The Ambassador in China (Stuart) to the Secretary of State
[Received June 20—5:05 a.m.]
1347. Following is Tihwa’s 268, June 17:
“General Chang makes following comments on Peitashan incident: It was partly due to confusion whether place in question lies in [Page 564] Chinese or Outer Mongolian territory lacking official demarcation of border.
This is complicated by mutual irritation engineered by accumulation of disputes between Russia and China particularly in Sinkiang.
He ascribes Chinese publicity to apparent willingness of Central Government to magnify incident for Chinese consumption in order to direct mind of public away from student strikes and other domestic difficulties and toward a border situation alleged to constitute a real threat. This is being done in hope of rallying all factions which may be loyal to Nanking but by so doing they may actually evoke the bogey whose existence they merely wish to pretend.
Nevertheless, general understanding that Outer Mongolia is Soviet satellite seems supported by evidence presented by General Sung (reference my telegram 267, June 15 sent Department as 1320, June 17). Activities previously reported in Ashan zone (my telegrams 223, May 25 to Department A–116, May 30 and 257, June 8 to Department 1256, June 11) also indicate that Soviet Union seeking to keep situation disturbed for its own purposes. Paxton.”