761.93/10–1446: Telegram

The Consul General at Shanghai (Davis) to the Secretary of State

1993. For Butterworth and Ambassador from Bayne.

  • “1. Re Manchuria. Chien,22 NSC [NRC?] Chief just returned from Manchuria, states no Soviet proposals made recently. However, Chinese expect proposals eventually.
  • 2. Re Sinkiang. Wong Wen-nao, interviewed yesterday advised that Soviets are interested in exclusive rights and a degree of monetary control not yet made clear. There appears to be no direct connection between these negotiations and recently rumored Soviet pressure in Manchuria. Latter culminated in protest note to China [Page 1212] station [stating] that Soviets as part owners of railway did not approve Nationalist troops using railway in war offensives. Chinese rejected note flatly. Russian troops or technicians then waiting in Manchuria to begin joint operations of railway were withdrawn. No further word on this subject has been heard, and Chinese are fearful of next Soviet step.23
  • 3. Generalissimo has authorized two officials not yet named by Soong to join with Sinkiang Governor in economic negotiations with Soviet Consul General locally. These three will conduct talks to point of preliminary agreement when entire matter will be referred to Nanking for possible signature by top level.
  • 4. Wong suggested that United States might wish to avoid taking open stand or position until matter is returned to Nanking from preliminary negotiations in Sinkiang. He states that while his position and mine as informant should he protected in this matter, Embassy might inquire at Foreign Office using rumor as basis and be informed of Sinkiang situation officially.”

Sent Nanking as Shanghai serial 1136, October 14, noon; repeated Department 1993. [Bayne.]

  1. Chien Chang-chao, Chairman of the National Resources Commission of the Chinese Executive Yuan.
  2. See also pp. 362 ff., passim.