893.00/3–249: Telegram

The Minister-Counselor of Embassy in China (Clark) to the Secretary of State

Cantel 93. Dr. Ku Yu-shui, Chancellor of National Political University Nanking, says that peace negotiators returned from north, with whom he has talked, all indicate disagreement among Communist leaders re continuing hostilities. Mao Tze-tung is reported to favor cessation hostilities and coalition government. Chen Yi, Liu Po-cheng and Lin Piao favor continuing military operations although Chen Yi is reported reluctant assume command Yangtze crossing operation, believing Lin Piao, who did not encounter serious opposition, should come south and reinforce him. Li Li-san is reported to favor a “drag-the-feet” policy based on his belief that Moscow has not made up its mind whether best interests Communism lie in crossing Yangtze or permitting coalition. He therefore favors stalling along with peace negotiations, at same time slowing down military operations sufficient give Moscow time make up its mind. Source is, of course, loyal member Kmt and what he says should be considered in light of that fact.

From purely military standpoint he says Communists are experiencing difficulty. It requires 300,000 troops keep Yen Hsi-shan contained Taiyuan and another 300,000 to assure stability Peiping area where Fu Tso-yi’s troops have not been disbanded or reincorporated. His information is that although Fu and his generals have been relieved of command, the troops themselves and junior officers are refusing relinquish arms on basis they are professional soldiers and were promised incorporation, together with their arms, into Communists’ forces. Dr. Ku says Communists do not dare disarm them with violence for fear repercussions other Nationalist armies which Communists hope will accept “Peiping peace”.

Sent Dept, repeated Nanking 88, Shanghai 57, pouched Peiping.

Clark