893.00/11–1648: Telegram
The Consul General at Mukden (Ward) to the Secretary of State
[Received November 17—5:23 a. m.]
586. Summary events and observations following Communist civil take-over Mukden. Communist troops which occupied Mukden efficient and thorough, and wasted no time reducing isolated pockets Government resistance groups and when Government forces neutralized all except minimum Communist troops were withdrawn for use elsewhere. Outstanding characteristics of troops were discipline and efficient briefing as to correct attitude toward populace and specific work details assigned. Troops far better clothed than Government troops formerly occupying Mukden. Sturdiness leather shoes worn particularly impressive in comparison light canvas shoes issued Government troops. Troops without exception appeared healthy and well fed. Average soldier remaining Mukden very friendly and troop discipline thus far withstanding temptations captured city.
[Page 572]First Communist effort in city was restoration order. Preliminary effort successfully made by military who overcame Government resistance groups with dispatch and then stopped looting. Military efforts then succeeded by civil officials who by effective police methods continued tight control of populace and city now peaceful. Far less random rifle fire now heard at night than at [any?] time during past 20 months.
Second Communist undertaking was economic rehabilitation, with primary emphasis on making food available to populace which has been hungry for months. Effective commodity price controls established, and large stocks grain made available to public at controlled prices. Radio advertisement informed populace correct prices of commodities and where such could be purchased at these prices. Free trade and discontinuance seizures farm products by Government troops have resulted arrival more foodstuffs from hinterland than at any time during past year. Effective price control plus increased supply has resulted in fact market prices some basic cereal commodities lower than controlled price ceiling.
This major Communist undertaking was inauguration educational program for people, information disseminated by voice from small groups organized Communists shouting slogans and giving short speeches from trucks moving slowly through city and a more organized information dissemination via local radio station. Propaganda distributed in writing via the newspaper and from slogans painted on every available wall or building. Reading rooms established throughout city. Fourth major undertaking was rehabilitation public utilities and major industries. City electric power and water restored without undue delay. Telephone system revitalized. Major industries such as arsenal and cereal mills resumed production. Street car service operating. Theaters reopened. Major effort now being made toward resumption normal rail traffic between Mukden and all points within Communist-held Manchuria. Communist[s] accomplishing these tasks speedily and with little or no apparent wasted effort. Former staffs Government industries being used effectively in coordination Communist technicians and workers. Loyalty former Government workers quickly won by Communist pronouncement minimum monthly wage, lowest type laborer shall be equal to 100 catties of kaoliang (equivalent US $4).
Political activity thus far rational. No information has reached us indicating arrest of former Government official, nor has there been any purge. Communist desire speedily win confidence and friendship local people exemplified fact local police have not molested persons selling military goods looted from Government warehouses during period turnover.
[Page 573]Communist[s] make no secret of cloth being in short supply. Have placed but little Communist money in circulation and are openly bartering foodstuffs for cloth and used clothing of all types.
No instances of arrests or molestation in any way, any foreign persons remaining Mukden. Attitude remains correct. Believed Communists would adopt an even more cooperative and friendly attitude were it not that they are attempting impress on foreigners that Chinese administration and policy making is prerogative of Chinese and while foreign suggestions will be received and given consideration, final decision and action rests upon Communists Government itself.
Capture Yingkow and Hulutao and Government evacuation Chengte, Jehol Province, which gives Communists undisputed control entire four northeastern provinces with vast area, highly developed industries, rich natural resources, deep water harbors, rail transportation network poses problems to Communists which they have not heretofore been called upon to face. It is by no means certain that Communists are prepared to cope successfully with these problems, which will entail foreign trade arrangements. If Communists are to progress there are certain items such as medicine, cloth, machinery and manufactured goods which must be imported. Communications with foreign countries must be opened and recognized monetary system established. Existence of blackmarket for CCP money in Mukden indicates populace regard CCP northeast yuan with skepticism. It still remains to be proved whether Communists can rehabilitate this area with the same despatch and success as that with which they wiped out final resistance in them.
Department pass Nanking 696.