761.9327/12–948: Telegram
The Consul at Tihwa (Paxton) to the Ambassador in China (Stuart)45
[Received December 4—12:38 p. m.]
228. Gist of info re Sino-Soviet airline negotiations obtained separately from FonOff’s delegate Liu and his section chief in charge Soviet Affairs follows:
In Spring 1947 Moscow finally agreed to board meeting (supposed to be held annually but suspended since 1943, at first on account of war and later due to lack of Soviet consent) however Nanking did not approve until Summer 1948.
Chinese interest in session was merely to obtain long sought enlargement ratio of Chinese personnel which Russians claimed could only be decided by board. Increase from 3 to 19 Chinese out of total staff of 41 was accepted at this meeting though Soviet delegates queried need for change view Chinese denunciation, issued after arrangements were completed.
[Page 754]No reference made by either contact to Chinese foreign exchange, point raised by Liu in Nanking (Embtel 117, Nov 25) but both said initiative for recent meeting was chiefly from Russians, presumably to apportion losses hitherto borne by them alone. Agreement was reached on amount due.
However, Soviet delegates tried to discuss renewal and Liu had to stress that he was not empowered to treat on terms as they required, handling at Govt level (first part mytel 112, November 2 [12] through Dept) but in the end were most conciliatory.
Junior informant thought that negotiations for new pact would probably be held prior to expiration present one “to prevent wasteful break in operations”. No apparent doubt in mind of either that it would be renewed, but only on terms more favorable to China.
- Copy transmitted to the Department by the Ambassador in his covering despatch No. 495, December 9; received December 29.↩