893.00/5–545: Telegram

The Ambassador in China (Hurley) to the Secretary of State

725. Following is summary of recent telegrams from Consul Ward in Tihwa.

Arrival in Sinkiang of substantial reinforcements (Embassy’s 643, April 18, 3 p.m.) makes unlikely severance of communications with Lanchow or a successful attack on Tihwa, but the cost of maintenance of such a large military establishment has tended to aggravate inflation and other sources of discontent. Tension continues, however, and the authorities have ordered a new series of arrests allegedly in an effort to forestall plans of insurgents to extend their sphere of influence to Kashgar.
Petrov, the new Soviet Ambassador to China, arrived in Tihwa April 16 and left for Chungking on April 25. During his visit in Tihwa there were held a series of friendly conferences between Soviet representatives and Chiang Ching-kuo; and Ward states that for first time since his arrival in Tihwa there was evidenced a sincere effort on the part of the Chinese to seek Soviet good will. Chiang also left for Chungking on April 25, although on a different plane from that on which Petrov traveled. He was accompanied by Wu Chung-hsin who, having tendered his resignation, may not return to Sinkiang.