894A.00/3–1247: Telegram

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

527. According to press reports, the Generalissimo at weekly memorial service March 10 discussed situation in Taiwan. He declared his confidence that order would shortly be restored since the Government has despatched regular troops to take up garrison duty there. He also said Government has sent a high official to assist Governor Chen Yi in reaching a settlement. He accused Communists of instigating [Page 440] rebellion and added that settlement has been delayed since Taiwanese committee for the handling of the February 28 incident has made demands beyond the scope of the Provincial Government to grant and even beyond competence of the Central Government since many of them are unconstitutional.

Coincidentally, Governor Chen Yi announced dissolution of the committee for the handling of the February 28 incident on the grounds that the committee is contributing to public disorder.

Stuart