893.00/5–2349: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received May 24—9:21 a. m.]
Cantel 457. There is much rejoicing Kmt reactionary circles and in fact generally over Li Tsung-jen’s statement castigating Communists and declaring determination fight to finish. Kmt leaders with whom I have talked express assurance statement will be followed by meeting between Li and Generalissimo, probably this week; that bickering and jockeying for position are ended and there will henceforth be unity in resisting Communist advance.
Chen Li-fu was frank enough to admit, however, that basically statement had changed nothing. Generalissimo, he said, just did not trust Li to continue fight against Communists under all conditions and Li’s statement would not alter situation. Chen hoped, however, that [Page 341] meeting Li and Generalissimo would result some working arrangement where Generalissimo would be sufficiently close to operations to assure that Li did not conclude peace with Communists. Chen envisages creation some such policy committee as that previously suggested in which Generalissimo, as head Kmt, will form policy jointly with Li, leaving Li executive. Yen Hsi-shan, who seems to have made great impression both among Li’s followers and in Kmt reactionary circles, is to be emissary between Li and Generalissimo. As indicated above, I cannot see how Li’s statement changes picture. The distrust is too deep-seated to be removed by any mere statement. Li seems to be weakening, however, in his previous determination to refuse responsibility without full authority and it is conceivable that further meeting with Generalissimo may result in creation some such policy organ as that designated by Kmt reactionaries. Although such supreme policy committee might give appearance unity, am afraid selfish interests are too predominant to result in real unified action.
Repeated Nanking 317, Shanghai 270.