893.9111 RR/1–1249: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

114. Re Contel 87, January 12 (repeated Department 109).65 These press items together with other indications such as those reported in Contel 50, January 7 (repeated Department 63) and classified telegrams 28, January 6 (repeated Department as 36) and 39 January 7 (repeated Department as 50)66 suggest vague pattern something as follows: Certain Nanking Government elements from factions which combined to elect Li Tsung-jen as Vice President and subsequently hoped to build a reformed regime uniting Nanking liberals with outside dissident elements such as Li Chi-shen’s KmtRC, seem to be joining in hurried attempt led by the noisy C–C clique–Tu Yuehsheng67 combine to produce at Shanghai a conglomerate of all available elements of actual or professed neutral character, which could hold together long enough to pose as powerful third party ready and [Page 38] able to mediate between Nationalists and Communists. It would include leftists as bait to contact and interest Communists.

Without attempting premature analysis, we conjecture that this “movement” reflects among other things:

(1)
Genuine peace objectives of all elements concerned;
(2)
Desperate conviction of many that foreign mediation is by no means certain of obtainment and that internal mediating force must be somehow manufactured;
(3)
Belief of former Government reformist enthusiasts that Li Chi-shen’s departure to Communist territory ends all hope for establishing liberal anti-Communists’ Government;
(4)
Belief that Shanghai’s internal atmosphere renders it best suited for peace talks;
(5)
Purely selfish desire of C-C–Tu combine and other unscrupulous elements to involve US in protecting Shanghai to save their interests;
(6)
Probable willingness of some local leftists join movement provided they can make political capital therefrom.

It is also probable that importance and scope of movement are being magnified by local Kmt press.

Sent Nanking 91, repeated Department.

Cabot
  1. Not printed.
  2. Last two not printed.
  3. Shanghai political leader.