893.00/7–649: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received July 6—8:05 a. m.]
Cantel 691. Wu Tieh-cheng, Minister without Portfolio, is considerably encouraged by recent developments. Gimio, he says, will visit Canton this week and his presence here will be occasion for issuance [Page 408] statement solidarity signed by civilian and military leaders headed by Gimo and Li Tsung-jen. He, like many others with whom I have talked of late, takes comfort and certain sense security from fact Communist advance has been held up past few weeks due serious floods Hunan-Kiangsi. They read all sorts of things into delay: Communists are handicapped by uprisings in Honan-Hupeh-Anhwei areas; their troops are having difficulty getting acclimated to South China, there being sickness and lack accustomed food. He does not expect resumption Communist offensive until September and says at that time Communists will meet real resistance.
Wu says government has enough treasure to support monetary program for one year (they admit deficit 30 million silver dollars per month which makes Wu’s statement sound fantastic).
Meetings are taking place in Taipei at present, he said, to determine military strategy. Principals at moment are Gimo, Tang En-po and Chen Cheng. Two months ago, he said, decision had been taken not to defend Kwangtung. Now however outlook was so much brighter, firm decision had been taken to defend Kwangtung and southeast coast. It was still undecided whether Fukien and Kwangtung would be placed under one command, with Kwangsi, Kweichow and Yunnan under another, or all 5 provinces under single command. (He ignores fact that neither Yunnan nor Kweichow will have any dealings this government.) Reinforcements were already arriving Amoy, Swatow and forces around Canton would be strengthened, he said. He spoke with assurance and gave picture of confidence that government would be able offer alternative Communism which would encourage further US aid. This connection, he said Kan Chieh-hou (Li man, of course) had gone US too soon. He should have awaited demonstration here that Nationalist government offered alternative Communism. When that happened he, Wu, would like visit US seek aid and hoped then aid might be forthcoming.
Wu expressed conviction that at last Li Tsung-jen has removed from his thinking any possibility of accommodation with Communists. He, Wu, had seen Liu Fei when latter visited Canton and he confirmed what Li told me, that Liu did not bring Communist proposal. He did however bring condemnatory letter from Shao Li-tze50 to Li and preached abject defeatism, using many arguments to persuade Li and other[s] that their cause was hopeless and that they had better recognize the inevitable and make peace while peace was still possible. Obviously, although Liu brought no Communist proposals, he did bring Communist threat of dire consequences of further resistance. Nevertheless, the lull has created recurrence confidence.
Sent Dept. Cantel 691, repeated Nanking 466, Shanghai 401.
- Member of Kuomintang peace delegation to Peiping.↩