893.00/11–2348: Telegram
The Consul General at Taipei (Krentz) to the Secretary of State
[Received November 23—1:01 a. m.]
87. [For] Director FE.46 Deptel 59.47 My 85.48 In exceptional circumstances this not sent Embassy [and] must rely Department inform it such way protect sources.
Wei49 made extraordinary proposal or feeler, said of course this must not get Nanking and leaving me free make no answer, said perhaps I could convey to you. Apropos autonomy, said I have resources including metal put Taiwan hard currency basis, revive foreign trade, invite US business participate. Would issue low face value paper yen backed hard metal with silver token coins, said I’ve got resources but initially must have psychological backing such as say 10 million US silver loan public or private. I can repay at once tea, sugar, pineapple, etc., low world market prices, I can end Government controls, can control Taiwan’s NEC50 enterprises, can establish free economy indefinitely maintain staples here. For good China itself Taiwan must not go down and Generalissimo reconciled this view, if I can show him backing he will make full gesture to save island. Time however is short, if war news correct only few weeks left to Generalissimo.
Obvious if Wei can do (and think possible) what he says, what he wants is not money but public direct US loan deal for psychological purposes.
[One paragraph of a personal nature is omitted.]
I suspect Wei feels we will not recognize a remnant regime and also not recognize Communist regime, seems prepared make bids, accept terms anything avoid next suggested alternative.
I feel presence Generalissimo or any substantial part his Government here cannot but endanger peace, security, consequences reaching far future, I feel this should be made clear. If this true I convinced it is; it would not my opinion be inconsistent traditional US policy [Page 602] integrity China instruct SCAP51 as custodian Japanese empire take over prevent threat to peace, hold in trust future legitimate government true real intent Cairo declaration.52
Our military would probably not want a civilian Chinese local government such circumstances but I believe we might combat inevitable USSR line by keeping present predominantly civil relatively liberal Chinese regime in nominal power, taking in Formosans, maintaining fairness bound long run redound our credit. There is not Formosan element capable acting under military government.
The only alternative somewhat dangerous seems maintain Consular relations present Government purged in no uncertain terms Nanking connections.
My strong opinion, JUSMAG should not come here even as refugees unless we decide must recognize a government here and prepared Taiwan consequences.
Would like urgent any instructions possible.
- Office of Far Eastern Affairs.↩
- November 16, not printed.↩
- November 22, not printed.↩
- Wei Tao-ming, Chairman of the Taiwan Provincial Government.↩
- National Resources Commission.↩
- Supreme Commander, Allied Powers, Japan (General of the Army Douglas A. MacArthur).↩
- United States Relations With China, p. 519.↩