893.00/7–2048: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received July 20—9:10 a. m.]
1319. Minister-Counselor who was in Peiping when our 1264, 1286 and 1293 despatched found nothing to indicate and connection between Li Chi-shen and Vice President Li Tsung-jen. From the Vice President, as he had previously from T. V. Soong and other ranking Chinese of whom he had inquired, Minister-Counselor found only derision of Marshal Li’s pretensions and complete disbelief [in his ability lead any effective revolt]7 against Generalissimo.
In respect of possibility Fu Tso-yi might become disaffected, Vice President went to great lengths to explain reasons why such action impossible. Fu was too dependent on Nanking for too many things he said ever to seek to go it alone. World conditions were no longer such that war lord could go to independent merchants to satisfy his [Page 369] military needs. Also no one could set up a separate regime without money. Time was required to print money and money was needed to pay for it. We could be sure he said of Fu’s continuing loyalty to Nanking.
Minister-Counselor was convinced that Chou En-lai was not in Peiping (our 1281, July 138) but that there is possibility subordinate of Chou conferred with subordinate of Fu on possibility cessation fighting and that Fu and Vice President were shocked at extent of Communist demands. We say this as Vice President was almost too emphatic in protestations of loyalty to Nanking and reasons why other courses were impossible.
There is, nevertheless, in North China a feeling that Nanking has thrown that region to the wolves and anything we can do to disabuse the northern leaders and to persuade Nanking to show greater interest should be helpful.