123 Stuart, J. Leighton
The Ambassador in China ( Stuart ) to the Secretary of State
[Received March 17.]
Sir: I have the honor to report that I returned yesterday from a trip to Canton and Hong Kong occupying about a week. This had been preceded by a stay of two or three days in Shanghai primarily to deliver an address on Washington’s Birthday. As the large majority of those present were Chinese I took the opportunity to emphasize not only the traditional friendship between our two countries but also those elements in Washington’s character and career which had a special relevance for Chinese patriots at this critical period in their national life.
Messrs. Ludden and Connors2 accompanied me to the South and were very helpful throughout. In Canton I had two lengthy and largely attended press interviews, met with the American community, had several discussions with Marshal Chang Fa-kuei3 and other Chinese officials, made a number of speeches and attended a series of social functions. I addressed over 8,000 students in the Sun Yat-sen Memorial Hall. It was encouraging to note that one can now use Mandarin on such occasions and be quite well understood. In Hong Kong we were the guests of the Governor, Sir Mark Young. The days spent there were not quite as strenuous but followed much the same pattern. We had intended to make a brief trip to Hainan, primarily to visit the fifteen Americans resident there, but bad weather yesterday and the important political developments here combined to cause us to abandon that plan.
The control of South China under Marshal Chang Fa-kuei is apparently efficient and with the intention of severely suppressing all subversive activity. Intellectuals complain of the lack of any real freedom of speech or publication. The higher officials seem reasonably honest but there is wide-spread graft. Smuggling has been rampant but is becoming somewhat checked. Economic conditions are bad in the cities but are improving in the country. There are almost [Page 55] 300,000 people (and their dependents) unemployed out of a population of roughly one and a quarter million. Industrial recovery is hampered chiefly by exchange rates and import restrictions. There is urgent need of machinery and raw materials. We visited a textile plant seriously damaged by bombing but were impressed with the efforts to utilize what equipment there was. In this and other factories visited there was no lack of technically qualified executives and much patient determination despite the handicaps. Agriculture in Kwangtung is capable of great improvement under scientific direction. There were persistent rumors of an independence movement in South China, but I should give them no credence unless indeed there should be a collapse of the Central Government.
The rendition of Hong Kong and the Leased Territory is evidently an acute issue. Two important British officials in the Colony questioned me on the matter. I ventured the suggestion that Great Britain might, when conditions in China become more stable, take the initiative by graciously and generously announcing her intention to return the whole region to China by a given date and proposing a procedure meanwhile for gradual rendition. The Governor would like to develop two model municipal governments as a contribution to Chinese progress in which England has been peculiarly successful. He thought this would require at least thirty years.
On my arrival here yesterday afternoon I was asked to call on Dr. T. V. Soong, to stay on for dinner, and to see President Chiang Kai-shew later that evening. Dr. Soong talked freely of the reasons for his resignation. The “C-C” and the “Political Science” cliques had united in the effort to get rid of him and he felt that he could accomplish little under these conditions. He has steadily opposed the former of these and attributes the motives of the latter to the desire for power. He seemed singularly cheerful, feels no resentment and will continue to help President Chiang unofficially as wanted. There is no basis whatever for the rumors of estrangement between these two men. In fact, I have never known them to be on better terms than these past few months. President Chiang is acting temporarly as Premier but it is expected that the State Council will elect Governor Chang Ch’un to this position.
President Chiang is carrying a terrific burden of responsibility. Although he was as calm and confident as usual yet he seemed more tired than I remember to have seen him before. He questioned me anxiously about news from yourself and about the outcome of the UNRBA3a cotton and wheat proposition. I explained that at most this would represent a value of about fifty million dollars and that no final decision had been reported. He thinks that within a week it [Page 56] will be possible to announce the complete plans for government reorganization. He feels that the military situation alike around Chang Chun and in Shantung is well in hand and that the Tientsin–Pukow Railway zone will be cleared of Communist troops before the end of next month. He allows four to six months for the reconditioning of the line.
Both President Chiang and Dr. Soong made it abundantly clear how hopefully they are awaiting American financial aid. The former wanted me to telegraph the essence of the preceding paragraph so as to reach you before your departure for Moscow. I question, however, the advantage of this in view of the inability as yet to report the details of reorganization or other features not previously transmitted to you.
Today I had four of the local Communist Party delegation for lunch with Messrs. Butterworth and Connors present. They were quite explicit in expressing their desire for a reopening of the peace talks and for American mediation. I assured them once more of my readiness to do anything in my power and within my instructions whenever the suitable opportunity presented itself, as well as of the hope which I had never abandoned that these talks would some day be resumed fruitfully. I sent greetings to Messrs. Mao Tse-tung,4 Chou En-lai5 and others known to me at Yenan. The Nanking and Shanghai Communists are acquiescing—but with obvious reluctance—in the plans for their removal to Yenan.
Respectfully yours,
- Raymond P. Ludden, First Secretary of Embassy in China, and W. Bradley Connors, Public Affairs Officer in the Shanghai Consulate General, on detail to the Embassy.↩
- Director of Generalissimo Chang Kai-shek’s military headquarters at Canton.↩
- United Nations Relief and Rehabilitation Administration.↩
- Chairman of the Central Committee of the Chinese Communist Party.↩
- Head of the Chinese Communist delegation during the negotiations of 1946 with General Marshall and the Chinese Government.↩