893.00/1–2347: Telegram

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

126. Some salient manifestations with third party groups.

Lo Lung-chi, spokesman for Democratic League, at press conference 21st in Shanghai remarked that Democratic League strongly opposes the proposed reorganization of Government without participation of Chinese Communist Party. This is attempt to prolong civil war and to perpetuate the national split on part of Kuomintang Party. Democratic League favors resumption of peace negotiations between major [Page 23] parties but these negotiations must not be utilized as means to launch “peace offensive” against the other side. Democratic League has no objection to which form of negotiations is followed, either the round-table conference proposed by Sun Fo32 or the all-party conference proposed by Communists. Chief thing is that both parties abide by the spirit and tradition of the successful Political Consultative Conference held a year ago. PCC resolutions must be respected and upheld by all political parties. Democratic League does not oppose amendments of some parts of the PCC resolutions in view of changed situation. That would be the exact function of the proposed renewal of negotiations, but already signed PCC resolutions cannot be scrapped. Democratic League urges establishment of an all-party coalition government but this can not be interpreted as an invitation to some parties or groups to come into the Government with exclusion of other parties and groups.

Chang Tung-sun, who has been named to succeed Chang Lan as secretary general of the Democratic League, gave me his impressions of Communist attitudes as follows:

Communists are counting on military losses to Government being so serious that within the next few months Government will be forced to seek a renewal of peace talks when Communist Party can make its own conditions. The information the Communist Party is receiving is that the surplus property being delivered from Pacific islands is proving of very little value to Government, that Government is reopening its arsenals and thus revealing its lack of military supplies. This is further evidenced by fact that some Government troops are now using Japanese arms. Communists are further counting on economic distress as weakening Government’s moral support by the people. They are also hoping that Moscow Foreign Ministers conference will be to their advantage.

Carson Chang and Wu Hsien-tze, leaders of the Social Democrats, and Tseng Chi and Tsao Hsun-sheng, leaders of Youth Party, conferred with Generalissimo concerning participation by their parties in the reorganization of the Government. Both parties publicly have indicated their reluctance to take part in coalition government but privately they seem to be going along with the Government and waiting for more opportune time to announce their decisions publicly.

Carson Chang during a talk with me indicated that he did not wish to enter the Government in any specific position since he would then have to follow Government policies but preferred to become member of Legislative Yuan where he could serve country by helping to formulate measures for enforcement of the constitution. He also [Page 24] said he wished to make a lecture tour of country, explaining the benefits of the new constitution to people.

If the Communists reject the latest offer contained in the Government’s public statement of January 20th (Embassy’s telegram 119, January 21), it is expected reorganization of Government will be pushed though there is also expressed indications that next move awaits Washington meeting between President and Secretary of State which it is assumed will result in further developments in implementation of American policy toward China.

Stuart
  1. President of the Chinese Legislative Yuan.