893.00/11–2849: Telegram
The Consul General at Peiping (Clubb) to the Secretary of State
[Received November 29—5:06 p. m.]
2110. In course conversation November 23 Chang Tung-sun94 expressed serious concern re political situation. I said it appeared economic problems were at present probably more exigent. Chang agreed re seriousness economic situation but reverted politics, stating he feared international political questions would in due course constitute grave domestic problem for Chinese leaders.
Chang reported that there was never any discussion either high level or low of major political problems in Government, that neither Communist leaders nor Soviet talked to “us” (democratic personages?) re either major policy or current matters major import; they just went ahead and did things and Government was confronted with results. Chang agreed this procedure was facilitated by absence laws and rules, [Page 613] thought situation on other hand was seriously complicated by attempt to do everything at once.
He said ultimate problem in essence was whether China would proceed with its own solutions and handling of affairs, or whether it would merely follow direction from outside. He agreed difficulties here being experienced with ignorant cadres in respect to political orientations, but said that even some democratic personages still failed realize implications developments. Others, however, “even some at top”, are beginning see difficult situation without knowing what to do about it.
Chang agreed situation most critical in that respect in Manchuria. He professed ignorance respecting amount of grain shipment and other operations under Manchu[ria]–USSR trade pact, stating none had seen text pact and none Peiping knew what was shipped out or in, none had seen machinery presumably obtained from USSR in exchange, none knew how commodity values were determined in implementation pact. USSR, he agreed, was still advancing in Manchuria.
[Garble] gave Chang copy brochure containing Yugoslav–USSR CP correspondence and he showed awareness [garble] position China and that Yugoslavia 1948, particularly with respect advisors, technicians.
Italian source reports “second Borodin”95 resides in quarters adjoining Soviet Embassy which have guard posted outside gate (which remains without signboard indicating agency within). Sovietized White Russian, whose duties take him there occasionally, reports that his account with personage residing therein is only in name “Mr. X”.
Information believed reliable indicates 563 special aliens resident certificates were issued up to about middle November.
Sent Department 2110, Department pass Shanghai 1230.