The Consul at Tihwa ( Paxton ) to the Secretary of State
[Received August 31—6:26 a. m.]
82. Today Liu called prior to departure for 2 weeks’ conference and yielded following information reference Deptel 32, August 27:27
(1) Only after our talk reported mytel to Embassy 159, August2628 had he received news from Foreign Office (perhaps from Pu Tao-ming en route Paris) that termination notice had already been given to Soviet authorities and (2) he still, however, has authority to negotiate new agreement if Chinese demands for more favorable treatment are met. He said that his own staff had not been told of this and asked that it be kept confidential, particularly from Chinese officials.
This message sent through Department since Tihwa has very small reserve of OT Pads with Embassy (see mytel 71, July 18,29 as yet unanswered), and it seems better to save remainder for emergency.
Sent Department 82, repeated Nanking 162.