Marshall Mission Files, Lot 54–D270
Minutes of Meeting Between General Marshall and General Yu Ta-wei at No. 5 Ning Hai Road, Nanking, July 16, 1946, 10:30 a.m.
| Also present: | Colonel Caughey |
General Yu Ta Wei reported that the Communists in Kiangsu Province had attacked in four columns between Tai-hsing and Tai-hsien on the 15th, although the attack probably had been in progress since the 13th. During this same period and at night, Communist forces also attacked the outskirts of Liu-ho. General Yu said he did not know what their purposes and objectives were unless it was an attempt to wipe out crack Government troops north of the Yangtze.
General Marshall stated that he did not agree with General Yu Ta Wei. There appeared to him to be three possible reasons for this Communist activity. One would be to wipe out Government forces but he did not consider that likely since he doubted the Communists’ ability to do so. The second reason might be for retaliatory purposes, but this did not appear to him to be quite the reason. The third and most likely reason is that if the Communists instituted this activity it was to offset attacks which they feared would take place by Nationalist forces in the northern part of Kiangsu Province where Government forces had rapid communications at their disposal. In elaboration of this third reason, General Marshall told General Yu Ta Wei that Communist forces in Kiangsu Province have limited communications at their disposal and had already moved troops down toward the Yangtze River. Since these same forces could not move rapidly northward it would be sound tactics on their part to employ their forces in the south in order either to draw Nationalist forces from the north or cause the Government to concentrate additional forces in that vicinity to preclude their being used elsewhere in Kiangsu Province. In this connection General Marshall pointed out to General Yu Ta Wei that his (General Yu’s) fear of Communist intention to annihilate good Government troops would appear ill-founded in the light of the view on the part of the majority of Government officials who seem to feel that Government forces could liquidate within three to six months all Communist forces in China. General Marshall emphasized that he was merely attempting to estimate Communist intentions.
General Yu Ta Wei then stated he would like to analyze the Government’s position and pointed out that (1) The Communists violated [Page 1361] the Lo-Shan (Hankow) Agreement,23 and (2) the recent fighting in Shantung Province along the railroad was precipitated by Communist attacks in that vicinity and now that the battle is in progress General Chen Yi has refused to attend a scheduled conference for the purpose of bringing about peace. At this juncture General Marshall stated that he and General Yu Ta Wei were discussing different things entirely; that what General Marshall had in mind was an estimate of intentions, whereas General Yu Ta Wei was discussing “Justification” of the Government’s military procedure. General Yu Ta Wei stated that he would get additional facts and figures concerning the Kiangsu fighting and present them as soon as possible.
General Marshall stated most confidentially that he had seen Dr. Soong the day before, who told him that his original estimate that economically China could stand six months’ war was erroneous. Dr. Soong said that he had recently completed a survey of all aspects of the financial and economic structure only to find a pronounced weakness. In elaboration of this condition, General Marshall pointed out to General Yu, that as early as December 1945, China was faced with an economic situation the like of which no other nation ever survived. The one hope rested on her certain gold reserves. At that time Dr. Soong had desired U. S. payment in gold for the China services to the armed forces during the war, and that at the same time he wanted to borrow additional money from the United States. This could not be supported politically in the United States and accordingly the so-called “offset principle” had been established, a procedure which immediately permitted deliveries of surplus property, consequently, a means of financial improvement for China.
General Yu Ta Wei asked General Marshall how he felt with respect to prospects for peace. General Marshall stated that if the Generalissimo continued his present attitude regarding negotiations, then a general civil war appeared inevitable. General Marshall pointed out that the Generalissimo believed that the situation would not deteriorate and might develop favorably for the Government during a lull in negotiations. General Marshall felt that the delay most likely would result in civil war. General Marshall said that agreements for the complete termination of hostilities have been prepared and agreed to since the 19th of June, all waiting for clearance and approval of the civil government question. But the Generalissimo continues to delay on this matter, a procedure which might well permit the situation to blow up. General Marshall stated he felt that the Generalissimo’s military commanders are leading him into a situation that will develop beyond control and that when this condition [Page 1362] materializes these same military commanders will be calling for assistance which will be unobtainable.