893.00/5–449: Telegram

The Consul at Dairen ( Paddock ) to the Secretary of State

134. Political changes here seem now completed. Others not expected until conditions in rest of China stabilize. Purpose this telegram to outline major steps involved in these changes and summarize information sent by Consulate in miscellaneous telegrams.

March 19 Preparatory Committee of New Democratic Youth Corps formed in accordance resolve of CCP Central Committee. This first public admission by a Chinese body in Kwantung of Communist connect[ion]s and hinted CCP would soon emerge here.
March 31 Kwantung Jih Pao (organ of Kwantung Administration) announced it would cease publication; Dairen Jih Pao (Labor Union organ) stated it would become an apparatus paged under name Jen Min Daily.
April 1 CCP emerged from underground in Kwantung and announced it subordinate to NE bureau of CCP. Front agencies changed names or admitted Communist connections.
April 12 puppet Dairen Mayor Hsu granted long leave absence. This first sign of formal changes in Kwantung Administration.
April 22 puppet Chairman of Kwantung Administration Chih announced resignation. People’s Republic Conference summoned by Vice Chairman and leaders of “democratic groups” (all Communists) to elect new chairman and officers.
April 25 elections to conference held, only “democratic organs” voted which controlled by CCP.

April 28, April 27 conference held; positions of former puppets filled by CCP members. Name Kwantung administration changed to P[ort]A[rthur]–Dairen Executive Administration. Regional CCP Secretary Ou-yang stated PA-Dairen is part CCP liberated area; he indicated Soviets remain PA naval base area but avoided reference to Soviet-occupied Dairen.

Summary: CCP now openly controls local government. Soviet civil administration, Soviet garrison and other Soviet organs remain in Dairen. Thus CCP-Soviet local relations appear unchanged. However, without former restraints necessitated by Soviet policy of “correctness” toward National Government, CCP expected carry out now same economic, political, social program as in Manchuria.

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Sent Canton 41, repeated Department 134, Nanking 95, Shanghai 127, Peiping 12, Moscow 80, Seoul 26.