The Ambassador in China (Stuart) to the Secretary of State
[Received May 17—5:39 a. m.]
1044. Re Dairen’s 41, May 5  to Embassy Canton, repeated Department 134, Shanghai 127. Suggest you may wish to mention to Nationalist Government that it is missing opportunity to capitalize on emergence of CCP in Port Arthur–Dairen area despite hypocritical Soviet recognition Nationalist sovereignty there. That organized CCP has long functioned there was succinctly announced April 19 by Peiping radio which, in referring to “conference of active elements of CCP from April 1–3 in Dairen”, stated “work of CP in area during past 3 years was discussed and CP of area was made public”; also on May 12 Peiping radio announced “workers in Port Arthur and Dairen [Page 879] have made great headway in rehabilitation and reconstruction during past 3 years under leadership of CCP organization there”.
Sent Embassy Canton 430; repeated Department 1044, Shanghai 591.