761.93/7–3145

Memorandum by the Ambassador in the Soviet Union (Harriman) to the Secretary of State

Mr. Byrnes: When Dr. Soong arrives in Moscow Stalin will expect Soong to have instructions from Chiang Kai Shek to sign promptly an agreement along the lines of Stalin’s proposals presented early in July. Unless the Chinese give in or unless the United States takes a firm position on the interpretation of the Yalta agreement the negotiations will break down and Chinese-Soviet relations will be severely strained.

It would be contrary to the interests of the United States for Soong to go beyond his counter proposals previously submitted and since Soong cannot remain in Moscow after disagreement has arisen, I recommend that I be instructed to inform Stalin at that time:

1)
that at Yalta President Roosevelt declined to agree to Stalin’s original proposal for a Soviet lease of the port of Dairen and insisted [Page 954] upon its internationalization as a commercial free port (as set forth in my memorandum dated July 18);
2)
that we cannot agree to the inclusion of the port in the Soviet military zone or its use as a Soviet naval base, and
3)
that if Stalin does not agree to Soong’s proposal for a free port under Chinese administration with a commercial lease of a certain section of the port for Soviet transit traffic we propose the creation of an international commission consisting of representatives of the Chinese, Soviet, United States and possibly British Governments to supervise the operation of Dairen as a free port.

The differences regarding the operation of the railroads are not as fundamental. I am hopeful that Soong and Stalin will be able to compose the points at issue.

In connection with these proposed arrangements between the Soviet and Chinese governments I recommend that I be instructed to propose to Stalin a protocol, along the lines of the draft attached to my memorandum of July 28, reaffirming in writing Stalin’s verbal assurances to observe the “open door” policy in Manchuria.

W. A. Harriman