893.00/11–2348: Telegram

The Acting Secretary of State to the Consul General at Taipei (Krentz)

63. Dept is not repeating your 87 Nov 23 to Nanking. As long as Natl Govt has any prospect of maintaining itself, this Govt must continue to honor in deed its policy of recognition and support and therefore at this stage it must refrain from any action which would have effect of diminishing Natl Govt’s power or authority. It is very concerned about fate of Formosa and appreciates your awareness of actualities and potentialities.

As regards suggestion contained in fifth para your tel under reference, one of many difficulties which would surround any such course of action is fact that if Gimo disappears from scene, Vice Pres under the Chinese Constitution succeeds and Emb considers it likely that in such eventuality Marshal Li will attempt to negotiate a coalition govt with Communists which govt would therefore constitute “the future legitimate govt”.

For these and other reasons Dept is inclined to view that if disintegration should occur support of a separate regime in Formosa holding itself out as trustee for island pending eventual de jure disposition at Jap peace conference would seem to be more feasible means of protecting US national interests with due regard for welfare and desires of people of Formosa.

Above is for your background info and any comment you may care to make. Dept wishes however to reiterate undesirability of premature action or discussion in any form.

Lovett