893.00/12–2145: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received December 21—10:05 a.m.]
2200. Included in Dept’s Radio Bulletin 301, December 20, received this morning was item stating:
“An unconfirmed dispatch from Chungking reports that Chinese Communists have agreed to stop fighting and that they further agree to concessions for a permanent peace.”
As Embassy had heard of no such report, we inquired informally of Durdin, local New York Times correspondent. He said that 2 days ago Chou En-lai had lunch with Shao Li-tse;41 Chou made a proposal for unconditional cessation of hostilities pending negotiations for settlement; Shao suggested that cessation of hostilities should be accompanied by a Communist withdrawal from certain railroad lines but Chou refused saying his offer was unconditional. This seems to have been basis for news report (apparently U. P.) in question (sent Department; repeated Moscow).
Durdin also said that at press interview this morning Communists flatly denied truth of U. P. dispatch on cessation of hostilities, stating that fighting is still going on with Govt troops taking the initiative.
Durdin said that subsequently a Govt spokesman also denied truth of U. P. dispatch, stating that fighting is still going on in which Communists are taking initiative. Govt spokesman added that Communist claim of formal proposal to cease hostilities is pure propaganda as offer was made at social function and therefore could not be considered official. Spokesman said that if Communists would make such proposal formally and in writing Govt would, of course, give it due consideration.
It is respectfully suggested that at this juncture it seems particularly inadvisable that an unconfirmed report of this nature be broadcast in State Dept Radio Bulletin. Fortunately USIS41a China which uses some State Dept Bulletin material did not release item in question.