893.00/11–844

Memorandum by Mr. Augustus S. Chase of the Division of Chinese Affairs

Principal Differences in Central Government and “Communist” Terms

Fundamental Issue: Immediate Nation-wide Democracy:

The “Communists” put forward as their primary objective the immediate termination of one-party government and the realization of “democracy on a nation-wide scale” for the declared purposes of a united fully mobilized effort to defeat Japan, the maintenance of China’s international position and the attainment of a stable peace. The Central Government (Kuomintang) in reply points to steps it “has taken” toward “democracy” and repeats assurances that constitutional government will be instituted one year after the war. In its essence, the controversy centers on whether or not, in fulfilment of Dr. Sun Yat-sen’s program, the period of constitutional government should be introduced now to replace the period of “Political Tutelage” (Kuomintang control).

Specific Points: The principal specific points put forward by the “Communists” and the Central Government are as follows:

Communists”:

Military: “Communist” forces totaling 16 divisions to be incorporated into National Army, with proportionate allocation of funds, arms and supplies; these forces, and the other “Communist” forces (now totaling 370,000 “regulars” in addition to 2,200,000 local militia according to “Communists”), to remain in existing “Communist” [Page 673] areas and continue guerrilla warfare, under direction of Central Government.

Political: Popularly elected administrations in all “Communist” bases (including main Shensi base and “15” bases behind Japanese lines) to be recognized and continued, under Central Government direction; One-party government to be ended immediately; a national conference called to organize a coalition government recognizing and including “Communists” and all other political groups; and a policy of thorough military, political, economic and cultural reforms proclaimed by that government; Democracy to be established now throughout China, with freedom of speech, assembly and organization, individual liberties, release of political prisoners, lifting of the anti-”Communist” blockade, et cetera.

Central Government:

Military: “Communist” forces to be limited to 10 (possibly 12) divisions; incorporated in National Army under National Military Council, with proportionate allotment of funds, arms and supplies and right to “recommend” their own personnel appointments; and concentrated in area designated by Central Government (alleged by “Communists” to be small impoverished region north of Yellow River); All other existing “Communist” forces to be disbanded;

Political: Main “Communist” base in Shensi to be delimited jointly by “Communist” and Central authorities, and administered directly under Executive Yuan and subject to Central laws, with the administrative organization subject to Central Government approval, chairman of the area appointed by Central Government, other appointments by Central Government on recommendation of chairman, Central Government control of budget, and discontinuance of separate currency and tax system; Administration of all other “Communist” areas to be surrendered to Provincial Governments concerned; Constitutional government to be instituted one year after war, giving equal treatment to “Communists” and all other political groups and their right to participate in the Government; “Consideration” of abandonment of blockade upon “Communists’” compliance with other terms.