893.00/5–1749: Telegram

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

Cantel 392. Tung Kwan-hsien, President Legislative Yuan, says: (1) that Li Tsung-jen has agreed that General Yen Hsi-shan, General Wu Chung-hsin, former Secretary General of Li, and Chu Chia-hua, former Minister of Education, can proceed Taiwan make arrangements for Generalissimo and Li get-together. Initiative move said rest with Yen Hsi-shan who believes that if two can get together, some solution differences may be found; and (2) that while Generalissimo emphasizes importance coastal towns, Li insists on holding interior provinces. C–C clique proposes make Chungking political center with Taiwan and Hainan Islands as arsenals. Should these ideas materialize, government may move [to] Chungking, according Tung, recalling Chungking has for some time been designated alternate capital.

Sent Department Cantel 392, repeated Nanking 289, Shanghai 248.

Clark