893.00/2–749: Telegram
The Consul General at Hankow (Callanan) to the Secretary of State
[Received February 8—5:08 a. m.]
27. In private conversation with AMA14 Pai Chung-hsi explained Communist withdrawal (remytel 21, February 315) in terms their need sort enormous war booty, absorb Nationalist war prisoners and decide next move. He does not expect Communist attack near future.
Pai expressed great bitterness toward Generalissimo accusing him worst military blunders in history but confident Generalissimo out for good. Meanwhile, widely circulated rumors here of Communist atrocities and allout US aid can be directly traced to Generalissimo faction who attempting sabotage peace efforts. Pai in continuing effort eliminate Generalissimo’s influence is reinforcing Hankow area and Sinyang with Kwangsi troops. With removal Mayor Hsu, only major Generalissimo official left is garrison commander Chen Ming-jen who slated go soon. Thus Pai attempting strengthen Li Tsung-jen’s hand in peace talks by preventing possibility Generalissimo double cross in Central China.
Despite Pai’s previous statement to AMA re indefensibility Wuhan (remytel to Embassy 8, January 1715), Pai now says will attempt hold it. In view his admission only 2 months’ ammunition supply here and other arms shortages, plus fact of continued monopolization by military of all southbound freight space, this statement must be interpreted [Page 113] as designed strengthen Pai’s plea US aid which he made to AMA. Vague feelers on possibility US aid recently made by civilian advisor of Pai to Consul General but not reported pending more concrete suggestions. Pai claims backing of Kwangtung (see mytel 15, January 3016), Hunan, Kiangsi, southwest and northwest as well as three provinces under his control. Mongolian representative Prince Teh and Ma Hung-kwei representative recently in Hankow and Kwangtung representative en route. Pai proceeding Nanking shortly where he will confer Li and Ho Ying-chin.
Though Pai not optimistic peace prospects due Communist unreasonableness, peace offensive continuing as PPC17 delegates five central China provinces and Kwangsi opened peace conference Wuchang yesterday. Li and Pai peace efforts good propaganda as local Chinese opinion increasingly blaming Communists for continuation war by adopting uncompromising attitude.
Conclusion: Pai backing Li to hilt in struggle eliminate Generalissimo’s influence from Nationalist China, present united front to Communist and seek reasonable peace. But continued cross river and southward movement military supplies indicate Pai will abandon Central China rather than make last ditch stand if Communist pressure too great.
Sent Department, repeated Nanking 24, Canton 2.