893.00/10–3147

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

No. 1079

The Ambassador has the honor to enclose a copy of a memorandum of conversation between two Embassy officers and Dr. Lo Lung-chi of the Democratic League on October 28, 1947. The memorandum expresses Dr. Lo’s concern over the National Government directive outlawing the Democratic League and a reiteration of his over-all plan for a coalition government as the only feasible solution to China’s immediate problems. In this general connection the Department’s attention is directed to the Embassy’s Secret Despatches No. 823 dated July 11 [June 20], 1947 and No. 972 [872] dated July 11, 1947,34 both entitled “Transmission of Memorandum of Conversation Between Dr. Lo Lung-chi and an Officer of the Embassy”.

It will be noted in the enclosure that Dr. Lo, through the Ambassador, proposed to find out from the Government the exact status of the League and its members; i. e. whether only the League is outlawed or whether the members of the League are also to be considered as Communists. The Embassy has been informed that the present order does not call for the arrest or detention of the League members, but only for the cessation of activities of the Democratic League as a political entity.

[Enclosure]

Memorandum of Conversation, by the Assistant Attaché of the Embassy in China (Anderson)

Participants: Dr. Lo Lung-chi, Democratic League
John F. Melby, Second Secretary of Embassy
Robert Anderson, Assistant Attaché

Dr. Lo Lung-chi came to lunch on October 28, 1947, on which date the National Government outlawed the Democratic League. His house was under surveillance, all telephone wires had been cut, and [Page 353] he was released from house-arrest shortly after 10:00 A.M. The purpose of his visit to the Embassy was to request the help of the Ambassador in making contact with high government officials to sound out what was to be done with those members of the League who might be arrested. Dr. Lo tried several times, without success, to contact Shao Li-tze and Chang Li-shen, Minister of the Interior, from whose office the order had originated.

Dr. Lo did not wish to return to his residence as he would then lose all contact with the outside. He believed that he would be in danger if he did leave the Embassy, and hence was most anxious for the Ambassador’s intervention. When it was suggested that he would not be harmed because of his wide foreign connections, particularly with Americans, he stated that Chinese politics were so unscrupulous and unlike Western ideas that the military would not hesitate to take drastic action. (For a man who was in such seemingly imminent danger, Dr. Lo appeared most calm and spoke in a rather academic, impersonal manner).

Dr. Lo went on to state that he could not understand why the Government had taken such action in view of the possibility of a United States loan when it was obvious that his organization could have nothing to do with the present civil war as it had no army and was composed entirely of students, professors, merchants, and the like. In this connection he stated: “What could the League do militarily even if it wanted to?”

Dr. Lo repeated several times that he wished to find out from the Government whether only the League was outlawed as a political entity or whether the members of the League were also to be considered as Communists. In addition, he made it quite clear that it was the League’s desire to have any specific accusations made public in the form of open, non-military trials, thereby giving the League an opportunity to defend itself. When asked if the order had most probably come with the Generalissimo’s approval, Dr. Lo replied that any order with such far-reaching effects would have had to come from the Generalissimo and, further, that it was probably not a mere coincidence that the Generalissimo had departed from Nanking two days prior to the order.

Dr. Lo then turned to the question of the much-discussed loan to China, and stated that he did not favor any loan; but if there had to be one, it should by all means have foreign supervision to prevent corruption and graft similar to that seen in the UNRRA–CNRRA China program. He then expressed the opinion that in event of a Nationalist victory, China could expect nothing but a fascist state headed by “this Generalissimo”—a situation which in the long run [Page 354] would be disadvantageous to the United States inasmuch as all other political groups in China, as well as the Communists, would have been eliminated.

Dr. Lo next launched into his rather nebulous idea of a coalition government which would involve the Third Party elements in China reaching an understanding with the Communists and with influential members of the present government. He felt that certain military figures not personally allied to the Generalissimo would join such a coalition thereby giving his group its most essential weapon to assume power, namely, an army. (When asked to give specific names of the prominent military, Lo was rather indefinite.)

Biographic Notes Derived from Dr. Lo’s Conversation:

1)
Dr. Lo has not been in contact with Harold Laski35 except for the one exchange of correspondence when he was in Kunming during the war.
2)
Dr. Lo’s last trip to the United States was in 1927. During the war, he tried several times to obtain a Chinese passport but was refused by the government.
R[obert] A[nderson]
  1. Latter not printed.
  2. British Socialist author.