893.00/14904: Telegram

The Ambassador in China (Gauss) to the Secretary of State

1405. Embassy’s 1334, November 16, 10 a.m.

1.
Generalissimo advocated organization of a new Ministry of Economic Control but was dissuaded from forcing the issue by sincere opposition in CEC which pointed out difficulties of administration. Chiang it seems at one time considered assuming headship of new Ministry himself due to inability to find suitable chief but probability that new Ministry would fail in accomplishing its objective [Page 258] was used as argument to prevail upon him to drop this idea. Economic Affairs will apparently continue to be administered as in past but with attempt at greater effectiveness in meeting the serious economic situation.
2.
It is reliably reported (a) that Chen Yi has been unsatisfactory as Secretary General of Executive Yuan and will be succeeded by Chang Li-sheng, “C–C” party politician, former Minister of party organization and (b) that Wang Shih-chieh will resign as Minister of Information to be succeeded by Cheng Tien-fang, former Ambassador to Berlin.
3.
It is further understood that Ministries of Information and of Justice will be placed under the Executive Yuan. The former has been “party” ministry and the latter ministry under Judicial Yuan.
Gauss