Marshall Mission Files, Lot 54–D270

Notes on Meeting Between General Marshall, Mr. Carsun Chang, Dr. Lo Lung-chi, and Mr. Yeh Tu-yi at No. 5 Ning Hai Road, Nanking, November 3, 1946, 3:30 p.m.

Also present: Colonel Caughey
Captain Soong

Mr. Chang reported to General Marshall that he had seen the Generalissimo yesterday afternoon. He had presented to the Generalissimo the idea of an informal meeting among the Kuomintang, the [Page 467] Communist Party and the Third Party. The Generalissimo seemed to have accepted the idea. Mr. Chang also saw General Chou En-lai last night and found General Chou was receptive to this idea also. He further reported that Dr. Sun Fo is leaving for Shanghai tonight and Mr. Wu Te-chen will be acting as the Government representative. Mr. Chang then reported that a general meeting of the representatives of Kuomintang, the Communist Party and the Third Party would be held Monday, and that an agenda of outstanding issues to be discussed by the various committees would be drawn up. He then asked General Marshall for comments.

General Marshall commented that he saw no point in a meeting of the Committee of Three at the present time because this committee could only deal with military issues. General Marshall said that there could not be any profitable discussion on military dispositions unless fighting be first stopped. The question today is how to achieve the cessation of hostilities through political settlement. Then, General Marshall suggested that the Third Party concentrate its effort in settling the outstanding political issue between the Kuomintang and the Communist Party, i. e., the question when and to whom the Communists are to submit names of delegates for the National Assembly. (8th of the 8–point proposal).

Dr. Lo then said that there is one military problem to be discussed by the Committee of Three, that is, the Generalissimo’s condition that the Government would now concede to settlement of the local government in Manchuria by the reorganized State Council. Dr. Lo continued by saying that the Government has also conceded not to take over cities and hsiens along the main trunk line of the Changchun railroad except those already in Government possession.

General Marshall concurred that the military situation in Manchuria should be settled by the Committee of Three. However, he stated that at the present time the dominant issue is how to settle the political differences between the two contending parties. He mentioned that there might be a possibility of appointing certain members of the Communist and Third Parties to the posts of Ministers without portfolio in the Executive Yuan as an initial step to the eventual reorganization. General Marshall then asked who in the Communist Party would be qualified for such posts.

Dr. Lo Lung-chi said the Communist Party had previously indicated that General Chou En-lai, Mr. Wang Jo-fei (now deceased), Mr. Tung Pi-wu and Mr. Lin Chu-hai would be the persons to participate in the Executive Yuan.

General Marshall replied that he thought it might be a good idea to consider General Chou En-lai for Minister of Communications. If this were done, the problems of rail destruction (principally a Communist [Page 468] occupation), of rail police and of communication censorship would automatically be eliminated. However, he asked Mr. Chang and Dr. Lo to hold this in confidence as it was a mere idea, no more.

Mr. Chang stated that there are three things the Government must settle before the reorganization of the Executive Yuan takes place:

First, a uniform civil service system must be established so that it will provide a standard of employment for all Ministries;

Second, a budgetary system must be set up so that each Ministry would confine itself within the appropriation allocated under such budgetary system;

Third, a fundamental policy for each Ministry must be established.

General Marshall then said this is a matter of procedure but the main point remaining is how to get the various parties to accept the 8th item of the 8–point proposal of the Generalissimo as the principal basis for discussion. The object is to get the members of the various parties to sit down and hold discussions.