861.77 Chinese Eastern/113: Telegram
The Minister in China (MacMurray) to the Secretary of State
[Received July 25—12:40 p.m.]
633. (1) As supplementary to the conversation I had with Sun Fo, reported in my 630, July 25, 6 p.m., I offer the comment which follows.
(2) It appears to be amply evident, from all the Chinese official and press references at the time to the matter, that in ousting the Russian staff it was the intention of the Chinese authorities to obtain possession and control of property and revenues of the Chinese Eastern Railway. The subsequent statements made by the Minister for Foreign Affairs and by the Minister of Railways that dismissing Soviet nationals was a means merely to suppress hostile propaganda, with no intention of prejudicing Russian legal rights in said railway, appear clearly to be a result of the realization that maintaining publicly the position taken is not possible without discrediting the Chinese Government in the world’s general opinion. Nevertheless, it remains to be seen if the Chinese Government, in direct negotiations with Russia, will yield any substantial part of its actual possession and control at present.