811.20293/6–1949: Telegram
The Consul General at Peiping (Clubb) to the Secretary of State
[Received June 19—5:46 a. m.]
1039. Following is full text NCNA73 English language service item appearing today under Mukden June 18 datelines:74
“Base of big American spy ring brought to light Manchuria has just been disclosed here by Public Security Department of Northeast Administrative Council. Principal espionage agents involved in case are Sasaki, Japanese, Royen-Tsang, Mongolian, and Wu Jen-chieh, Chinese national of Sino-American parents; they have been arrested and will be punished according to law of People’s Government.
“They were discovered with 6 American-made transmitting and receiving radio sets of 15 watts, 3 generators, 16 secret code books of American espionage service, 10 gold ingots for espionage expenses, 3 working plans, 4 directives, 13 documents on organization of American T.S. espionage organization and biographical material of its personnel, 28 copies of intelligence and 40 military maps and charts.
“Evidence at hand shows that so-called American Consulate in Mukden and US Army liaison group Mukden are American espionage organs. American espionage service Mukden made use of former Japanese secret service agents and Chinese and Mongolian traitors to conspire against Chinese people and world peace. According to confession of Sasaki, one of principal espionage agents, he engaged in espionage work before complete liberation of Manchuria under direct instructions from so-called US Army liaison group and former American Consulate in Mukden. His job was to collect military, political and economic intelligence in Northeast liberated area and Inner Mongolia.
“Prior to liberation Mukden in October 1948, Sasaki and Tsao Cheng-teh received orders from so-called US Army liaison group and former American Consulate to go ‘underground,’ set up secret radio station and continue their activities. So-called US Army Liaison Group (ALG) was open title of American Espionage Department in China called External Survey Detachment 44 of US War Department in Shanghai (ESD 44) with headquarters Shanghai. After Japanese surrender ALG moved to Manchuria with Knit invasion army and set up branch groups Mukden and Changchun. It enlisted former Japanese secret service agents, Mongolian and Chinese traitors to conduct espionage work against Chinese people. One of Japanese special service agents employed by ALG Mukden was Sasaki, called SSK alias Chang Chih-chung in China and Sakuma in Japan.
“He was graduated from Russian Mongolian [garbled group] of Military Academy of Japanese Kwantung army in Hsingan. During Manchoukuo regime, he undermined Northeast People’s anti-Japanese war of resistance in Hsinganling area in Heilungkiang province.
“After August 15, 1945, he fled to Mukden and became intelligence agent of Second Office of Kmt Ministry National Defence. Later he [Page 966] was recommended to work in former American Consulate, Mukden, and ALG as an espionage agent. He maintained direct connections with Nishida, American-Japanese who was an assistant to Senglauf, head of ALG in Mukden, an American German. His job was to absorb remnants of Japanese and Manchoukuo secret service into work of collecting intelligence on Northeast liberated area and Mongolia. He had altogether supplied important intelligence 70 to 80 times to Nishida and directed American espionage group called T. S. according to copy of report to Nishida on locations of the T. S. organization by Sasaki in April 1948, headquarters of espionage department moved to Peiping in February 1948, with branch headquarters in Mukden and Peiping. Mukden branch headquarters had under it 11 intelligence stations set up in Changchun, Harbin, Tsitsihar, Mutankiang, Tumen, Hailar, Manchuli and Hunchun. ALG Changchun enlisted service of Mongolian traitor Po Yen-tsang called TOAS 4 and ordered him to set up intelligence stations Inner Mongolia to collect intelligence and engage in sabotage work.
“In February, 1947, he went to Chengchiatun in Liaoyuan country and asked the Mongolians there to spread rumor that Inner Mongolian problem can only be solved with help of Chiang Kai-shek and America to undermine national unity of China.
“Then he set up intelligence station in Pechengtze (Piuchengtzu) and supplied American espionage department with intelligence of organization and names of leading persons of Inner Mongolian autonomous government. He also supplied American espionage department with brief biographies and accounts of habits of these persons as well as photographs showing political life of Mongolian people.
