761.93/4–847: Telegram
The Consul General at Dairen (Benninghoff) to the Secretary of State
[Received April 14—10:22 a.m.]
58. Purpose of political meeting at Port Arthur (see mytel 55, April 5) now most [not?] clear. Local Sino Central Administration moved from Dairen to Port Arthur, which is also Soviet GHQ. Officials thereof were “elected” by specially selected representatives and many Sino-Communists chosen. Inclusion of local Conservatives among delegates and in administration probably for purpose making new arrangement acceptable to Nanking and to substantiate claim that elections were “democratic”.
This administration to control all area but relationship with Dairen unclear. As Soviets apparently will not permit National control except in Dairen (see Mukden’s 38, March 28,68 and 51, April 5,69 to Nanking, also mytels 36, March 15, and 39, March 20). Result is that Sino-Communists can probably safely remain and dominate area as heretofore backed by Russia, except for Dairen city turned over to [Page 512] Chinese Govt. Even in Dairen Russian military (mytel 55) and Sino-Communist infiltration might exert decisive influence.
Soviets apparently did not appear at formal meetings although they interviewed delegates and pulled strings behind scene. Elections were rigged in usual Soviet manner.
Whether Chinese Govt will accept this or similar arrangement exchange for foothold in Dairen remains to be seen. Under provisions treaty Chinese Govt appoints all leading officials giving due regard to Soviet interests.