893.00/15042: Telegram

The Chargé in China (Atcheson) to the Secretary of State

1012. 1. In a recent conversation with an officer of the Embassy General Lin Piao, Communist Party representative from Yenan, made comment in regard to Kuomintang-Communist relations as follows:

Chiang Kai-shek, during a conference on June 6 with Lin and General Chou, Communist Party representative at Chungking, informed them that his views regarding the differences between the two parties had not changed; that is, the Communist Party should give up its government and army, the party to be given the choice of joining the Kuomintang or of becoming a minority party like other parties now existing in Free China. (Although Lin came to Chungking in October 1942 at the invitation of the Generalissimo, as reported [by] Embassy’s 654, May 6, 10 a.m., Lin has seen Chiang only three times and has been waiting for this final interview for more than 6 months.) The Gmo did not present other terms as a basis of discussion of differences.

Lin and Chou plan to depart for Yenan within a few days to discuss matters with Communist leaders there. The former is not optimistic that a settlement can be reached but he does not, on the other hand, think that a clash is imminent. He is of the opinion that the Gmo will have to take into consideration a world trend toward democracy arising from the anticipated United Nations victory and that Chiang will not attempt liquidation of the Communists by force even after the war, although he admits that such a possibility cannot be completely dismissed.

2. According to an informed source close to the Communist Party, Lin and Chou are returning to Yenan at this time in order to obtain Communist agreement for some statement to be released at Chungking on July 7, the anniversary of the beginning of the Sino-Jap war, indicating that Kuomintang-Communist relations have improved. This informant states that Chou feels the need of acquainting himself at first hand with conditions at Yenan and of giving the Communist leaders the real picture of the situation at Chungking. Lin and Chou are proceeding with four truck loads of non-military supplies, two of them medicines. (The Central Government authorities have not heretofore permitted the shipment of medical supplies to Yenan for some time.)

3. During the conversation above mentioned Lin made the following additional remarks: general developments in China now depend, and after the war will continue to depend greatly, on international [Page 258] developments (for example, American air victories in China boost Chinese morale and spirit and strengthen the hands of the Chungking Government against the puppets and dissident provincial elements). China can and will continue to resist Japan because the Chungking authorities realize that a negotiated peace with Japan would bring civil war and worse conditions than those which exist at present and because they feel assured of a United Nations victory. Chungking’s lack of military effort against Japan is to be adversely criticized. The Central Government favors a Jap attack against Soviet Russia (this is unlikely) which would require troop withdrawals from China and permit Chungking to occupy the evacuated areas including North China. Liberal elements exist in China, even in the Kuomintang, and this gives hope for the future of democracy here.

Atcheson