893.01/9–348: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received September 4—3:59 a. m.]
1623. North Shensi radio September 1 announced formation of North China People’s Government as a result of a 13-day session of North China Provisional People’s Representative Congress. Announcement stated appropriate steps had been taken by Congress to implement this Government. Full text of announcement being sent by airgram.95 Announcement omits too many details to permit accurate appraisal of significance of this development. No mention is made of area to be included. It is possible that this is merely a formalization [Page 450] of a previously announced unification of two principal border areas which grew up during war against Japan. It seems more likely, however, that new government will control all China south of Great Wall now under Communist domination and that this move represents an attempt to coordinate Communist activities in China proper and to eliminate larger degree of autonomy which has heretofore existed in advance areas in North China. It would also seem to be related to Communist agitation for convocation of a new PPC [PCC] in Communist territory and apparently successful attempts of Communist[s] to secure participation of various prominent exiled dissident leaders in Hong Kong therein (see Embtel 1620, September 396). Announcement makes no mention of capital nor where this recent meeting was held.
Most interesting point in this attempt to establish a proper government will be to see whether it attempts to establish relations with other governments and whether it will be granted recognition by Soviet Union. Should this prove to be case, it will of course represent a major development in Sino-Soviet relations. It is difficult to see how Soviets can grant such recognition unless they are prepared to forego any chances of a closer accommodation with National Government. It is of course possible that Soviets may use threat of recognition as an instrument in persuading National Government to accept a negotiated peace which appears at moment to be first objective of Soviet policy in China.