893.6463/8–1448: Telegram

The Consul General at Tientsin (Smyth) to the Secretary of State

235. ReDeptel 1159, August 11 to Nanking, repeated Tientsin as 165, Shanghai 1465 and Peiping as 144. According to reliable sources here, including KMA,39 no industrial facilities have been removed from North China as result of reported issuance by Nanking several months ago of instructions calling for removal of certain facilities to South. Nanking instructions aroused bitter resentment in North and there seems no likelihood that any machinery or industrial facilities can be taken away from North China in face of this strong feeling. Effort made by NRC in May to remove Tangshan steel plant; some machinery packed for shipment but whole matter dropped early June because of vigorous opposition. To make sure that no industrial machinery and equipment would be removed to south, Tientsin Garrison Commander on July 19 issued order prohibiting removal to south of any such items (see our A–48, August 340 political review for July).

Only removal from North China, of which we are aware, consisted of 2 locomotives, 43 freight cars manufactured Mukden transferred from northeast few months ago, which Peiping–Mukden Railway unable to buy and subsequently sold to Chekiang–Kiangsi Railway.

Sent Nanking 411; repeated Department 235, Shanghai 383, Peiping.

  1. Kailan Mining Administration.
  2. Airgram No. A–48 to the Ambassador in China, not printed.