The Second Secretary of Embassy in China (Davies) to Mr. Harry Hopkins, Special Assistant to President Roosevelt 16

Dear Mr. Hopkins: Following up the conversations which General Stilwell and I had with you and the President at Cairo, I enclose a memorandum which I hope will be of interest.

[Page 398]

From time to time I expect to prepare other brief memoranda on various problems confronting us in East Asia and shall send you copies.

Should you wish to discuss Far Eastern Questions with experts in Washington, I have two names to suggest: John Carter Vincent and Laurence Salisbury. Vincent’s name, I recall, you knew. He is now with FEA. Salisbury is a Japanese language officer, as Bohlen is Russian and I Chinese. He has served in both Japan and China, investigated on special orders from the State Department the Japanese occupation of Manchuria and until a month or two before Pearl Harbor served as political adviser to Sayre in Manila. He has since been Assistant Chief of the Far Eastern Division, handling Japanese and Korean matters.

Sincerely yours,

John Davies, Jr.
[Enclosure]

Memorandum by the Second Secretary of Embassy in China (Davies)

[Extracts]

Chiang Kai Shek and China

. . . . . . . . . . . . . .

Japan’s attack caught China in mid-passage between semi-feudalism and modern statehood. External pressure in the form of Japanese aggression imposed a temporary unity on the various elements struggling to determine whether China was to develop along democratic or authoritarian lines. Public pressure compelled Chiang, who was the strongest of these elements, to become the symbol of a unified national will. The internal conflict was suspended.

This situation continued so long as the Japanese attempted to bring China to its knees by military means. But after the fall of Hankow in 1938 the war entered a period of military stagnation which has continued until now. Japan adopted instead a shrewd policy of political and economic offensives designed to bring about Chinese disintegration and collapse. Confronted with this new Japanese tactic, which promised him some respite at the expense of other Chinese elements, Chiang chose to abandon Chinese unity and retrogressed to his pre-war position as a Chinese militarist seeking to dominate rather than unify and lead.

. . . . . . . . . . . . . .

Because his Kuomintang the centrifugal forces in China are growing under prolonged economic [Page 399] strain and because the Soviet Union may join the war against Japan and enter Manchuria and North China, the Generalissimo faces next year the gravest crisis of his career.

What form and course the crisis will take is impossible to predict. Certain contributory factors, however, are clear. One is the increasingly independent attitude of the Chinese Communists, who now say that they no longer fear Chungking. “If Chiang wants to commit suicide on us, that suits us.” Another is the accelerating economic disintegration. A third is the growing restiveness of certain provincial and military factions. Any one or a combination of these may be sufficient to accomplish Chiang’s downfall.

By reversing his policy of sixteen years’ standing, reforming the Kuomintang and taking the lead in a genuine united front, Chiang could surely survive the crisis. But the Generalissimo is not only personally incapable of this, he is a hostage of the corrupt forces he manipulates.

In this uncertain situation we should avoid committing ourselves’ unalterably to Chiang, We should be ready during or after the war to adjust ourselves to possible realignments in China, We should wish, for example, to avoid finding ourselves at the close of the war backing a coalition of Chiang’s Kuomintang and the degenerate puppets against a democratic coalition commanding Russian sympathy.

The adoption of a more realistic policy toward Chiang Kai-shek does not mean abandonment of our objectives (1) to capitalize during the war on China’s position on the Japanese flank, and (2) to build up after the war a strong and independent China. On the contrary, it will mean that we shall be more likely to achieve these objectives. A realistic policy toward Chiang would be based on (1) recognition by us that the Generalissimo is highly susceptible to firm coordinated American pressure, (2) stern bargaining (in consultation with American representatives in China) and (3) readiness to support a strong new coalition offering cooperation mutually more beneficial to China and the United States.

  1. Copy obtained from the Franklin D. Roosevelt Library, Hyde Park, N.Y.