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The Ambassador in China ( Stuart ) to the Secretary of State

1671. In October 15 interview with United Press Dr. Sun Fo said “if Communists are wise they should accept new Government offer” and added that since Communists have lost strategic advantage in war [Page 377] the only thing now for Third Party leaders and Communists to do is come to Nanking, participate in Three and Five Man Committees, PCC steering, and draft constitution reviewing committees to which Government has agreed. He added that there is still time to work out agreement and said that the most urgent problem today is cessation of hostilities and that once this is accomplished all other questions will automatically be solved. He believed, however, that in the long run most important problem is draft constitution.

Dr. Sun said that Government has to all intents and purposes [apparent omission] of immediate cease fire which Government cannot do as yet until Communists agree to halt fighting themselves and until Chou En Lai comes to Nanking to work out agreement in Three Man Committee. Dr. Sun added he did not believe Communist demand for restoration of January 13 status quo militarily in China is acceptable but that the Government is willing to go at least half way in meeting desires of minority parties once they return to Nanking. “We cannot undo what has been done.” He also said that if minority parties refuse this offer then “most probably” the Government will go ahead with its reorganization plan and national assembly.

Stuart