893.00/7–1548: Telegram

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

1054. It is noted that Emb in drawing three conclusions set forth Embtel 1299 July 15 apparently did not take into account Peng’s interesting observation that Sov Amb seemed to fear CCP might follow course similar to Tito. If such anxiety basis Sov Ambs apprehension, it suggests USSR may regard CCP as stronger rather than weaker as Emb concluded. It could follow from such estimate the Kremlin seeks political solution now when through mediation it may play Kmt and CCP against one another and exert influence on outcome rather than watch CCP continue gain ground and become more headstrong.

Did Peng report anything not mentioned Urtel which would support Embs conclusions rather than foregoing deductions?

Marshall