893.00/1–549: Telegram

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

42. ReEmbtel 26 to Department, January 5, repeated Shanghai 16, Following broadcast from Communist-occupied territory heard Nanking night January 4:

North Shensi News, January 4: A New China Agency reporter, commenting on New Year’s message of China’s No. 1 war criminal, i.e. one Chiang, head of a faction of the Kuomintang, states in brief as follows: With a view to preserving power of Chinese reactionaries [Page 13] and aggressive influence of US in China, Chiang issued a peace-seeking message New Year’s Day. From this message, treacherous plot of both Kuomintang and American imperialism is revealed to Chinese people. This plot was that so-called peace talks should by no means impair interests of four big families and of compradore and landowner classes and should preserve American special privileges in China. This is an attempt to take advantage of opportunity to rest and after recuperating to stage come-back and destroy the revolution. With regard to decisive battle to be fought in Nanking and Shanghai as mentioned in this message, Chiang stated that both militarily and economically Kuomintang’s force exceeds that of Communist Party by several times to several tens of times.

“Reporter states that dealing with military phase alone and disregarding political and economic phases, People’s Liberation Army has 3,000,000 men. Double this would be 6,000,000 and 20 times would be 60,000,000 men. Chiang accused his subordinates of being shaken in their faith because they merely saw the strength of the Liberation Army without seeing their own strength, which exceeds it several tens of times. Kuomintang members have all seen the more than 3,000,000 men in the People’s Liberation Army, but none has seen Chiang’s force which is several tens of times stronger than that of the Liberation Army. This is really extraordinary news. Question of whether the news has any sale in the market is answered by a United Press telegram from Shanghai which states that the reaction was cold. Chiang has lost his soul. He is merely a vampire. No one believes him any more.”

Pouched Shanghai.

Stuart