893.00B/4–1049: Telegram

The Ambassador in China (Stuart) to the Secretary of State

739. Re Dairen telegram 92, April 2, to Department, repeated Shanghai 86, Hankow 45, Seoul 15, Peiping 2. Following, as it does, only some 2 weeks upon second Plenary Session Central Committee elected by 7th CCP Congress, emergence CCP in Dairen gives support our belief that that Session probably reached as yet unannounced important decisions. Parenthetically, another decision which has come to light past few days as at least having been reaffirmed is that of rejecting any compromise with Nationalists.

It seems to us that whole pattern of behavior indicates Soviets may have obtained some very important quid pro quo to induce them thus modify their position Dairen and make this exception their policy “correctness” toward National Government. It is worth noting that, despite obvious temptations, CCP propaganda has so far failed capitalize upon CCP achievement Dairen.

Sent Department 739, repeated Shanghai 353, OffEmb Canton 236, Dairen 23, passed Moscow 24, Seoul 6.