893.00/2–2547: Telegram

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

372. Following is substance of information transmitted by Ludden74 as result Ambassador’s and his talks with third party leaders, principally Chang Lan, Lo Lung-chi and Carson Chang, February 21 and 22 at Shanghai:

Democratic League representatives stated China’s situation is deteriorating with great rapidity, pointed out that this is disadvantageous to US because the people to whom General Marshall’s statement75 was directed will inevitably be driven as end result of situation into the Communist camp. All persons interviewed pointed out that there can be no real solution present problems until there is cessation of civil war.

Chang Lan desired that three points be brought to attention of US Government: (1) desirability American-Soviet-British mediation to replace American mediatory efforts; (2) that a reorganization of the Government without taking into consideration basic PCC agreements was doomed to failure; (3) that Communist Party at present time is considering calling a “national assembly” in its own “liberated areas”.

Impression was received that Democratic Leaguers and Carson Chang would be resentful foreign pressure put on them to join Government and that they believed no solution of present problem possible except by Chinese among Chinese. Chang Lan in particular took the line that American assistance to Government was responsible more than any single matter for continuation of civil war and Carson Chang left same impression.

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Carson Chang indicated he would not join Government under present conditions, that any third party participation in circumstances would make no difference in overall picture, and he maintained that he could be more effective in influencing change in China by remaining outside of Government than being a member thereof. At same time Chang said flatly that basic problem was the attitude of the Generalissimo and that stumbling block to genuine reorganization of Government was Chiang himself, whose entire background is such that he cannot conceive any success resulting from democratic processes. Chang maintained that solution to immediate problems was stabilization of monetary situation and reduction in military expenditures. He appeared to feel that any reorganization of Government at this time would be for sole purpose of influencing American opinion.

Lo Lung-chi’s views: Some sort of all-party conference should be convened, committed in first place to national unity. Question of local administrations would be discussed and agreed upon; plans for a “revision” of present constitution would be laid down (this to be face-saving device for both Nationalist and Communist and to allow a later national assembly to confirm such changes); an implementation of the February military reorganization plan would be agreed upon (which would dispose of second Communist demand for return to January 13 troop dispositions, since all troops would then be under a single Government). Lo’s basic point is that there can be no solution of situation unless agreement reached with Communists. He sees no possibility of Nanking defeating Communists, without US support, and his greatest fear is that American policy will drift toward material support of Government if a façade of reorganization is achieved. As to reorganization, Lo believes Youth Party unwilling to joint Government unless there is immediate revamping of State Council of [or?] Executive Yuan. On the other hand, some Social Democrats favor entering Legislative Yuan, Control Yuan, People’s Political Council, and Association of Promotion of Constitutional Government, thus cooperating in state affairs without being compromised by participation in policy decisions or actual administration. However, both groups apparently [apparent omission] off to await developments in economic crisis, with which they do not want to be identified. Youth Party is probably trying to drive a hard bargain with the Government in its extremity, while Government meanwhile unwilling to meet YP demand until agreement both parties assured since reorganization along party lines involving single third party would have no significance.

Stuart
  1. Raymond P. Ludden, First Secretary of Embassy in China.
  2. January 7 at Nanking; for text, see telegram No. 1910, January 5, Foreign Relations, 1946, vol. x, p. 682.