893.00/2–249: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

351. President Li’s order to Executive Yuan that it move back to Nanking from Canton is highlighted by all Chinese papers. The Government, by this act, demonstrated its sincerity in seeking peace with Communist[s]. Presidents of Control Yuan and Legislative Yuan also telegraphed Premier Sun Fo, requesting his return to Nanking. Premier Sun flew to Nanking yesterday and it is expected he will remain there for time being. Legislative Yuan has decided to hold its forthcoming session in the capital.

Nanking peace delegation representing various civic bodies in the capital left for Peiping. While in Shanghai, the five-man peace delegation appointed by President Li held an important meeting yesterday to discuss how to carry out their mission. Reported that as soon as the Government decides its peace policy, the group will leave for Peiping. Shao Li-tze now here scheduled return Nanking today, and reportedly will fly to Peiping within few days.

Lanchow yesterday, General Chang Chih-chung told press that peace with Communists is still hopeful. There will be many difficulties, but must wait calmly for their solution. Communists taking over Peiping featured by all papers.

Chang Kan Army group has taken over the garrison duty of Pukow and Puchen, while General Li Yen-nien’s men have moved to south bank of Yangtze. Emergency measures promulgated in Wuhan.

[Here follows section on other news unrelated to these particular subjects.]

Cabot