893.00/12–1246: Telegram

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

2094. Nanking Communist spokesman December 10 told press there was no hope for a compromise settlement of China’s problems and that Kuomintang and Communists would fight on “until a change in the international situation and weakening of the Kuomintang Party necessitates a fresh approach”.

He was very pessimistic over possibility that a visit by a Government delegate to Yenan would result in new peace talks. He said that Chou En-lai’s two conditions for reopening some discussions were “flat and final”.

Spokesman said that a change in military situation would be possible only when America halted all help to the Kmt and when this country as a result of military expenditures of men and materials faced an economic crisis.

Stuart