893.01 Provisional/182: Telegram

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

17. Following statement was issued here this afternoon at 5 o’clock by the “United Council of the Government of the Republic of China”.

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“There have been reports to the effect that the Kuomintang-Communist faction, which has barely maintained its existence by taking refuge in a remote corner of China, has concluded loan agreements with Great Britain and the United States for the purpose of obtaining military supplies.

Having explicitly declared in its first manifesto that it would not recognize contracts of this kind, the Provisional Government of the Republic of China has rigidly observed this principle since its founding a year ago and is still maintaining vigilance in this respect.

The United Council of the Government of the Republic of China takes this occasion of reaffirming that it would never recognize [the validity?] of the contracts of this kind concluded by the Kuomintang-Communist faction with whatever third parties.

The termination of hostilities and restoration of peace between China and Japan as well as the campaign for driving out communism and bringing about the downfall of the Chiang Kai Shek regime are the firmly fixed aims of the people of East Asia and at the same time represent the main current of the public opinion in China since they are the things about which the people in this country are more concerned.

Great Britain and the United States of America are the two countries which have for long been noted for their knowledge about the situation in China but this time we are unable to understand why these two countries should have failed to take the actual situation into their consideration. It is beyond our comprehension in that England and America should have concluded loans with the Kuomintang-Communist factions despite the miserable strait to which it has been driven with the possible consequence of unnecessarily prolonging the hostilities in China.

England, America and other western countries may be still under the impression that the Kuomintang Government is the government of China and is recognized as such by the people of China. But the fact is that the Kuomintang Government has long since forfeited what confidence the people have placed in it by its maladministration for over 10 years in the past, while the participation of the Communists’ elements into it has made it impossible to command the respect and recognition of the people. Furthermore, Chiang Kai Shek, usurping power for many years, has been unable to understand the true welfare of East Asia and, by his selfishness and obstinacy, has plunged the country into irretrievable path. We simply can find no words to describe the miserable state into which Chiang Kai Shek has thrown the country.

The feeling of the majority of people in China is as described above and still England and America, failing to understand this new situation, are trying to disregard the hopes of the entire Chinese people in seeking the favor of a few individuals. It is very likely that if this is the cause the people in China will come to regard the countries as cursed enemies for a long time to come.

We desire solemnly to point out at this opportunity that the people of China would take no responsibility whatever in future for loans of this kind, that we are absolutely unable to recognize whatever concessions that the Chiang Kai Shek regime might have or may grant in exchange for the loans and that the united Council of the Government [Page 126] of the Republic of China would be compelled to take whatever step that may be deemed necessary against the movements of Communists that the Kuomintang-Communist faction may try to make as compensation for the grant of loans.”

Repeated to Chungking, by mail to Tokyo.