893.00/9–1448: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received September 15—1:06 a. m.]
1680. During first week of September North Shensi news agency broadcasts reported in detail on achievements of North China Provisional People’s Representative Congress and hailed inauguration of North China People’s Government as milestone in China’s democratic revolution.
While admitting that Congress was only provisional in nature and limited to North China, much stress was placed on importance of undertaking political, economic and cultural construction that area. Emphasis was placed on idea that people were masters of their own destinies and that Congress was a truly democratic [one] and devoid of any discrimination of race, creed or sex with members of all classes and groups represented in Presidium. In further attempt to prove this point it was argued that U. S. while claiming to be most democratic state subjected Negro population to numerous racial and political discriminations.
Accomplishments of past 2 years by governments of two border regions were reported on in detail. In work of supporting front main stress placed on great number enlistments in Army and high political consciousness of peasants. Progress in land reform, agricultural and industrial production and economic reconstruction were highlighted.
Kmt currency reform measures came under attack as “unprecedented fraud” and attempted despoliation of people’s wealth engineered by Chiang Kai-shek and four families. It was maintained that measures were last desperate attempt of “Chiang Kai-shek’s gang” to swindle people of all gold, silver and foreign exchange and amass wealth of country in Central Bank, allegedly “treasury of four families” in preparation for their flight abroad before final defeat.
[Page 459]Gold yuan note was ridiculed as lacking reserves and being unredeemable for gold or foreign currency. While admitting that “Kmt suppression and deception and American imperialist material aid” might have temporary dulling effect, it was predicted that currency reform would accelerate economic bankruptcy skyrocketing prices, revival of blackmarket and speculation and outcome would be final collapse of Kmt “reactionary rule”.
Founding of All Chinese Federation of Labor was hailed as most significant achievement of Sixth All China Labor Congress. According to one report, two most important provisions of program were for direct participation of workers in management of all public enterprises through “democratically elected factory administration committees” and direct workers representative conferences. Emphasis was placed on cooperative pooling of workers’ knowledge and experience, establishment of minimum scales of wages, hours and conditions, system of graduated wages based on skill, output and technique, equal pay for women, safety provisions, education and technical training. All technicians and experts from Kmt areas were invited to join people in “industrial construction of liberated areas”.
In broadcast to All Overseas Chinese, Labor Congress appealed to industrialists and businessmen to unite with people of China and join fight for freedom from Kmt rule. Kmt regime flayed for attempting convert China into colony of American imperialism and plunge whole Chinese people at home and abroad further into life of slavery.
War communiqués continued to play up Kmt losses on all fighting fronts with occasional reference to capture of Japanese soldiers fighting with Kmt troops. Reference was also made to continued bombing and strafing of Yellow River dyke workers by “American-made planes”.
Sent Department as 1680, repeated to Moscow.