese National Government and to withhold moral, material and military aid from dissident elements within China. Compromise language, however, was agreed upon which is not quite as clear as Soong would wish but as it is after all a question of good faith he feels that he should accept this language.
The conversation concluded with a threat by Stalin advising Soong that he had better come to an agreement quickly or “the Communists will get into Manchuria”.
Soong is having further negotiations with the Soviets today.
Stalin’s demand for joint ownership of the port facilities of Dairen and for one Soviet manager for both railroads appear to be the principal stumbling blocks. The former Soong will not give in to whereas I believe he will concede the latter.
[Page 969]Soong expressed the opinion that our intervention in connection with Dairen had materially assisted him in obtaining concessions from Stalin’s original demands.
It is my opinion that our interests would be adversely affected if Soong agreed to give the Russians joint ownership of the port facilities of Dairen and the Yalta Agreement certainly does not envisage this but I do not feel that the issue over the managership of one of the two railroads is of sufficient importance to allow the negotiations to break down.
It would be helpful if I could be informed urgently of your views on these developments.