893.00/4–547: Telegram

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

745. Following is Mukden’s 48, April 3, 10 a.m.

“General Tu Yu-ming in course conversation during my call on him yesterday denied that diplomatic arrangements Dairen take-over have been completed. He admitted that Chinese FonOff (sent Embassy 48, repeated Shanghai 67 for Dairen) had asked NE authorities to undertake take-over Dairen area without bringing armed forces into area in view of Soviet objection to entry such forces. Tu said that he thereupon informed Nanking that entry could not possibly be attempted on such basis as Chinese cannot sacrifice right to have Chinese forces in “its own territory” and as troops will be necessary to overcome resistance of Communist forces, Dairen area totaling 50,000, according to Tu. NECC has therefore made no preparations for take-over, Tu says.

While reporting above statements as deserving considerable weight, suggest that they should not be taken as definitely precluding possibility (favored by some observers) that Tu has well-advanced plans for take-over Dairen but seeks to conceal any such intention in hope deceiving Communists.”

Stuart