The Ambassador in China (Stuart) to the Secretary of State
[Received March 3—12:04 p. m.]
406. Following article carried in all English-language papers and vernacular press, datelined March 2: [Page 127]
“General Pai Chung-hsi, Minister of National Defense, today blamed General George Marshall’s91 peace negotiations as the main cause of Chinese Communist power and present Nationalist crisis in Manchuria. Reporting to Central Political Council, he said 116,000 Communists which Mao Tze-tung92 moved into Manchuria by land and sea after V–J Day were utterly routed by a series of Nationalist victories culminating in capture of Szepingkai and Changchun in May 1946.
“At that time, Minister Pai asserted, the Nationalists could have wiped out Communists and forged ahead to capture Harbin and Kai-musze in Manchuria ‘without much difficulties’. He said Marshall, however, negotiated a Manchurian truce and stayed the Government’s hands, giving Communists an invaluable respite for regrouping and rebuilding their forces.
“Pai assured council that despite all difficulties, Government is determined to hold on to Manchuria because it occupies a key point in national defense. Pie described Manchuria as ‘door to domination of China’ and pointed to Manchuria’s annual production capacity of 3,000,000 tons of steel and iron, 19,000,000 tons of foodstuffs, 3,000,000 kilowatts of power and 12,000 kilometers of railways as evidence of its importance in China’s national existence.
“Pai expressed confidence in ultimate victory over Communists but warned it will take long time. Pie also warned not to underestimate Communists who, he said, have 20 years’ war experience and are ‘backed internationally’.
“He said war against Communists should be 30% military and 70% political and advocated prompt and proper implementation of Sun Yat-sen’s principles of land reforms and equalization of wealth as best weapons against Communists.”