893.00B/6–949: Telegram

The Ambassador in China (Stuart) to the Secretary of State

1250. Philip Fugh6 called on Huang Hua7 at latter’s request yesterday. Huang referred to Fugh’s question at earlier conference: Whether CCP desired China be first Communized or first industrialized, since two apparently could not go along together. Huang said he could not answer this question; that CCP is anxious to have economic recovery for Chinese people; that this goal requires (1) end to civil war and (2) receipt of American aid which will be decisive. Fugh interpreted this to mean CCP, or at least so-called liberal wing (Huang is believed to be Chou En-lai man), places industrialization ahead of Communization. This is first time Huang has raised, albeit indirectly, question American economic assistance.

Huang continued that CCP could not follow isolationist policy in China’s reconstruction and that CCP would require particularly American help. Fugh remonstrated that this was hardly consonant with CCP attitude of constant vituperation, with treatment of ConGen Ward and staff Mukden, with HMS Amethyst incident and subsequent [Page 378] misrepresentation thereof. Huang replied as soon as normal diplomatic relations established all such issues could be easily cleared up. He was forced to acknowledge, however, truth of Fugh’s assertion that occurrences such as those listed would only make more difficult establishment of friendly relations.

Huang went through his usual routine of US assistance to Kmt and US underestimation of CCP strength. He did say, however, that USSR could not give China required assistance since Soviet expectations had not yet been realized.

Sent Department; repeated AmEmb Canton 517, Shanghai 671.

  1. Personal secretary to Ambassador Stuart.
  2. Director of the alien affairs office of the Chinese Communist military control commission at Nanking.