893.00/12–2648: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received December 26—5:13 a. m.]
2891. During call made by officer of Consulate General on Carsun Chang at Chang’s invitation, Chang made statement to following [Page 688] effect: Some Cabinet members, including Chang Chun, have asked Carsun Chang to sound out US policy in the event that Generalissimo-resigns. Believing it US Government’s wish that Generalissimo resign, Cabinet members request US indication support of a succeeding non-Communist Government (which Chang in response to inquiry said would presumably be headed by Li Tsung-jen) in order strengthen Government bargaining position with CCP in peace talks to follow. Apparently possibility US aid is sole remaining card in Central Government’s hand with maximum hoped for result being retention by non-Communist regime of area south of Yangtze. Before Generalissimo will resign, American aid must be arranged informally. Chang Chun (according to Carsun Chang) feels it impractical approach Embassy directly but would be glad visit Shanghai to discuss matter with whatever representative Embassy might designate in event that American Government’s attitude favorable. Should American Government be unwilling even to discuss above project, Generalissimo will stubbornly retain control with resultant total collapse of anti-Communist front.
Carsun Chang anxious receive some indication of US Government’s reaction to this approach if possible within next few days.
Following our constant policy, officer of Consulate General carefully refrained from any commitment or encouragement other than agreeing to report matter to me.
Sent Nanking 2169, repeated Department.