893.00/4–1949: Telegram

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

Cantel 232. Sources termed by Canton British ConGen as “very reliable” state Communists relaxing demands in Peiping negotiations to point where settlement with Li Tsung-jen representatives becoming possible. Communists reportedly agreeing to coalition government to be formed by PCC in which Ministers of Defense, Foreign Affairs, and Interior go to Communists with balance to other groups. Li and followers to have place in this government. Source also reported that Gimo and followers and Cantonese would not accept such an agreement, but would continue resistance. In discussing this report with us, British ConGen stated belief Communists probably willing modify Original demands if Li and followers would agree re-orient foreign policy in pro-Soviet, anti-Western Power direction, and that this was probably one of principal Communist requirements in present situation.

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While Communists have not up to present given any overt indication abandon stringent interpretation eight points of Mao Tse-tung as basis peace, if they have become convinced of their ability form coalition which they can dominate and if they convinced that following formation coalition there will not remain any residual political entity able to serve as effective base for counter revolution, it is conceivable that they would make concessions which would entice Acting President and followers into coalition and so facilitate crossing Yangtze and penetration South China. Account of British ConGen is borne out by Cantel 212, dated April 14 and also by Shanghai’s 687 to Embassy, repeated to Department as 1206 dated 15 April.18 Despatch quoted in latter presumably by Ravenholt who has excellent sources Nanking and who is careful reporter.

Also, we consider ConGen’s appraisal Communist foreign policy requirements in this situation as probably valid. Sino-Communists’ alignment with USSR on international questions has been complete. Sino-Communists have spared no efforts alienate United States even though by conciliation American opinion so as to permit receipt American economic aid they could immeasurably facilitate achievement their social and economic aims. This propensity place requirements international Communism and Soviet aggrandizement before needs their own people would argue their decision relax prosecution domestic political revolution toward logical goal if by so doing they could commit large non-Communist grouping to anti-American front. It is true that Li has given no indication adoption such course. However, it must be clear to him that he has little or no hope creating effective resistance movement which would make it possible for us help him. In this situation, were rejection of rapprochement with Western Powers to gain him even slight hope political survival, he might well choose adopt such course. Our response Acting President request for financial support, Embtel 709 of 6 April,19 and more recent request for American statement re Yangtze crossing, Embtel 768 of April 15, may well help him make up his mind this point.

Sent Department, repeated Nanking 200, Shanghai 148.

Clark
  1. Latter not printed.
  2. Vol. ix, p. 753.