Marshall Mission Files, Lot 54–D270: Telegram

Colonel J. Hart Caughey to General Marshall, at Kuling

1337. When asked whether or not Communists were ready to nominate State Council members, General Chou evaded by saying original scheme for negotiation was first to cause a cessation of hostilities and [Page 55] second to establish a reorganized government with representation by other parties in the government. That scheme was now changed to where both would be discussed simultaneously with you handling the military considerations and Dr. Stuart’s small group handling the political aspects. This new scheme was acceptable to Chou as long as the political reorganization included participation of other parties in government.

To try to draw Chou out on the “if only a matter of form” mentioned by you I asked how he visualized the operation of Dr. Stuart’s small group; on what basis would it proceed toward formation of the State Council. Chou replied that he had carefully gone over all that with Dr. Stuart. He added that three political problems relating to the government itself would have to be discussed: 1, elaboration of first PCC resolution concerning seats on State Council among various parties; 2, redefinition of veto powers as laid down in PCC, and 3, reorganization of Executive Yuan to include other parties. Aside from this is the civil administration problem which originally according to PCC was to have been brought up after reorganization but which he was now willing to take up with Dr. Stuart’s small group. These matters could be detailed and agreed on by the small group, other parties could then be brought in and the whole thing then discussed by the Steering Committee. He did not mention confirmation of this small group so I did not broach the subject.

In order to get a definite answer to your query I then asked Chou when he would be ready to nominate State Councilors. He said when two conditions are met: 1, when PCC resolutions are implemented and 2, when cease fire arrangements are implemented. He added that since the Government would be fearful of proceeding with government reorganization without a more practical understanding that from his point of view these conditions could be modified to: 1, when terms of cease firing agreements have been arranged and 2, when Dr. Stuart’s small group has worked out a basis of government reorganization.

I ended the meeting by asking General Chou to come over to see the “Battle of Okinawa” this evening.