893.20/786

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

No. 1254

Sir: I have the honor to enclose a memorandum of conversation of May 18 between Mr. Vincent and General Hsiung Shih-hui, recently head of the Chinese Military Mission to the United States and probable new head of the National Planning Board. Mr. Vincent suggested that this memorandum might be held until General Hsiung’s appointment should be gazetted, but it is believed that it is of sufficient [Page 63] interest to send it forward without further delay, whether or not General Hsiung actually receives the appointment in question.

As pointed out in the memorandum, the reported decision of the Generalissimo to appoint General Hsiung as head of the National Planning Board is another indication of General Chiang’s determination to make China militarily strong and self-sufficient and of the Kuomintang’s cynical attitude toward the possibility of a real “new order” after the present war.

Incidentally, General Hsiung is reported to be, following his return from the United States, strongly anti-American and to have developed an inclination to align himself with members of the so-called “Peace Party” who favor making an endeavor at some appropriate time to come to terms with the Japanese.

Respectfully yours,

George Atcheson, Jr.
[Enclosure]

Memorandum of Conversation, by the Counselor of Embassy in China (Vincent)

General Hsiung Shih-hui was at last evening’s Foreign Office dinner and having learned confidentially that he is to replace Dr. Wang Shih-chieh as head of the National Planning Board, I took the occasion privately to congratulate him and to comment on the importance of the post because of the need for constructive post-war planning on a broad scale. During the conversation I remarked that, in my opinion, the great problems of China’s development, in the order of their importance, were: improvement of agriculture, finance, communications and industry. General Hsiung took immediate exception, saying that China’s first problem was military security particularly in the north; and that that was the reason the Generalissimo was putting him, a military man, at the head of the Board in the place of the present civilian.

This decision is another indication of the Generalissimo’s determination, shown in his recent book, China’s Destiny, to make China militarily strong and self-sufficient, and of the Kuomintang’s disillusioned attitude toward the possibility of a real “new order” after the present war. There is a general distrust and suspicion of Russia and an expectation that China and Russia will find themselves in conflicting positions in the post-war period.

John Carter Vincent