893.00/12–3146: Telegram

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

2212. Summary [of] remarks by Minister of Information Peng Hsueh Pei at weekly press conference December 30th:

Chinese Ministries for Information, Organization and Overseas [Page 667] Chinese Affairs will continue as Kmt Party units and not become official Government agencies with adoption [of] new constitution.

Queried for clarification his own position, Peng replied, “I consider myself as spokesman of National Govt today but I don’t know what I will be next week”.

Expenses of these three Ministries hereafter will be paid from Kmt funds entirely and not from Govt Treasury. Old provisional constitution still is valid until new constitution becomes effective next Christmas Day so that party officials will continue to exercise certain official functions until that time.

Govt already has asked minority parties which were represented in National Assembly to share in reorganized Govt. Similar invitations will be extended to Communist Party and Democratic League “when and if they express signs of willingness to participate”.

Young China Party and Social Democrats now holding meetings to decide on participation with Kmt in broadened National Govt. Not asked yet to submit their nominations for offices.

Queried about press reports that Democratic League officials had been invited to go to Yenan for purpose of asking Communists to resume negotiations, Peng replied, “I have not heard of that”.

Denied rumors of pending adjustment of official rate of exchange, declaring they were “absolutely unfounded”.

Stuart