893.60 Manchuria/6–2046

The Consul General at Dairen ( Benninghoff ) to the Embassy in China 50

No. 15

Sir: I have the honor to inform the Embassy that it is common knowledge that the Soviet authorities in Dairen have packed up and [Page 1128] removed a large quantity of Japanese industrial equipment since their arrival last August. This movement appears to have largely ceased at the present time. In the absence of specific instructions, the Consulate General has refrained from making other than casual inquiries, for the reason that any persons suspected by the Russians of divulging information of that nature would be in serious jeopardy.

The volume of evidence from persons of all nationalities is such that this office has not the slightest doubt that the Russians, soon after their arrival, embarked on a systematic program of selection and shipment. One person has stated that he saw long lines of horse carts loaded with boxes carefully numbered and marked as to place of destination. Other individuals familiar with the port state that throughout the winter several ships a week left Dairen loaded with industrial equipment as well as with agricultural products. It is understood that a great deal of specific information of this nature has been clandestinely transmitted to the Chinese Government.

Under the circumstances, and for the reasons mentioned above, this Consulate General is unable to submit even estimates of the amount of material which has been exported. If the Embassy so instructs, specific and detailed information will be sought, and the greatest care will be taken to protect the individuals who furnish information. In this event, detailed instructions regarding the type of material desired are also requested. In the meantime, the Consulate General is compiling from Japanese sources lists of factories of various categories which were in existence prior to the Soviet occupation. In most cases the capitalization is known, but production figures or other statistics which might give an indication of the equipment installed have not been available.

The Consulate General would also appreciate information as to whether Ambassador Pauley proposes to visit Dairen. If he does, such material as he desires will be prepared in advance for him.

Respectfully yours,

H. Merrell Benninghoff
  1. Copy transmitted to Department without covering despatch; received about November 8.