893.00/13853: Telegram

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

3. Rumors have persisted in Nanking since before the detention of Chiang Kai-shek in Sian that while there he held interviews with one or more important leaders of the Chinese Communist forces probably at the instance of Chang Hsueh-liang and that some sort of understanding [Page 11] was reached (1) that active hostilities against those forces would cease, (2) that the Communist forces would at some time be given financial support by the National Government and, (3) that very gradually officials sympathetic with the Soviet Government would be introduced into the National Government. The Embassy feels that although it has not been possible to confirm these rumors their persistence warrants this report to the Department.

Repeated to Tokyo, code text by mail to Peiping and Shanghai.

For the Ambassador.14

Peck
  1. Nelson Truster Johnson, at Nanking.