Marshall Mission Files, Lot 54–D270

Minutes of Meeting Between General Marshall and General C. P. Lee at No. 5 Ning Hai Road, Nanking, December 31, 11 a.m.

Also present: Colonel Underwood

General Lee stated that his trip to Shanghai had been delayed but that he would go there for the meetings of the minority parties. He stated that Mr. Mo Te-hui was also going and would want to talk to General Marshall upon his return to Nanking.

General Marshall asked how strong the Democratic League was at present. General Lee described it as already the largest of the minority parties and steadily growing larger. He stated it would become the most popular of the minority parties and would attract the majority of the liberals. Accordingly, it would become the real balance between the CCP and the Kuomintang.

General Lee asked for advice as to what he might do while in Shanghai to contribute to the solution of political problems. General Marshall stated that he still believed the only real hope of an immediate solution to China’s problems to be a complete coalition of the [Page 668] minority parties into a single liberal party under selfless patriotic leadership. General Lee replied that improvement in the situation depended to a large degree on the extent and manner of the rumored reorganization of the government. General Marshall replied that the type of reorganization to be obtained depended on the action of the minority parties. If these parties would join together into a single cohesive force working for the good of China, a real genuine reorganization of the government would probably follow. If the minority parties continued to operate individually, the reorganization quite possibly would be synthetic. General Marshall stated that a coalition of the minority parties would appeal to the Liberals in the government for it would provide articulate backing for their efforts. Coalition of the minority parties is inevitable; when it will come about constitutes the only question. China could well do with a few patriots among the minority parties who would place national good above private gain. General Lee stated that the National Government could contribute to the improvement of the present situation by getting rid of the CC clique. General Marshall emphasized that the Generalissimo could not force the ejection of the CC clique alone, all of which simply constituted another of the obvious arguments for a coalition of the minority parties.

General Lee said that he understood that General Chang Chun would probably replace Mr. Wang Wen Hao as Vice-President of the Executive Yuan, and that Dr. Soong would remain as Premier. He also understood that the National Government now wishes to fight it out with the CCP. General Marshall felt that the CCP is also eager to settle the issue with force and that the CCP is banking on economic collapse in China before the government can achieve total military victory.

General Lee believes that the National Government should start thorough-going reforms in the area south of the Yangtze River, where the Communist problem is negligible. He thought that perhaps the Government should place one minority party in control of each province, thereby bringing about a free and healthy competition in a democratic way among all parties. General Marshall’s only comment was that such an arrangement might not be practical.

General Lee handed General Marshall a list of his own proposals for action to be taken by the government. General Marshall observed with disappointment that a coalition of the minority parties was the last point on the list, when actually it was foremost in importance. He then expressed his real doubt that anyone on the Chinese side understands exactly how a democracy works and how an opposition party operates. He was sure that the Generalissimo did not understand these points and he also doubted that General Lee understood them.

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General Lee stated that the liberals in the government were trying to organize themselves and to eject the CC clique. General Marshall stated that the liberals could not force the CC clique out of the government on their own. General Lee wondered if it could not be done, provided Dr. T. V. Soong became the leader of the movement. General Marshall replied negatively and again emphasized his continuing belief that the only solution lay in the coalition of the minority parties into a single liberal party which would back any progressive democratic measure.