893.00/15412
The Ambassador in China (Gauss) to the Secretary of State
[Received June 12.]
Sir: Referring to the Embassy’s telegram No. 901, May 24, 2 p.m. in regard to the current discussions at Chungking between Kuomintang and Communist representatives, I have the honor to enclose a copy of a memorandum of May 20, 1944,61 written by Second Secretary John S. Service, on detail to General Stilwell’s staff, reporting comments made to him by Lin Tsu-han (also known as Lin Paihsu), Chairman of the Yenan Border Government, on Kuomintang–Communist relations and conditions in the Communist areas in north China.
The Embassy’s reference telegram summarized the observations made by Mr. Lin in regard to Kuomintang–Communist relations. The substance of his comments on conditions in the Communist areas is as follows:
The two primary problems in the Communist areas are food and textile fibers for clothing. Although conditions are difficult because of the poverty of the country and the effects of the Central Government blockade, the economic strength and self-sufficiency of the areas are increasing. Taxation is progressive, based upon a person’s surplus [Page 434] and means and determined with the cooperation of popularly elected officials. During the last few years, the governments of the various Communist areas have become more firmly established and have increased in political strength, achievements dependent upon and made possible by the support of the populace. The political support of the people and economic self-sufficiency have made possible the maintenance and even some increase of Communist military strength. American military observers in Communist areas would be welcome and the Communists would be glad to extend full cooperation in matters of intelligence, travel, questioning of Japanese prisoners and air crew rescue work. End of Summary.
Respectfully yours,
- Latter not printed.↩