893.00/7–1448: Telegram
The Consul General at Tientsin (Smyth) to the Secretary of State
[Received 11:34 a. m.]
204. On my recent return to Tientsin after 5 months’ absence, I found local Chinese military, civil leaders, press, and many civilians increasingly bitter over National Govt policy of favoring south against north. They consider North China has been deserted by National Government, and feel this area has been discriminated against as [Page 356] regards relief supplies, military supplies, allotment of foreign exchange, and other ways.
Present opinion among Chinese here is that National Government is making deliberate effort to create impression with American authorities that North China is lost and should not be considered in any American aid plans. Chinese here do not concur in this defeatist theory. They consider military situation North China is much better than Honan, Shantung, Hupeh, et cetera. Particularly since Fu Tso-yi assumption control 6 months ago, military operations against Communists have been conducted with more ability and success than in other areas. They state competent military leaders in North China have been unable conduct full effort against Communists, due lack of cooperation, funds, military supplies from Central Government.
Chinese officials here assert North China can be held against Communists if given fair proportion of American economic and military aid before it is too late. They point out military aid should accompany economic aid to [the] Kailan mines [and it] would be more secure if mines and railway have more adequate military protection. According to these Chinese, Fu Tso-yi has raised and partially trained 100,000 local militia in North China, but they have no arms; they say if arms for this number can be supplied, North China can be held against Communists.
Chinese here mention reported plans to use American aid to develop and improve mines, railways South China, harbors, docks, Canton, Shanghai power plants, water works, industries South China, and comment on apparent aid to North China not be neglected and be given fair share. Recent visit Stillman93 group to Tientsin has given some encouragement, but Chinese here feel National Government will block aid to North China unless American pressure is applied. Chinese here consider that if North China is lost, rest of China will follow sooner or later, also if North China is lost, due to deliberate refusal, National Government would meet bitter resistance in future effort to recapture area.
North China people in general do not want Communism and would prefer continue allegiance to National Government if Government would assist North China and effect some reforms. Chinese here feel that if National Government continues to refuse help, North China will have to decide on future policy, whether to continue to resist or endeavor to make other arrangements. Mere Government promises to help will be futile, only concrete action in form of aid visibly arriving in North China will be effective.
[Page 357]During Stillman trip to Tientsin July 7 to 9, he visited Kalian mines and had discussions with Mayor of Tientsin94 and representatives of North China railways, power and other utilities and Tangku new harbor, also Chinese and American businessmen. His visit and proposed visit of Mr. Lapham have created good impression and raised North China hopes.
Tientsin American Chamber of Commerce is sending memorandum to Lapham, urging strongly aid for North China. Copies being forwarded to Department, Embassy, Shanghai, Peiping.
Sent Nanking 372, repeated Department 204, Shanghai 339, pouched Peiping.