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of which was entrusted to the Soviet Union.
In fact, offect has not been given to any of the
above provisions. As far as is known, no negotiations have taken place in regard to the Chinese Changchun Railway,
the Soviet forces continue in occupation of the Liaotung Peninsula including Dairen and Port Arthur, and Dairen has not been opened to international shipping. Indeed, except for the main railway route from the Great Wall to Mukden and Changchun and a perimeter round Mukden, the greater part of Manchuria remains in the hands of the Chinese Communists; in particular there is a solid bloc of Chinese Communist forces between Dairen and the Central Government's Mukden perimeter armies.
The Soviet Government have recently been pressing the Chinese Government to take over the administration of Dairon, but the Chinese Government in the circumstances have felt that before they could
safely do so they must lend Chinose troops there and at Port Arthur. This the Soviet Government refuse to agree to, on the grounds that the Sino-Soviet
agreements referred to above provide that the
defence of the Port Arthur naval base shall be entrusted to the Soviet Union and that Dairen shall be subject to Soviet military control in case of war against Japan. The Soviets claim that a technical state of war with Japan still exists and can only be terminated by the conclusion of a Peace Treaty with Japan.
The Chinese Government issued a communiqué on the 25th June attributing the entire blame for the failure to
/carry