The Secretary of State to the Ambassador in China (Stuart)
250. USSR may be in position make out case that it enjoys status belligerent occupant Dairen sense Sec 701 Vol 2  Hyde’s Int Law and that it can claim control there accordance para 4 agreement concerning Dairen until state of war legally terminated by treaty or other appropriate means (Embs despatch 387 Jan 734). However Dept feels Soviet refusal permit restoration Chinese authority Dairen subsequent complete military defeat Japan conflicts with purpose and spirit other provisions treaty and agreements.
Dept notes Chinese Govt maintaining position that since surrender Japan provisions para 4 Dairen agreement subject implementation (Embtel 196 Feb 4) but apparently attempting achieve opening Dairen before settlement other question (Embtel 257 Feb 1234) relative to Changchun Railway. Is it not probable that action would be speeded if the two questions were tackled simultaneously? (Sent Nanking repeated Dairen Mukden Changchun) You may at your discretion mention this thought to Chinese authorities.