893.01/12–148: Telegram

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

2379. Controlled American source has been informed by usually reliable Chinese official, member of Legislative Yuan, that decision was reached by certain Cabinet ministers and certain other Kmt party leaders on November 28 that Government would move from Nanking to Canton and Chungking and concurrence of Generalissimo this decision was requested. As submitted to Generalissimo, plan includes movement of Executive, Control and Legislative Yuan and President’s office to Canton, and Examination Yuan to Chungking. No detailed plan was made for movement any except heads of Ministries and certain key staff members. Generalissimo believed to have concurred in principle and given tacit consent. Ministries are taking individual action implement plan and are directing staff members leave Nanking soonest possible. In many cases no funds are being furnished for move. Legislative Yuan members instructed to Canton are told no funds are available for trip and no accommodations at destination. Minor officials are resentful this procedure and bitterly condemn Government’s inefficiency and lack concern for their welfare.

Above information is generally corroborated by American correspondents. From these and similar indications it appears likely that Government will move without its essential administrative apparatus in terms of bulk its administrative personnel. Main source of Government’s power in its new location will consist of personal prestige and authority those ranking officials making move but these will be diminished by fact of Government’s flight. Also, its military and economic resources will be sharply reduced below present levels.

It is difficult foresee how transplanted Government will have capability perform its essential functions and exercise effective centralized control over that part of country not yet in Communist hands. In this situation likelihood exists that provincial administrations west, southwest, and south China will now develop considerable degree autonomy. Their continued attachment Central Government will be subjected to considerable strain if Communists threaten them with military occupation or form rival government to which provincial authorities could conceivably adhere. Such compulsions will be difficult resist in face prospective comparative impotence of present National Government. It is difficult to see how present Government can develop resources which could attract organized support, and so be assured of any degree of permanence as a political entity with authority to make and implement policies on any considerable scale.

Stuart