851G.00/2–1646: Telegram

The Assistant Chief of the Division of Southeast Asian Affairs (Landon) to the Secretary of State

secret
priority

2. From Landon for Moffat and Culbertson:17 Chinese informally state that French are negotiating two instrument[s] at Chungking:

1.
An agreement in regard to Chinese troops in Indochina.
2.
A treaty of commerce: That the agreement touches on:
a.
The amount to be paid the Chinese by the French to cover troop expenses in Indochina.
b.
Help to be given French troops by Chinese to reestablish themselves in Tonkin.
c.
Time and method of withdrawal of Chinese troops. It is believed that French want Chinese to withdrawal of at once and to coordinate their withdrawal with French entry while Chinese want to withdraw piecemeal over an extended period. In this connection 93rd Army began withdrawing on 15 February when 18th division started marching toward Nanking; that about every 10 days another division will begin march until all of 93rd Army exits. Ho Chi Minh wanted to advise on what Annamese should do now that Chinese are beginning exit and about 5,000 French troops from China now at Laichau near Laokay railroad to Hanoi. He stated that although French troops supposed headed for Laos nothing to prevent their entraining any day for Hanoi for coup d’état. Ho Chi Minh did not seem to fear French troops at Laichau. Other Annamese express belief Annamese capable of disarming Chinese troops in Tonkin. It seems certain that Annamese plan desperate resistance to French. Ho Chi Minh stated that he considering petitioning all United Nations to mediate Annamese independence and prevent extensive bloodshed. In this connection Chinese state that heavy loss of lives seems inevitable and that they would like to refer Indochina situation to UNO but cannot do so because of Chinese position in regard to Manchuria. The alleged Sino-French treaty of commerce said by Chinese to be stalled over question of status of Chinese in Indochina. Chinese require most favored nation treatment for Chinese nationalists on [Page 26] Chinese basis of citizenship namely jussanguinis. This treaty of commerce supposed to include concessions by French to Chinese of:
  • [1,] Free access to port of Hanoi.
  • 2, Joint control of Haiphong–Yunnan railroad.
  • 3, Joint share of profits on China end of line.
  • 4, Duty free transit of goods consigned to China.

These concessions based on Chinese claim of heavy losses due to French permission to Annamese to use Tonkin as base attack China. French Major Sainteny optimistic over quick agreement with China although Clarac’s return delayed indefinitely. Sainteny intimated that although not formally seated [stated?] the treaty of commerce will be contingent on Chinese troops’ assistance and coordination.

[
Landon
]
  1. Paul T. Culbertson, Chief, Division of Western European Affairs.