893.00/14910
The Ambassador in China (Gauss) to the Secretary of State
[Received December 14.]
Sir: I have the honor to refer to my despatch no. 703 of October 29, 1942,63 and to my telegram no. 1262 of November 263 concerning the Third People’s Political Council and to enclose for the Department’s information the following material63 concerning the recently concluded session of the Council:
Central News Agency (Government-controlled) despatch summarizing Generalissimo Chiang Kai-shek’s program for intensified control of commodity prices.
PPC Resolution approving adoption of the Generalissimo’s program.
PPC Resolution adopting the report on the control and stabilization of commodity prices submitted by the Council’s Committee on Financial and Economic Affairs.
List of Resolutions passed by the PPC as reported by the Central News Agency (in English language despatches).
Supplementary list of Resolutions passed by the PPC as reported by the Chinese press.
Speech delivered by Generalissimo Chiang Kai-shek at the closing session of the PPC.
The Third People’s Political Council devoted its discussions, interpellations and resolutions primarily to economic and financial problems which were stressed in the speeches delivered by the Generalissimo and by Dr. Chang Po-ling as Chairman pro tern at the inaugural session. The Generalissimo’s suggested program for an intensified control of commodity prices describes the causes and effects of the commodity price situation and sets forth remedial measures therefor: (1) the central direction of the price control machinery shall be placed in the hands of the National General Mobilization Committee and the [Page 256] executive work done through the various ministers, with particular attention to be given to the creation of provincial and district price control machinery; (2) the actual control shall consist of the imposition of price ceilings, the control of commodities, the promotion of production, the restriction of consumption, the improvement of transportation, intensification of currency and credit control, the adjustment of taxes, the retrenchment of the national budget, the mobilization of man power and the allotment of a substantial appropriation for the price control work. The Council after adopting the program suggested by the Generalissimo passed a resolution approving the adoption of the report on the control and stabilization of commodity prices submitted by the PPC Committee on Financial and Economic Affairs. This report which supplements and amplifies the Generalissimo’s program sets forth recommendations concerning the general principles to be followed, the control machinery, the control measures and inspection and reward and punishment.
Other matters to which the Council gave considerable attention were the development of the Northwest and border regions, education (including promotion of education among Moslems, Mongols and Tibetans), development of industry, mining and communications and Overseas Chinese. The attention devoted to Overseas Chinese is particularly significant embracing as it does resolutions calling for rehabilitation of Overseas Chinese enterprises in the South Seas after the war, governmental aid for such enterprises, equality for all races in the South Seas, government instruction and guidance for those Chinese going to the South Seas and promotion of Chinese education in Malaya after the war. It should be noted that there is no indication in the newspaper reports of the Council’s meetings of any recognition of Chinese participation in the war nor is there any criticism of the Chinese military effort. That is also true with respect to the question of democratic government, for there seems to have been little or no discussion of the elements of democracy or demand for constitutional government. Dr. Wang Shih-chieh, Secretary-General of the PPC, states that the Council passed a resolution calling for the speeding up of the establishment of district councils, said by him to be the real basis for representative government in China through their power of election of members of the provincial assemblies. Dr. Wang also states that the Third People’s Political Council was the most representative group ever elected to membership and that the discussion and criticism of the Government’s policy had been freer during the recently concluded session than during previous sessions. This he ascribes to the fact that a majority of the delegates was elected whereas in the past the majority had been appointed by the Government. [Page 257] Represented among those delegates were nonparty engineers and professional men who were often critical of the Government’s increasing encroachments upon the field of private enterprise.
Transmitted herewith is also a memorandum of conversation with Dr. Wang Shih-chieh concerning the Third People’s Political Council.64
News despatches of the Council’s proceedings gave little prominence to the field of international relations, the announcement of the impending abolition of extraterritorial rights by the United States and Great Britain apparently having prevented wide discussion of such an objective. In this connection, one resolution was passed pointing out to the Government the necessity of the abrogation of all rights and privileges enjoyed by foreign powers in China that contravene the principle of equality and another was adopted requesting the government to draft a program for inviting Allied capital and technical cooperation. The Embassy has been reliably informed that Dr. T. V. Soong, at a session of the Council in camera, stated that he felt confident that the United States would give to China after the war the necessary economic and financial assistance for China’s reconstruction.
Dr. Wang Shih-chieh and General Wu Teh-chen, Secretary-General of the Central Executive Committee of the Kuomintang, have informed the Embassy that there is being prepared for transmission to the Embassy a compilation of certain non-confidential reports of the proceedings of the Council which are not being released for publication. The Embassy will forward such material to the Department upon receipt thereof.
Respectfully yours,