893.00/2–746: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received February 7—11:27 a.m.]
245. Resolutions accepted locally as first important step toward national unity and lasting internal peace. (Reference Embtel 201, [Page 153] February 112 resolutions adopted by People’s Consultative Conference.) It may be assumed that this feeling is general throughout country although national press reaction delayed by New Year holidays. Resolutions will be submitted to Kuomintang Central Executive Committee at Chungking on March 1 and to Communist Committee at Yenan about same time. Delay attributed to transportation difficulties of members proceeding to meetings from distant points. Approval of resolutions conceded as matter of form because of prior public commitments by Gimo13 and top leaders both major parties. Anticipated that Govt reorganization will commence immediately following formal approval. Constitutional Committee may convene at earlier date.
Mutual distrust between Kuomintang and Communists cannot be ignored as a critical factor in future developments. General optimism is tempered by scepticism with regard to purpose of both sides faithfully to carry out commitments. However, prolongation of peace under present truce agreement will make future open break by either side increasingly difficult.
In the immediate future an intensification of political maneuvering and propaganda may be anticipated with each side attempting to infiltrate the areas of the other. In this the Comnmnists, with better techniques and a more dynamic program, may be expected to excel, especially in major urban centers where previous Communist political activity has been rigidly limited.
Recent minor disturbances at political rallies here and some police interference with minor party delegates to PCC alleged in certain JSB [non?]-party quarters to indicate possibility that reactionary Kuomintang elements may get out of control as agreed measures to limit the governmental power of the Kuomintang are put into effect. There is some latent resentment at outside interference. Aside from disgruntled Rightist elements within the party, even some liberal Kuomintang members, although pleased by cessation of hostilities and basic agreement on major issues, are reported to believe that United States has forced government into agreement which may lead to eventual Communist domination of China.
Military reorganization, including demobilization, ultimate merger of all forces considered most pressing problem and probably most difficult one. At recent press conference Chou En-lai very noncommittal on question of ultimate complete merger all armies.