Marshall Mission Files, Lot 54–D270: Telegram
Lieutenant General Alvan C. Gillem, Jr., to General Marshall
461. Regarding first subject in your 83602.90 Have been in continued conference with General Chen Cheng and Gen. Yu Ta-wei relative to the Manchurian situation. This afternoon at 4 o’clock we have a committee meeting at which I hope to come to some sort of an agreement. I have an appointment with the Generalissimo just before this meeting and my discussions with him will be based on the information contained in your 83602. If it develops during the meeting that Chou is the resister, I will also attempt to see him this evening after the meeting. That will give me tomorrow to try to pull loose ends together sufficiently to take off for Manchuria. Regardless of the [Page 743] outcome, I am going to Manchuria Wed. and I intend to take both Chou En-lai and Yu Ta-wei, acting for Chen Cheng, with me unless some presently unforeseen circumstance precludes one or both of them going. Received a message this morning indicating that Byroade returned Peiping yesterday for medical treatment but is returning to Mukden in 2 or 3 days.
Regarding second [third] paragraph of 83602, I feel as you do that the sound basis is to adequately support the Generalissimo. However, I would like to point out on the political side (Smyth and Ludden concur) that it would be desirable to wait a few weeks before any official announcement of loan is made or any definite commitment is made to Chinese Government. Full implementation of PCC agreements must necessarily be a long term procedure. The first definitive step, however, must be interim reorganization of Government and adoption of constitution. It is felt that this could be accomplished within a few weeks if genuine mutual good faith is present, but until this is accomplished there can be no assurance that PCC agreements will ever be made effective. Granting good faith of Gimo with regard to PCC agreements, it is believed that his position vis-à-vis recalcitrant elements within the Kmt would be strengthened rather than weakened by a statement from you of American interest in early implementation of PCC agreements, particularly with regard to adoption of constitution by National Assembly scheduled to meet at Nanking on May 5th.
On the military side I would like to point out the possibility that the National Government is not acting entirely in good faith. The Gimo continues to support Chang Fa-kwei and his non-recognition of Communists in Kwangtung Province (which includes Hainan) although certain arrangements have already been concluded with reference to reducing the Canton area problem. The National Government has not assisted materially as it had promised in alleviating the situation northwest of Hankow. These two points have caused burning resentment on the part of General Chou who is accused by his party for failure to resolve Central and South China military problems while at same time making concessions to National Government in North China. Generalissimo has become alarmed and adamant over equipment to be given to Communists (this is old Stilwell91 fight). National Government Commissioner has been absent from Peiping over 2 weeks. Up until morning 4 April, according to official report, National Government Team representative in Manchuria have refused to go into field from Mukden and still refused until afternoon 6 April according to press.
[Page 744]In view of the political and military situation outlined above I then (Adler92 concurs) recommend that economic strings be attached to the loan to give U. S. sufficient loophole to hold up making more specific credits for specific projects under the loan (after some have been granted, of course), if at any stage after the loan has been announced it becomes evident that implementation of the PCC or military agreements are being seriously retarded.