893.00/11–2444: Telegram
The Chargé in China (Atcheson) to the Secretary of State
[Received 5:08 p.m.]
1894. General Hurley informs me that Kmt–Communist conversations are proceeding with his participation in Government councils and that Chou En-lai is proceeding to Yenan to confer further with Mao Tze-tung. He states that while he does not as yet wish to predict success of the conversations, there has been some meeting of minds on aspects of essential matters such as legalization [of] Communist Party, Communist representation on National Defense Council and in Government, and equitable distribution of military supplies; the question of use of Communist troops against Japanese on southeastern front hinges in part upon Communist desire for Allied (American) commander.
Our Communist contacts have continued to take, or profess to continue, a pessimistic view of possibility of a far-reaching and fundamental settlement. Their mistrust of the Kmt is profound; the recent changes in the Government (although in some instances they accord Communist demands) have not dissipated this distrust; and while many foreign observers feel the Communists sincerely desire to assist the Government militarily against the Japs under suitable and effective safeguards, they are also conscious that the Kmt is becoming weaker while they [Communists] are not, and that continuing deterioration in the Government armies in face of Jap advances in southeast might conceivably result in the end of the Kmt regime in a perhaps not very distant future. Meanwhile, however, the door is still open and there is no question that definite progress has been made.