893.00/12–3148: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received 3:01 p. m.]
2676. On December 30 Governor Yen Hsi-shan called on me, doubtless at behest of Vice President (see mytel 2655, December 29). He described their perplexity as to whether they should continue civil war or propose peace, and what would happen if Communists rejected their offer. He said Generalissimo stood for continuing fight but Vice President and he have favored political settlement. All-important point was American aid. Vice President felt that he would be in much stronger position in any peace settlement if he could have American backing. I explained that military aid under existing conditions was almost certainly out of question but as to our future policy we could only await developments. Two principles still firm: (1) we were against communism; (2) our historic friendship for China and our desire to help Chinese people remained unchanged. But we could make no suggestions or promises beyond this without adding to confusion. Chinese must make their own decisions. They could be assured that we were watching with sympathetic concern and readiness to assist whenever this seemed advisable. For rest they could only use their best judgment. If they attempted resumption of peace [Page 722] talks and Communists proved themselves to be bent on domination of country for their own partisan ends, people could be aroused to this menace and US would not be indifferent. I promised to inform Department of interview and to advise him if occasion arose.