893.00/2–2249: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received February 22—4:14 a. m.]
Cantel 70. Acting President Li64 tells me peace negotiations are proceeding normally, as in light of the overwhelming desire for peace, Communists do not dare refuse negotiate. He anticipates, however, that when terms of peace are discussed, Communists will demand practical surrender which would be unacceptable. They have insisted in talks in Peiping that all relations, cultural and material, must be severed with US, demanding prosecution of war criminals and incorporation all military forces into Communist Army. Li said he would accept any reasonable peace, but would not surrender.
It must be made abundantly clear at that time to the Chinese public and to the world that [it] is Communist intransigence which prevents peace. Li will hope at that time to rally resistance behind him and revive will to fight. He says he has received telegrams strongly supporting his program from the five Ma’s65 and from the Governors of Szechuan, Yunnan and Kweichow. Also since his arrival in Canton he believes Kwangtung generals are solidly behind his program. All realize Communist strategy in trying to separate regional areas and are aware of necessity of sticking together. Li realizes the need for new blood in Cabinet if he is going to revive will to resist and said that either at time breakdown negotiations or earlier he would bring younger and more active men into the Government.
When that time came the US must realize, he said, that the war in China would have become an international issue as a Communist-dominated China would have serious repercussions in Southeast Asia and the Pacific. He would hope for aid from the US and he mentioned a $200,000,000 silver loan which he said had been discussed in detail by Finance Minister with Merchant66 and Parker.67
Li said Generalissimo did, in fact, continue to interfere in many ways and said: “That problem will have to be handled with care”. He claims that leaders in increasing numbers are endeavoring persuade Generalissimo step entirely out of picture and give him, Li, free hand. Li is flying Kweilin today, thence to Changsha, Hankow, and back Nanking. He will be joined in Nanking in few days by certain [Page 144] members of Cabinet, including Vice Premier Wu Tieh-cheng. It is still uncertain whether Sun Fo will go, although Kan Chieh-hou, Li’s advisor, told me positively Sun Fo impressed by generosity Li’s visit Canton, had agreed go north.
Sent Department; repeated Nanking 67, Shanghai 40.
- In telegram Cantel 65, February 20, 2 p. m., the Minister-Counselor of Embassy reported Acting President Li’s arrival at Canton on an inspection trip.↩
- Mohammedan leaders in northwestern provinces of Ningsia, Tsinghai, and Sinkiang.↩
- Livingston T. Merchant, Counselor of Embassy on special detail to Taiwan.↩
- Paul Parker, Acting Treasury Attaché in China.↩