893.00/12–246: Telegram

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

2378. Bayne reported on Sinkiang developments after return from Nanking last week. Apparently discussions between (reference my telegram 2338, November 27) Soviet Consul General and Chinese Governor are suspended pending reply from Moscow on Chinese request for answer to latter’s proposal last year for trade monopoly. Pending any new Soviet suggestion or reply, Governor Chang requested delay return to Nanking.

[Page 1220]

New subject. Foreign Office recently received suggestion from Soviet Embassy that Russian troops be stationed near Antung on Korean border north of Yalu River to protect hydro-electric power plant. Chinese reply was to effect that Nationalist troops were already giving this protection and that Soviet action proposed was therefore unnecessary.

Sent Department, repeated Nanking as 1351.