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Memorandum by the Second Secretary of Embassy in China (Davies)

From a number of sources I am informed that Dr. Sun Fo is beginning to play a more active role in Chinese domestic politics. How effective Dr. Sun’s activities will prove to be remains to be seen.

Dr. Sun is said to believe that the Generalissimo now recognizes that time is on the side of the Chinese Communists and that it is advisable to make a serious effort to come to an agreement with the Communists. Feeling that the situation is now more propitious for a settlement, Dr. Sun is now working on a formula which he and a small group close to him hope to present to the Generalissimo.

Dr. Sun’s formula is based on the rather academic principle of tutelage by several parties rather than one party. I understand that [Page 752] he believes that the Generalissimo’s objections to the institution of constitutionalism are insuperable, that China must continue until after the war in the stage of tutelage. So as to get around this objection, he would make the Supreme National Defense Council, now moribund, the highest organ of Government, representative of all parties and so by one stroke introduce multi-party tutelage and a coalition Government.

It is stated that Dr. Sun discussed this proposal on the evening of December 22 with Marshal Feng Yu-hsiang, President Yu Yu-jen and Mr. Shao Li-tze, all of whom are said to be sympathetic to the suggestion. Others who are mentioned as being possibly favorable to the proposal are Liang Han-chao, Ma Chao-chun, Wen Yuan-ning, Wang K’un-lun, Wu Shang-ying, Teng Chia-yen and Lu Chung-lin. All of these men are reported to be more or less followers or collaborators of Dr. Sun. It is not one of the more powerful factions in the Government but does stand out as a moderate opposition group within the Kuomintang and Government.

John Davies