893.00/9–847: Telegram

The Consul General at Mukden (Ward) to the Secretary of State

247. Bulk refugees from Communist areas are poor and middle class people of non-working age. Do not fit into Communist program, find slightly better conditions in Nationalist territory, although large numbers educated classes who previously left Communist territory are returning thereto because consider conditions and program in Communist territory better. Source: Educated Chinese in Kaiyuan who has talked to a large number of Harbin and Hsian refugees.

All railroads in Communist territory north of Sungari repaired and in good condition. Rolling stock ample. Railroads being very efficiently run. Little corruption among officials. Communists building railroad from Chengchiatun to Harbin. Source: Former member south Manchurian railway administration who was caught in Harbin, returned to Kaiyuan, disappeared and returned to Harbin. People have great respect for upper level Communists. This includes city magistrates and above. Lesser officials corrupt and intensely disliked by people. Land reform program in Manchurian Communist-held territory completed before Communist fifth offensive. People very satisfied and consequently willingly and enthusiastically joined offensive. Communists believe successful completion of land reform greatly responsible for high morale and success in fifth offensive. Soviets actively propagandizing Communists. Being very clever in their infiltrating tactics so that Communists will not think they are taking over. Making Soviet movies available to all Communist areas. [Page 280] Soviet published periodicals and papers readily available Communist area north Sungari. Source: Chinese student who visited Harbin and Tsitihar and Harbin and who has returned to Peiping to continue studies.

Sent Nanking as 378; repeated Department as 247 and Changchun as 244.

Ward