893A.2614/10–1150: Telegram
The Ambassador in the Soviet Union (Kirk) to the Secretary of State
[Received October 11—6:36 a. m.]
853. Embassy officer formerly in Dairen recalls most electric power for Port Arthur–Dairen as well as other parts South Manchuria was supplied by Suiho hydroelectric plant. Generators and most of plant located on Korean side of Yalu River but plant was built as joint enterprise by Japanese utility companies in Korea and Manchuria and designed to supply both areas.
General region Liaotung in Jap times was self-sufficient in electric power on basis thermal plants, majority of which looted by Soviets in 1945. Thus when Soviets cut off power in South Korea in 1948, they diverted supply to South Manchuria. In Dairen if not all Liaotung this power was distributed by Dalenergo, a Sino-Sov trust.
If Suiho is not a casualty from bombing, it doubtlessly will become a source of conflict involving Korean, Chinese and Soviet (Dalenergo) interests. Immediate problems are possibility of equipment removal by Communists to Manchuria, temptation to Chinese to guarantee their interest by physical occupation of plant and danger of incident between Chinese and UN troops. In long run, readjustment to restore to Korea its proper share of power may cause further Chinese antagonism. Astute handling this problem with recognition of valid Chinese claims without sacrifices of principle may well lay foundation for future Chinese-Korean relations, as well as draw attention again to the Soviet war booty operations of 1945 et seq.