The Ambassador in China (Stuart) to the Secretary of State
[Received March 6—4:29 a.m.]
451. Following is Taipei’s 34, March 4, 10 a.m.:
“In summary of present situation Government violated truce terms agreed upon with people’s representatives to effect peaceful settlement of crisis. Such settlement was generally believed possible upon conditions accepted by Government which included gradual withdrawal of armed patrols firing wantonly in streets, release of all persons seized after February 27, slayings of Formosans by Government monopoly agents, resumption of rail traffic under chief of staff, guarantee that further troops will not enter city, cancellation of martial law at midnight March 1 and payment various indemnities. Formosans in turn agreed resume normal activities pending March 10 consideration people’s demands for reform in Government.
Formosans, so far unarmed, have resorted only to clubs and fists in their savage attacks on mainlanders. Government appears to have temporized by promises while maneuvering troops toward city and increased roving irresponsible patrols. There is indication Government is unable exercise firm control over army forces. Mainlanders were reported evacuating city provided with small arms.
Formosans apparently fundamentally desire peaceful settlement but as result Government’s action now fear repetition alleged Fukien massacres occurring under General Chen’s rule there and believe if Government augments forces hereafter full resistance by any means will be only salvation. They are improvising defenses and arms and are reported successfully to have opposed troops in pitched battle in Chureki and Toen areas. Government concession early March 4 easing situation revokes martial law and withdraws patrols, believed forced through failure to move troops nearer Taipei. Populace believes Government now attempting secure further military support from headquarters mainland and attributes present partial fulfillment truce terms to public announcement of Formosa’s representation to Consul March 3.”