893.00/3–747: Telegram

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

480. Following is 39, March 6, from Taipei:

“Quiet but expectant atmosphere prevails Taipei with continued meetings committee for settlement February 28 incident. Following is summary translation of draft of fundamental political reforms formulated by committee late yesterday:

Government will be responsible for incident.
Secretary General and Commissioners Civil Affairs, Finance, Industry and Mining, Agriculture and Forestry, Education and Police—more than half of top executive posts Taiwan Government—shall be Formosans.
All public enterprises shall be operated under Formosan direction.
Selection of magistrates and mayors by general election shall be instituted immediately.
Monopoly system shall be abolished except for tobacco, cigarettes, liquor and beverages.
Trading Bureau and Information Commission shall be abolished with commercial policy being handled by Industrial and Commercial Department presumably to be newly created.
People shall have freedom speech, publication and assembly.
People’s lives, property shall be protected.

Insistent but unconfirmed reports indicate that Formosans either in ascendance or control in most important centers on island outside Taipei and Keelung, with Formosans in control at Topen, Taichu, Kagi and on east coast while street fighting in progress at Shinchiku, Tainan and Takao. At Taipei police and public utility functions in hands of Formosans and operating without apparent change.

Whether military reinforcements will be brought from mainland remains paramount question in public mind. Food situation eased with release Government rice stocks.”

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Blake reports in his 40, March 6, that a radio broadcast at 4 p.m. in behalf settlement committee announced that Governor General had accepted in principle all 8 demands mentioned in above message and had requested committee to furnish further details.