893.00/15385: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received 10:14 p.m.]
901. 1. Reliable and usually well informed Chinese observers generally feel Kmt–Communist negotiations now being carried on at Chungking will not produce any real solution of problem and that little progress has been made to date. Some Chinese say that possibility exists of arrangement under which Communist forces will be organized into 12 divisions under Chungking control for action in Shansi, Hopei and Shantung but that whatever settlement is reached will depend upon extent of Jap threat to Sian area, Kmt willingness to compromise being in direct ratio to danger of Jap thrust from Honan west. In telegram from Sian May 21, Drumright reports Sian talks [Page 427] believed to be unproductive of results even on minor points. Chinese sources anticipate CEC resolution on Communist problem at end current session mild in tone but as indecisive as that of CEC decision of ’43.
2. Lin Tsu-han, Wang Shih-chieh and Chang Chih-chung, who discussed issues with Lin at Sian, seemed to be without authority and made no offers. They will apparently continue to represent Kmt in discussions here. Lin’s interviews with Generalissimo and Ho Yingchin since arrival have been perfunctory.
Kmt insists that discussions concern “concrete questions” and refuses to include general subjects such as democratic reform. Kmt intimates terms to be proposed are substantially those offered Chou En-lai and Lin Piao in 1943 equivalent to Communist surrender without guarantee for future rights and protection. Embassy’s telegram 1012, June 24, 2 p.m.51 Communist terms are as set forth in Chou En-lai’s speech at Yenan March 12 (Embassy’s despatch 252 [2520], May 1): recognition legality Communist Party; recognition border region and guerrilla base governments as legal local self governments; incorporation Communist armies into National Government Army under conditions [of] equal pay, supplies and arms; lifting blockade. Communists “requesting” several preliminary concessions such as reestablishment radio communication between Chungking and Yenan and release of political prisoners including Yeh Ting (Comor [former Commander of] New Fourth Army) and over 100 former members Sinkiang provincial government turned over to Central Government by Sheng Shih-tsai in 1942 but no indication, [they] will acquiesce. Chou En-lai and other Communist leaders not likely to come to Chungking unless considerable improvement occurs in chances for successful negotiation. In view apparent lack Kmt good intentions in discussions, it is believed Kmt initiated talks primarily because of foreign criticism in effort to convince foreign and Chinese opinion Kmt seeking compromise and failure to reach agreement rests with Communists. Kmt tactics unconvincing as long as they refuse to divulge terms offered to Communists and veil negotiations in secrecy.