893.00/14016: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received February 24—1:45 p.m.]
87. 1. The third plenary session of the Central Executive Committee, the Kuomintang, convened on February 15 and terminated February 22. A manifesto summarizing the measures and policies adopted was published this morning.
2. Official reports state that 130 members were present and constituted gratifyingly large attendance. In every particular there is reliable evidence that the responsible authorities were disappointed at the failure to attend of several important provincial leaders including the Kwangsi leaders and Liu Hsiang, Provincial Chairman of Szechwan and others.
3. It remains, as always, doubtful whether the deliberations and resolutions passed will influence public opinion throughout China but the published manifesto shows at least that some of China’s leaders have a grasp of the country’s political and economic problems both internal and international.
4. The first section of the manifesto deals with policy toward Japan which is mentioned by name. This section reiterates the determination formed at the second plenary session last July to follow the path of peaceful means of negotiation as long as possible but without tolerating infringement of territorial sovereignty or signing [Page 28] any agreement detrimental thereto. It recalls that “when bandits and irregular troops invaded Suiyuan the Government rallied the strength of the whole nation to defend the province and repulse the invaders”. The manifesto announces the willingness of the Government to continue working for a preliminary adjustment of the Sino-Japanese relations “on the basis of equality, reciprocity and a respect of each other’s territorial integrity” in order to deprive the “bandits and puppets of their present preponderance on external forces and to restore administrative and territorial integrity to China”.
5. Regarding relations with other nations the manifesto announces that China, in matters of political accord and economic cooperation, will work on the principle of reciprocity.
6. The next section deals with domestic policies and economic reconstruction. It declares that China’s guiding principle is that of democracy but significant emphasis is given the assertion that “the interests of the nation as a whole must remain over and above those of individuals and organizations”. Apparently for the benefit of those provincial leaders who did not attend the session, the manifesto emphasizes that the policy of the Government to unify the country through peaceful means does not mean that “any attempt to split the the state” will be nullified.
7. As was anticipated (see my 59, February 4, 2 p.m.), the session devoted considerable time to the settlement of the Communist problem. The manifesto blames the Communist forces for terroristic activities since 1927 “thus undermining the strength of the nation which otherwise they would have employed in resisting alien invasion” and announces that the cardinal policy of the Kuomintang is to eradicate the Communist scourge and insists that it is the duty of the Kuomintang alone to organize and train the masses for the task of national reconstruction. This subject was dealt with at great length in a resolution passed in [February] 21 which reviewed the original leniency of Sun Yat Sen, properly admitting Communists to the Kuomintang in 1924 and their subsequent abusing this through treasonable and rebellious activities up to recent days when the “Communist bandits” having been reduced to straits in the Northwest have begun to announce their alleged willingness to surrender. The resolution states that the Kuomintang is willing to give them a chance to reform but only on four major conditions which in brief require the complete cessation of all Communist activities and propaganda and of “class struggle”.
8. The manifesto next recalls the postponement of the National People’s Assembly and announces its convocation on November 12, this year, for the purpose of adopting a constitution.
9. From the standpoint of the future lying before foreign economic enterprises in China, the last section of the manifesto is the most [Page 29] interesting. This is devoted to economic reconstruction and the policy outlined is one of modified state capitalism. The theories of Marx and of class struggle are repudiated because there is actually no rich class in China. A happy medium is found in the resolution “to increase the productivity of the people China should seek to develop state capital and at the same time to give due protection to private capital”. The manifesto states “China has become poor under the double impact of foreign encroachments and the backwardness of her productivity”. It announces a policy of fostering Chinese private enterprises where they are feasible and of converting into state enterprises large scale industries which by their nature can best be conducted by the Government.
10. See paragraph 7 above. In spite of the stern conditions imposed by the manifesto for reconciliation with the Communist forces there are reliable indications that this reconciliation is proceeding along lines privately agreed upon. An official of the Executive Yuan states that the Communist forces agreed to abandon their Communist principles and ideals provided they were peacefully amalgamated with the Government forces. Another point pointing to settlement of the controversy by negotiations is found in the report that the Government stores of ammunition and money in Sian were returned intact. It is reported that no Communist leaders will be given positions in the government but it is an interesting coincidence if nothing more that (as I have been informed by the Reuter agent) the Minister for Foreign Affairs and the Administrative Vice Minister, his personal adherent, have tendered their resignations since both these officials speak Japanese and admit [being?] nominally of the pro-Japanese faction and their replacement we suggest the appearance of a concession to the demand of the Communists for a stronger attitude toward Japan. It is publicly rumored that their places will be taken by Wang Chung Hui33 and a man of his choice.
Sent to the Department, by mail to Peiping.
- Formerly Judge of the Permanent Court of International Justice at The Hague.↩