761.93/8–1049: Telegram

The Consul at Shanghai (McConaughy) to the Secretary of State

3164. Three prominent American businessmen with close well-informed Chinese contacts have separately repeated to us information from Chinese sources whom they regard highly, all agreeing re main thesis re Soviet pressure on Mao Tze-tung.

[Page 479]

Stories all agree that Kremlin, strongly disapproving Mao’s deviationist tendencies and unsatisfactory declarations subservience Moscow, forced Mao adopt strongly pro-Soviet line in his July 1st statement. (According one source, special Soviet emissary sent to Peiping for this purpose.) Mao, indignant but helpless in face powerful Soviet forces along border, has since sulked, refraining from public utterances (notably on Red Army Day August 1 when he would normally give one) and actually sick, according one report.

One source had it that Moscow much displeased over recent wide circulation and popularity of Mao’s “New Democracy” (supposedly written under influence of later discredited Pletkhanov65) in Europe satellite countries.

In recent talk with officer ConGen, Han Ming voiced similar belief re Mao’s July 1 speech being written under Soviet pressure; and said that Soviet pressure on Chinese Communists is reflected from top to bottom of Communist hierarchy, with every Communist watched by other Communists and afraid express anti-Soviet views.

While ConGen unable evaluate this information, it believes worth reporting as at least moderacy of newly issued Shanghai labor regulations and alleged basis hope for easier treatment Shanghai foreigners (ReContel 3007, August 366).

Another possible straw in wind and illustration of difficulty evaluating conflicting evidence re strength of Soviet hand in Shanghai is report which we attempting verify that Soviet Russian language paper (presumably Novosti Dnya) due financial reasons has applied for suspension and been refused by authorities.

As somewhat related to above may also be reported conviction here among some observers that blockade is having inevitable effect force Communists more into Soviet arms through dependence on Soviet economic help and that it may well have been factor in hastening recent Manchurian trade agreement.

Sent Department; repeated Nanking 1735, OffEmb Canton 981. Department pass Peiping 25.

McConaughy
  1. Perhaps G. V. Plekhanov, theoretician of Russian Marxism.
  2. Not printed.