The Ambassador in China ( Stuart ) to the Secretary of State
[Received August 30—11:54 a. m.]
1594. ReDeptel 1239, August 27, 7 p. m. It now develops that the assurances given by Foreign Office as contained in Embtel 1489, August 12, noon, may not be all they seemed. Embassy learns that [Page 741] several days ago Soviet Ambassador30 entertained Foreign Minister, Minister Communications31 and Secretary General of Executive Yuan32 at a small informal dinner at which main topic of conversation was Sino-Soviet airline. As a result of this conversation denunciation of treaty is still under consideration. Foreign Office official recently informed a reliable American newspaper man that matter had not been decided upon.
Consul Tihwa repots that Foreign Office representative in Tihwa is proceeding to Alma Ata for first Sino-Soviet board of directors meeting in 4 years. Foreign Office delegate said China might attempt to denounce agreement but said this not certain.
In view of Chinese record to date on questions in which Soviet express an interest, Embassy inclines to view that Chinese in this case would also yield to pressure. Unless we are prepared to offer a substitute for Sino-Soviet airline it is difficult to see how we can do more than express the hope that agreement will be denounced. We do believe, however, that if the Chinese do not denounce the agreement we should make it plain that we cannot accept Soviet interpretion that monopoly features of agreement embrace anything more than commercial service between Hami and Alma Ata and we should at the same time insist on our rights send in Attaché planes.