893.5151/11–948: Telegram

The Consul General at Mukden (Ward) to the Secretary of State

536. Mayor Mukden called yesterday. He entertains no early hope for negotiation Secretary State drafts because absence foreign trade and banking connections abroad needed handle negotiable instruments, (mytel yesterday.41a) His interest in continued existence this office was deflected [reflected] in statement, when I remarked we shall henceforth be dependent upon our ability establish communication channel enabling us receive United States dollars from outside, that [Page 830] should we become short of funds at any time he would see that we do not go hungry.

He interposed no objection our courier service to Mukden and volunteered that once our couriers enter liberated area they will be accorded every facility necessary enable them execute their mission. In discussing divers routes courier travel (1) by rail through Soviet Union, (2) water to Dairen or some liberated port (Antung, Hulutao, et cetera) and rail thence to Mukden and (3) by air from Shanghai or Tsingtao, I stressed desirability air service. He emphasized inability render any assistance facilitating courier travel through and within Dairen and Soviet Union, where travel is subject to Soviet law and regulation, and stated that travel Dairen if feasible would probably be most convenient. He added that matter courier air service would have to be given further thought.

Mayor stated Mukden–Antung railway traffic was restored November 6.

In discussing American community, he remarked upon absence American businessmen, which I stated was result World War II and thereafter civil war which deprived Mukden of normal communication with sources supply and I added that I should be glad if Americans will be able to return to Manchuria for business or professional reasons. He hastened assure me Americans will be welcome and that he hopes American business will resume trade with Manchuria “on the basis of equality”. He added outside world has goods needed in Manchuria and this area has products needed by outside. I confined my remarks to generalities for reasons (1) have no recollection any Department statement on our attitude toward American trade with Chinese Communists and (2) am informed Bureau of Commerce and Industry about to be established in municipal government and this bureau will be charged with establishing regulations governing domestic and foreign trade. One official of municipal government has informed Mukden manager British-American Tobacco Company that beyond imposition and collection of taxes and duties new regime will not interfere in domestic or foreign trade conducted by foreigners. This statement is too general, however, for it is apparent regulation and machinery must be set up for foreign exchange operations incidental foreign trade. Mayor seemed sincere in his stated desire early inauguration foreign trade by Americans.

Upon leaving I accompanied Mayor through offices, mentioning functions we perform or are prepared to perform, showing him USIS reading room and our commissary sales room, preferring he have first hand knowledge these institutions rather than distorted second hand, and am as yet without opinion whether Mayor is figure officer or only puppet and whether he functions on policy level or only operational. [Page 831] He gives definite impression of desiring be friendly and helpful. His visit lasted over hour and a half.

Department pass Nanking 669.

Ward
  1. Telegram No. 533, November 8, 1 p.m., not printed.