The Ambassador in China (Stuart) to the Secretary of State
[Received November 18:40 a.m.]
1787. Chinese Govt is obviously using delaying tactics in matter of Sinkiang negotiations and so far as Embassy can ascertain it has not yet appointed officials to proceed to Tihwa. In the meantime it has notified Soviet Consul General at Tihwa that Chinese Govt agrees in principle to the joint exploitation of tin and wolfram mines on the understanding that the management is to remain in Chinese hands. (See Embtels 1649, October 12, 4 p.m., and 1704, October 2, 9 a.m.)
As regard trade he has also been informed that Chinese Govt is awaiting reply to communication made to Soviet Ambassador about a year ago in the matter of channelizing Soviet trade in Sinkiang through a single agency set up for the purpose.