693.0023/1–1147: Telegram

The Ambassador in China (Stuart) to the Secretary of State

60. The Far Eastern Manager of Tass, V. N. Rogov, whom many informed people consider to rank highly in Soviet intelligence, in conversation with an officer of the Embassy apropos of the American démarche on Dairen, stated that Soviet Govt has so far taken no action to straighten out the situation regarding that port because of continuing uncertain conditions in Manchuria; that the Soviet Govt is fully aware of the reasons why Chinese Govt has as yet been unable to live up to its commitments under the Sino-Soviet treaty of 1945 and realizes that nothing is to be gained at present by pushing the issue (reDeptel 1252, December 319). He went on to say that the Soviet Govt appreciates that if it withdraws from Dairen and the port is opened to traffic, such eastern Manchurian commerce as there is would flow in that direction; a beginning having been made it would tend to become fixed through that outlet. The Soviet Union, on the other hand, is desirous of turning a certain amount of the trade to the east over the eastern branch of the Chinese Eastern Railway with Vladivostok as the point of exit. It has not yet been possible to secure Chinese agreements to this end. Soviet Govt would, therefore, not find it in its interest to open Dairen until suitable arrangements have been concluded.

The above action would be in consonance with what appears to be Soviet policy of tying in Manchurian economy so far as possible with [Page 484] Siberia east of the Baikal and the Maritime Provinces, since the northeast has many products, especially raw materials, which could be useful in the development of Soviet Far Eastern industry.

Sent Dept as 60; Dept please repeat to Moscow.