740.0011 Pacific War/3809: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received April 2—12:26 p.m.]
582. By orders issued in name of Stilwell by Hearn late afternoon March 31, U. S. Army Headquarters for China, India and Burma are transferred to New Delhi effective April 1 and Chungking becomes Headquarters of forward echelon only. I was informed of this informally from Headquarters this morning, it being stated that the move is purely administrative and has been in contemplation for some months. The proposal has never been mentioned to the Embassy. I saw Stilwell on afternoon of March 30 before his departure on 31st and he made no mention of any such intention. So far as we know, Generalissimo was not consulted or informed and the Ministers of the Government were unaware of proposed move.
Apparently the Army did not give the slightest thought to any possibility that the move might have any political or other repercussions.
I learned that as is inevitable in China the news had already leaked out yesterday afternoon to private banking circles. Amongst first reactions were the following: (1) our lines of communication is [through?] Assam are broken hence we are withdrawing without saying anything about it; (2) General Chennault18 has become convinced that Chinese armies cannot protect his forward air bases [Page 49] hence there is no point in our trying to use China as a base; (3) financial negotiations with us have broken down and our Government has decided we cannot afford to fight from China bases; (4) Japan will seize upon this move for propaganda purposes to suggest that America is abandoning China. There is speculation whether the move was made with knowledge and consent of our President. It is asked how Stilwell can serve as Chief of Staff to Generalissimo if his Headquarters are in India.
As the news spreads, as of course it will, we may expect repercussions on money market and on prices as well as political speculation. I have so warned Headquarters, adding that matter is being reported by urgent telegram to Washington.
Developments will be reported.
- Maj. Gen. Claire L. Chennault, Commanding General, U. S. 14th Air Force in China.↩