123 Patch, Isaac: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received August 9—9:14 a. m.]
1469. Isaac Patch, Jr., who for the past 2 years has been American Vice Consul at Dairen and for a part of that time in charge of the [Page 403] office, passed through Shanghai today en route to the US on home leave. Mr. Patch had the following observation to make on his tour in Dairen.
In his judgment economic conditions have improved little in the past 3 years. Shortage[s] of raw materials and capital equipment continue to cause high prices and widespread unemployment.
Relations between the Soviets and Chinese are officially friendly but actually far from cordial. The Kwantung Government officials cooperate faithfully with the Soviet military and civil administration. Indeed their loyalties seem to attach more to the Soviets than the Chinese Communist Party. On lower level, however, the Chinese residents do not respond warmly to Soviet efforts because the Soviets have shown a rather contemptuous attitude towards the Chinese, looking upon them as inferiors.
From Mr. Patch’s account it is noteworthy that despite 3 years of Communist administration in Dairen, politically and economically the system has made practically no progress towards even an initial stage of socialism. There has been no new labor legislation worthy of note. Child labor is common. No new hospitals have been constructed. The educational system can boast of no advances except along the line of Marxism indoctrination. There is now an extensive net of labor unions throughout the Dairen area and practically all workers are members. Their membership, however, is not exclusively voluntary since the distribution of food grains is effected by the labor unions and non-members have great difficulty in otherwise obtaining supplies.
The tempo of Marxism indoctrination in Dairen has increased constantly during the past 3 years. Initially such teaching was negligible, but now it is being pursued by all mediums: Schools, newspapers, lectures, radio and demonstrations.
Parallel to this stepped-up tempo have been the increasingly strict controls placed on the movements and freedom of both Chinese and foreigners. Each Chinese family must possess a registration book issued by the police in which is recorded any movement of a member of the family from one town to another. If a member of the family wishes to spend a night away from home, it is necessary for him to register. During the past 6 months more stringent controls have been placed on Chinese wishing to leave the Dairen area. In the summer and fall of 1947 many Chinese departed while permission was still easily obtainable. However, since then progressively stricter controls have been introduced and now permission for immigration can only be procured from the Kwantung police with great difficulty. Now the only Chinese permitted to leave Dairen are those who obtain [Page 404] temporary permission to travel by junks to neighboring areas for the express purpose of obtaining food.
Similar restrictions have been progressively applied to foreign residents. By now the foreign colony has practically been reduced to Soviet citizens and members of the American Consulate. Despite his consular functions Mr. Patch was permitted to visit the port area only at the time of arrival of American diplomatic couriers. He was denied access to the bathing beaches. Strategically placed road blocks greatly limited the possibilities of traveling in the outskirts of the city and beyond.
Mr. Patch added that the social pressures operating under the present administration are such as effectively to prohibit the establishment of friendships or associations with Chinese citizens and the few remaining foreigners. Indeed the isolation in which the members of the American Consulate live is now almost complete.
Sent Department 1469, repeated Shanghai 712.