793.94/8290: Telegram

The Counselor of Embassy in China ( Peck ) to the Secretary of State

312. Source believed reliable states that Chiang Kai Shek proceeded from Nanking to Sian, Shensi, by airplanes yesterday accompanied by about 20 officers. Press announces purpose as inspection of the bandit suppression activities but there is a rumor that the Communist leaders Chu Teh and Mao Tse Tung have again offered to submit to the National Government in order to fight the Japanese and that Chiang intends to negotiate terms leading to inclusion of the Communist forces in the Chinese Army. I will endeavor to ascertain possible basis of this rumor.

Sent to Peiping.