893.00/4–1747: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received April 17—6:07 a.m.]
828. Following is Mukden’s 63, April 11:
“Rumors of Soviet assistance to Chinese Communists have been fairly persistent during past 2 months. Most common theory is that Soviets have been sending Communists military supplies from north Korea. Today’s local papers go so far as publish report from Tunghua (125 miles east Mukden) that newly established Communist base at Linkiang (east of Tunghua) is constantly receiving ammunition by rail from Korea and that recent military conference there was attended by several advisers of “certain nationality”. It appears likely that Communists have in fact been importing gold bars to pay for purchases from north Korea. While not precluding possibility Communists have received and are receiving military aid, am inclined believe that more likely Communists have been getting supplies in return for gold and agricultural products and that such commerce has been more in nature ordinary trade than of military aid in strict sense.”
Embassy has likewise thus far received no dependable evidence of physical Soviet assistance of a military character to CCP. Communists are undoubtedly seeking every possible avenue of trade including Nationalist regions. Embassy suggests that most likely source any gold obtained by Communists would be transactions with Nationalist areas.