893.00/3–1849: Telegram

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

Cantel 149. Chang Chun is returning Szechuan tomorrow. He is resisting pressure Ho Ying-chin to remain Cabinet without Portfolio, but says if Ho insists sufficiently he will accept although he plans spend little, if any, time Nanking.

He agrees with thesis that Communists plan complete preparations cross Yangtze, then offer peace terms which he anticipates will be “Peiping peace” and therefore unacceptable. He is confident no leaders south Yangtze will accept “Peiping peace”. As “reasonable” peace which he would accept and which he is confident would be accepted by Li Tsung-jen and other leaders, he suggested: (1) Democratic government, (2) Socialist form of economy, (3) nationalized army, (4) freedom of the individual, (5) equality. He does not believe Communists will agree such peace and that resumption of hostilities is inevitable. Speaking for the southwest only, he said “we will defend ourselves”. Equally, however, he felt confident other leaders south Yangtze would continue resistance.

Sent Department, repeated Nanking 127, Shanghai 91, pouched Kunming, Chungking, Peiping, Hankow.

Clark