893.00/3–649: Telegram

The Ambassador in China (Stuart) to the Secretary of State

525. Foreign Minister who is presently in Nanking asked me to call on him afternoon March 3. Our conversation was general and there was apparently no specific reason for his summons.

He said that Lapham (ECA Chief) had not been responsive to Chinese request for silver loan (Shanghai’s telegram 682, February 26 to Department, repeated Nanking 444, Canton 9883). I pointed out that ECA had no authority such matters and added it was improbable that Congress would feel itself in position to make loan to China in light current circumstances.

Wu Tieh-cheng then asked what were our anxieties re China and Chinese Government. I replied that these were two: (1) disunity within Government and (2) lack of public support for Government. In response to his question if I referred to differences between Nanking and Canton group, I replied that this interpretation was inevitable but that there was also considerable confusion respect to relations between retired President and Acting President, that American public did not understand what actual relationship between these two was. After exhausting usual “official” explanations, Foreign Minister frankly admitted that it is difficult for man who had held power so long suddenly become inactive. He continued that there had been some very serious discussions recently and that Government leaders were determined to start new system centering authority in Cabinet which would from now on be responsible with President being relegated to his “constitutional” status. Generalissimo would thus become “elder statesman” consulted on occasion but restrained from giving orders. To make move less pointed, it is proposed that several other of older Kuomintang leaders would be similarly treated. I expressed [Page 164] hope there would be some success in putting these measures into effect. Sent Department; repeated Canton 138.

Stuart