893.001/6–2949: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received June 30—6:17 a. m.]
Cantel 664. Li Tsung-jen confirmed to me that there is renewed activity get him and Generalissimo together. If Generalissimo does not come Canton, he, Li, accompanied by Yen Hsi-shan, will visit Generalissimo either Taiwan or Amoy in near future. Meeting is further effort bridge gap between them and resolve difficulty. Li said Hsu Kan had brought some treasure with him when he returned from Taiwan last time and was at present back in Taiwan for more. With wry face, he admitted, however, that Pai Chung-hsi was short of funds pay his armies. He still had not funds sufficient pay for rations, latter half June. In explanation delay Pai counter-offensive, he said Pai was busy reorganizing armies in which, he said, there are too many divisions and not enough troops.
Sent Department, repeated Nanking 443, Shanghai 379.