893.00/15256: Telegram

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

258. 1. General Ho Ying-chin, Minister [of] War, during interview with New York Times correspondent February 4 twice categorically stated there would be no civil war as Chiang Kai-shek determined seek political solution of Communist problem. He stated confidentially Communists expected send General Chou En-lai (former Communist representative Chungking), General Chu Teh (Chief of Staff Communist armies) and Lin Pai-hsu (chairman Yenan border region government) to Chungking to discuss settlement; explained closure 18th Group Army radios Chungking (Embassy’s 119, January 18) and Sian was measure applied to all Group Army radios for reasons safety, security due previous leakage information, including General Chiang’s Cairo trip; described seizure of suspects in Sian area as Shensi provisional [provincial] government measure directed against Jap agents, not against Communists; admitted small number (rumored to be 12 to 18) Chinese planes had recently flown to Sian area but said movement was military operation not connected with Communist situation; and asserted Chungking troops in Shensi border areas now fewer than in November due withdrawal one army.

2. Local Communists say they first heard of possible Yenan delegation few days ago when Chiang summoned Communist representative, informed him Central Government had been told of possible Yenan intention send delegation to Chungking and said he would be willing to receive such delegates. Communists here state Yenan informed them Lin would probably come here within next 2 or 3 months and that if his talks indicate possibility success Chou En-lai and Chu Teh might come for further negotiations.

3. Reliable Briton, recently arrived Chungking via Yenan after 2 years residence Hopei Communist area, states in strictest confidence Communists receive support all classes people in areas under their control as people have voice in Government and propaganda and education based on united front against Jap and not communism and that less tension and evident preparation for possible Kmt–Communist clash in Yenan area than in Chungking controlled portion Shensi.

4. Local Communists have recently manifested great concern over situation in border region, pointing to closure radios, increase in Chungking troop material, transfer Chungking planes that area and roundup Communist suspects as indications possible Kmt attack on border region but prolonged negotiations may avert through danger [Page 329] period crisis [sic]. They apparently expect no real compromise from either side in negotiation. Present Government commanders said to have held military conference in Sian area in mid-January under guise of military training class attended by General Chu Shao-liang (Commander 8th War Zone) and others. Tai Li reliably reported at Lanchow in January for conference with Hu Tsung-nan. Despite all these signs, we believe that situation remains as reported in our 119, January 18, and that, while present is danger period during which Kmt diehards might favor attack on Communists prior to end European war when Soviets would be free to turn attention to Far East, both domestic and international considerations seem to make civil war unlikely at this time.

Gauss