893.00/2–2849: Telegram

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

695. H. H. Kung’s77 China Press, 28th, inspired by news accompanying return Yen’s mission of imminency peace negotiations and Communists’ willingness cease military activity during period, exhibits unprecedented degree anxiety lest talks fail and hostilities be resumed. Paper sees as greatest menace peace South China faction, led by Sun Fo, which with hopes for increased American aid might hold out for greater concessions from Communists than they are prepared to grant. It declares this viewpoint must not be permitted interfere with smooth progress talks.

“Time for American aid so definitely over—for time being aid to any one party would simply make other more determined continue conflict while aid to both would prolong war indefinitely—even if United States does make such an offer of help at present it would be better take rain check on it than to accept.”

Sent Department 695, repeated Nanking unnumbered, via pouch to Canton.

Cabot
  1. Brother-in-law of Madame Chiang Kai-shek; former Chinese Minister of Finance.