861.77 Chinese Eastern/1322: Telegram
The Ambassador in the Soviet Union (Bullitt) to the Secretary of State
[Received August 27—12:40 p.m.]
273. My 272, August 25, 5 p.m.85 Soviet press publishes today Tass communiqué in reply to Japanese statement of August 21 and “Manchukuo” statement of August 23 concerning Chinese Eastern Railway negotiations in substance as follows: Japanese-“Manchukuo” statements reproduce exactly Soviet figures previously published and gave subjective and one sided interpretation. Declaration of “Manchukuo” that 170 million yen offered obtained by including 50 million indemnity to Soviet and “Manchukuo” employees in case of dismissal. Evident that dismissal or nondismissal of employees is question which exclusively regards new owners who would naturally [Page 264] be expected to pay indemnity in case of dismissals, an expense under no circumstances to be included in the purchase price of the line.
The fact that the difficulties over the Chinese Eastern Railway have entered field of polemics has created the impression here that such tension as existed is somewhat relaxed.
- Not printed.↩