Another espionage agent, Wu Jen-chieh, was recommended by Barandson, American intelligence agent in Mukden, to establish connections with Walsh in so-called Navy Liaison Branch Group. His job was to pass on intelligence between Mukden and Tientsin. Wu Jen-chieh camouflaged himself by acting at first as English Secretary of Kmt Northeast Administrative [Affairs] Committee and later as merchant. He met Walsh in family of Tovodani Jiroo, Japanese professor of Mukden National Medical College, and after receiving letters containing intelligence he flew to Tientsin and handed them over to Mrs. Kossov, White Russian residing in former Tientsin British concession. When Wu later lost contact with Walsh, he was recommended by Senglauf to work under direction of Hunt, another American intelligence agent.
“On eve of liberation of all Manchuria at end last October, open section of ALG in Mukden prepared to withdraw to Shanghai and Sasaki [and] Tsao Cheng-teh were ordered to draw up plan for working underground. Main point in Sasaki’s plan was to make use of influence of the ‘third forces’. So-called third forces were the underground remnants of Japanese and puppet Manchoukuo secret services including Arisaka, Takeuchi, Hsiao Yao-ting, Wang Fang-hsin, Kuo Cheng-lu, Yana-Giki, Yamamura and Tsao Cheng-teh, Takeuchi and Hsiao Yao-ting took charge of communications between Peiping and Mukden with the Alice Café in Mukden as their meeting place.
Sasaki received from ALG two miniature radio sets, one miniature generator and one secret code book, nine gold ingots, wheat flour, sugar and rice as espionage expenses. [Garbled group] ordered Sasaki [Page 967] and his gang to collect intelligence about garrison forces, traveling regulations, identification cards, etc., in Manchuria and Inner Mongolia. According to ‘plan of work of various stations in East Mongolia proper’ drawn up by Tsao Cheng-teh, it was planned to set up an intelligence headquarters in Mukden and liaison stations in Wangyemiao, Changchun, Szepingkai, Chinchow, Chengchiatun and Tungliao. Sixteen intelligence agents were to be employed who would camouflage themselves as merchants.
Plan also provided 12,000 Kmt gold yuan for monthly expenses and 2,100 Kmt GY per month for travelling expenses. At same time, ALG headquarters Shanghai sent Myadan to organize underground work of Mongolian traitor Po Yen-tsang and gave him 2 portable miniature American-made radio sets, code books, intelligence expense [garbled group] American dollars and 16 bags of flour.
Hunt in like manner gave Wu Jen-chieh two miniature portable American-made radio sets, one miniature generator, one secret code book, gold ingots and gold bars as espionage expenses. Hunt also told Wu to establish radio connections with Tientsin. After liberation of Mukden, these espionage, agents continued their organization of underground espionage activities.
In December 1946, Wu Jen-chieh went with American intelligence agent Barandson in name UNRRA76 to Tungliao. They collected military intelligence about People’s Liberation Army in name of investigation relief conditions and supplied this intelligence to former American Consul in Mukden.
Another American espionage agent known as liaison officer also ordered Wu Jen-chieh to collect intelligence on Northeast liberated area for former American Consul in Mukden. When Japanese were repatriated in 1947, former American Consul retained Sasaki for espionage work and a retention permit No. Cheng Chiao 177 and identification card for Japanese Nationals were issued to Sasaki by Kmt Administrative Affairs Committee. In January 1948, Hunt, who succeeded Walsh in directing Wu Jen-chieh, stayed on first floor of former Mukden American Consulate. He went to see him four times and Hunt told him to visit him there only until after dark.
“On October 27, 1948, Hunt asked Wu to see him in the former Consulate at 8 next morning and when Wu went there, Hunt took a radio set, a generator and a secret code book in a jeep to Wu’s home.”
Chinese language version in today’s local press has following concluding paragraph:
“Facts of whole case and all kinds documentary proof captured show clearly that so-called Consulate of US Government at Mukden and Army Liaison Group are in fact American espionage organizations whose aim was utilization of Japanese special service and Chinese traitors and Mongol traitors for furthering anti-Chinese people plot activities for destruction of Chinese people’s revolutionary enterprise and world peace. Our People’s Government respecting offenders in that case is going to impose restraints (or ‘controls’) in accordance with law. [”]