893.00/2–2649: Telegram
The Consul General at Hankow (Callanan) to the Secretary of State
[Received February 28—7:37 a. m.]
57. Ma Chieh-lien, Chief Foreign Affairs, Pai’s headquarters, conversing with Martin74 stated his belief Li-Pai group will make terms with Communists if latter agree give Kwangsi clique prominent place coalition government, retain control Kwangsi troops and allow free hand south of Yangtze. He convinced important split Communist ranks with Mao Tze-tung being amenable make terms with Li government. Quotes returned Pai delegates from Communist territory as saying, while Communist Army superior Nationalists, because unified, Communist civil administration weak and not as revolutionary as touted.
Ma continues pessimistic regarding unity Nationalist China (mytel 44, February 1675) readily discounting Pai statement to Ma that he has Kwangtung backing (mytel 38, February 14). Ma claims T. V. Soong now remitting money through Bank of Canton for expenses Hsueh Yueh’s76 troops who would combat any incursion from Kwangsi. In Hunan, Cheng Chien continues to be uncooperative with Li government and play lone hand. His refusal accept Li’s invitation accompany him Changsha to Hankow is indicative. Generalissimo and company continued control of purse strings and thus of air force and various generals and politicians still seriously hampering Li government. Illustrative local incident was refusal of CAF allow chartered plane land Hankow military airport take Hupeh Legislative Yuan members to Nanking. Continued frustrations Li government may hasten settlement above terms, leaving Generalissimo group holding bag.
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Sent Department 57, repeated Nanking 47, Canton 18.