893.00/14893: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received October 24—1:58 p.m.]
1221. The Third Peoples’ Political Council held its inaugural meeting on October 22 with 204 delegates in attendance.
Lin Sen, Chairman of the National Government, in address to Council expressed belief that China was progressing toward democratic principles of Sun Yat-sen but warned that attainment of democratic government must be gradual; stated that with abolition of extraterritoriality57 China’s international position higher and responsibilities and sphere of war action greater; and that people must work together with government to enable China to fulfill obligations as one of United Nations and to achieve its objectives.
Generalissimo Chiang Kai-shek addressing Council stated China was the most important member of forces fighting on continent of East Asia but was no longer fighting alone; that China has already [Page 252] passed from defensive to offensive; that Japanese [army?] is now encountering reverses and difficulties and faces future of uncertainty; that Soviet Russia has not relaxed her vigilance on Siberian front; that collaboration between China and Great Britain, the United States, Russia and other Allies has increased and financial and material assistance to China has resulted therefrom, and that abolition of extraterritoriality gives added responsibility to China which must assume equally heavy share of war burden. He named four important points in present situation: (1) defeat of Axis certain, (2) war will be long, (3) Allied war production assures victory, and (4) post-war world will be one of equality and freedom among nations; referring to action taken on economic front by American Government and to lack of effective measures in China, enumerated four points for guidance of Council: (1) prevailing tone of social life must be changed and frugality emphasized, (2) prices must be stabilized, (3) wartime financial policy must be founded upon direct taxation, subscription to public loans, collection of land tax in kind and promotion of savings, and (4) conscription of man power for military and labor service should be supplemented by voluntary enlistment and prevention of evasion and abuse; and concludes with appeal for awareness of responsibility on part of government and people following promise of abolition of extraterritoriality by Great Britain and United States.