893.60 Manchuria/3–2646: Telegram

The Counselor of Embassy in China ( Smyth ) to the Secretary of State

572. March 26 Dr. Wang Shih-chieh, Foreign Minister, called me to Foreign Office this afternoon and handed me an aide-mémoire dated March 26 which he requested be transmitted to Secretary of State, as follows:

“Negotiations in Changchun with the Soviet authorities on the subject of former Chinese-Japanese owned industries in Manchuria were suspended early in February when the Soviet forces failed to withdraw after the agreed date. The Chinese Govt indicated later on that these negotiations, if and when resumed, should be conducted in Chungking instead of Changchun.

The Soviet Govt has now informed the Chinese Govt that the Soviet forces will be completely withdrawn by the end of April and that the Soviet Govt is prepared to negotiate with the Chinese authorities in Chungking on matters of economic collaboration. It is the intention of the Chinese Govt that when these negotiations are resumed, no agreement will be concluded until the Soviet forces have completely evacuated from Manchuria, and that no agreement reached with the Soviet Govt will preclude the freedom of concluding similar arrangements for economic cooperation with other countries.”

Dr. Wang said that it was not certain when negotiations with Soviets would commence. He said that he would continue to keep us informed of developments.