893.01/5–1149: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received May 12—2:59 p. m.]
Cantel 360. Chu Chang-wei, Li Tsung-jen’s political advisor, has clarified exchange messages between Li and Generalissimo and Li’s resulting plans, Li’s message to Generalissimo was not letter, but was in form notes of conversation with delegation sent from Canton headed by Yen Hsi-shan. These notes were sent by CEC to Generalissimo who replied in letter to Ho Ying-chin. With letter to Ho as written evidence [of] Generalissimo’s intention, Li felt his proper course was come Canton on assumption Generalissimo acting good faith.
Cabinet will be reorganized next few days with either Chu Cheng, President Judicial Yuan, or Yen Hsi-shan likely premier. Ho Ying-chin will continue as Minister National Defense, assisted by Pai Chung-hsi who has agreed serve Chief of Staff.
First move after reorganization will be direct Chen Cheng ship treasure from Taiwan to Canton. Should he refuse, he will be removed as Governor Taiwan and replaced by another. Even should treasure be shipped, eventual removal Chen Cheng is contemplated. At time removal Chen, Li renews his request we take some action strengthening his hand. If we are unwilling make public statement, he hopes Consul [at] Taipei can be instructed along lines suggested Cantel 303, May 1, repeated Nanking 238, Shanghai 191. They believe some such informal démarche by Consul [at] Taipei will have desired effect on Chen Cheng.
Would appreciate Department’s reaction this suggestion. Li seems determined upon action in any event, but is desperately hoping that, in some way, he will have at least our moral support.
Sent Department Cantel 360, repeated Nanking 270, Shanghai 229.