893.00/5–1948: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received May 20—5:30 a. m.]
899. During month of April, North Shensi news broadcasts concentrated on encouraging expansion private industry and commerce by emphasizing its new policy of protection of commercial enterprises and capital, offering one year’s tax exemption and loans for rehabilitation and expansion. Broadcasts cited many specific instances in which privately owned industries and other commercial enterprises in Communist controlled areas were restored to full capacity by loans from democratic government and in each case specifically indicating great increases in production due to close cooperation between capital and labor. Comparisons were made to low cost of food and commodities in Communist-held cities as compared to increased prices in Kmt cities, specifically Tientsin. Great progress being made in industry in Harbin was stressed, which was allegedly due to increased purchasing power of peasantry since agrarian reform. In an attempt to make reparations for past offenses, one item stressed that stipulated provisions for protection of industry and commerce would be rigidly adhered to and that “all merchants and industrialists whose interests have been infringed on through errors in carrying out agrarian reform are to be fully compensated and reimbursed”.
Broadcasts began emphasizing another new policy of winning over and educating intelligentsia, making concerted appeals to “all educated youths regardless of class” to join party. Articles stressed that every opportunity for education would be afforded children of workers, peasants and other toiling masses “in order to train new type of intelligentsia by offering free education”. Many items cited unprecedented increase in school attendance in various parts of Manchuria and hailed establishment of night schools in many areas. Throughout month broadcasts consistently attempted to lure students with enticing offers of protection and opportunities to pursue their studies under Communist guidance. At same time there were numerous references to “persecution” of students in Kmt areas and suppression of patriotic and democratic movement including dissolution of North China Students Federation and other items depicting student struggles which ensued. One item claimed that less than two percent of Kmt Government budget was earmarked for educational expenditures, instead of 15 percent promised and cited protests made by 6 universities.
In a concerted attempt to capitalize on Chinese hatred of Japanese, several war communiqués referred to Japanese being discovered [Page 245] amongst Kmt prisoners. One item also alleged that Japanese Foreign Ministry had set up anti-Soviet, anti-Chinese spy ring under title of Research Bureau, declaring that “it is to send spies to penetrate into China, restore all former Japanese intelligence connections, and work on key Kmt officials to obtain their support of planned American general amnesty for all Japanese war criminals”.
War communiqués were, as usual, full of glowing accounts of overwhelming victories on all fighting fronts and were usually followed by lengthy accounts of deplorable conditions and suffering of people which Communist troops encountered upon capture of each area and relief which Communists poured into these areas upon “liberation”. Several articles were injected with references to increasing number desertions in Nationalist ranks, discipline Communist and protection afforded to churches in battle areas. Recapture of Yenan52 hailed as major victory and evidence of growing weakness and rapid collapse Kmt regime.
Several articles alluded to use of poison gas by Kmt troops alleging that captured Kmt documents substantiated this fact, and ominously warning of eventual retribution. Another item refuted General [Central?] News Agency charge that “poison gas smoke screen” had been used by Communists and attributed to rumor to cover up for Kmt actions.
Final passage of US China aid bill53 evoked lengthy attacks against “American imperialism” and charges that US was investing in Chiang Kai-shek’s civil war in order to transform China into American colony. It was further charged that US has been pouring military aid into China long before passage of aid bill and that official passage constitutes formal declaration of war on Chinese people by American imperialism. Marshall’s54 attempts at mediation and policy of non-intervention in Chinese domestic affairs was called treacherous plot to camouflage reactionary policy of enslaving China. Canada and Belgium were accused of following lead of American imperialism by sending munitions and planes to China and an appeal was made to working class and people of these 3 countries to “unfold mass movement against aid to Chiang Kai-shek’s Government”.
Sent Department, Department pass Moscow 34.