Marshall Mission Files, Lot 54–D270

Memorandum by Colonel J. Hart Caughey to General Marshall

Dr. Stuart just called (telephone) to give you the background of recent events for your use in connection with General Chou’s meeting this morning. Developments are proceeding unexpectedly well. He already reported the results of the meeting yesterday afternoon at Sun Fo’s residence (wherein Chou requested postponement of National Assembly). There was a meeting with the Generalissimo last night and the Generalissimo’s reaction was favorable in that he showed readiness to participate in any way possible to arrive at a peaceful solution. This afternoon there is to be an informal meeting of the Steering Committee of the PCC. Dr. Stuart reported that the Steering Committee is practically agreed on the composition of the State Council; they appear to have agreed that the reorganization of the Executive Yuan should be planned for before the National Assembly but not announced until after the National Assembly. Dr. Stuart believes that the Third Party Group is going to plead with himself and you to approach the Generalissimo with the idea of requesting temporary postponement of the National Assembly.

Dr. Stuart added that General Chou presently remains in a bad frame of mind possibly due to recent military losses and that he should be coaxed into a conciliatory frame of mind.