121.893/8–2647: Telegram
The Consul General at Shanghai (Davis) to the Secretary of State
[Received August 26—9:32 a.m.]
2061. Initial local reaction to Wedemeyer’s statement August 24 was one of surprise. While there is some indication of hurt pride, there seems to be general recognition of sincerity of statement and justice of criticism. Many educated Chinese, including some Government officials, consider it fair and timely. Influential business groups who have been bitterly critical of Government and liberals in general, are outspoken in praise of statement.
Ta Kung Pao in edition of August 25 praises soundness of observation that Chinese people are unanimous in desire for peace, adding that what is characterized as defeatism should be understood as disgust over existing conditions and therefore not purely negative in nature but indicative of need for radical reforms.
It is too soon to determine views of Kuomintang circles here but first reaction seems to have been of stunned surprise. Some have [Page 762] tended to stress the criticism of Communists and advice that they abandon the policy of armed rebellion if they are truly patriotic, while others are frankly critical, implying that certain Chinese circles had not been adequately consulted, that situation in China should not be judged by American standards, and that in pressing China to make reforms, due regard should be made for her sovereignty and national dignity.
It is understood some persons associated with Political Science group feel stress laid on corruption and inefficiency may make it difficult for some of the elements in the Government, who are actively endeavoring to effect reforms since those opposed to their program may now accuse them of accepting dictation from abroad. While statement came as surprise to general public, Chinese in close touch with Nanking were able to anticipate its content from statements which had been made before the State Council on August 22. Some disappointment has been expressed in Government and business circles over lack of mention of possible American aid, a subject which has been uppermost in Chinese minds for some time past. Some inclined to be optimistic, take statement as evidence that aid will still be forthcoming while others take criticism as indicative that prospect of financial aid is remote.
Exchange and stock markets showed slight unfavorable reaction which may be followed by more severe break if the statement comes to be interpreted as indication that there will be no early material aid. It has been general feeling for some time that without such aid it would be difficult, if not impossible, to avoid economic collapse with far-reaching political effects.
Reaction of American community has been very favorable (re-mytel 2048, August 25, Nanking 1776 [1476]13).
Sent Nanking 1484, repeated Dept. 2061.
- Not printed.↩