893.00/7–849: Telegram

The Minister-Counselor of Embassy in China (Clark) to the Secretary of State

Cantel 703. Chu Chang-wei56 tells me Li Tsung-jen finally wrote Generalissimo saying he planned inspection trip Fukien, Taiwan, [Page 411] Hainan and would like see Generalissimo en route. Generalissimo had replied saying he planned come Canton immediate future and would hope see Li then. Chu expects Generalissimo arrive Canton almost any day. Advantage will be taken Generalissimo’s presence Canton to ask to organize “supreme policy committee” so dear to hearts C–C clique.57

Chu evinced considerable perturbation over Generalissimo’s Taiwan statement to press,58 inquired what State Department reaction had been to Generalissimo’s remarks, and what reaction might be if Generalissimo resumed office. In reply I mentioned Secretary’s statement59 re Generalissimo’s statement and stressed our disinterest in who might lead resistance in China so long as resistance is effective. I said we could not conceivably voice any preference between factions or leaders in Free China and that our hope was all would pull together.

With some bitterness Chu mentioned military conference Taipei held under Generalissimo’s auspices and said planning future strategy was task Ministry National Defense, not Generalissimo. Nevertheless Generalissimo was determined Tang En-po60 would command resistance armies SE China including Chekiang, Fukien and Taiwan, and Chu seemed think nothing could be done about it. He said Li Tsung-jen is determined Pai Chung-hsi61 shall become Minister National Defense but is meeting resistance from Yen Hsi-shan62 who, Chu says, is afraid of Generalissimo.

Although Chu expressed unfamiliarity with financial program, he understood gold actually being shipped from Taiwan to support program. This connection he said his estimate total Generalissimo treasure-trove is US dollars 300 million.

Discussing visit US Dr. Kan Chieh-hou,63 I gathered Kan’s report of his conversation with the President was not as forceful as would appear to have been warranted by the memo of that conversation supplied me by the Department.64 When I told Chu of my recollection of the conversation, he asked if I could give him copy of memo as he wished make sure Li Tsung-jen had accurate report of what is in President’s mind. I promised endeavor obtain Department’s authorization [Page 412] comply Ms request. If Department agreeable supplying Li copy memo, please repeat it to me by cable as my copy has been burned.

Sent Department Cantel 703, repeated Nanking 473, Shanghai 406.

  1. Secretary and political adviser to Acting President Li Tsung-jen.
  2. Led by Chen Li-fu, Chinese Minister without Portfolio.
  3. Infra.
  4. When asked at his press conference on July 6 about the interview, the Secretary of State stated that the United States recognized the Chinese Government, an aid statute was “on the books”, and the United States through the Economic Cooperation Administration (ECA) had been giving all aid that could be effectively delivered to China “at the present time”.
  5. Former commander of the Shanghai area; subsequently Pacification Commissioner for Fukien.
  6. Military and Political Affairs Director for Central China.
  7. President of the Chinese Executive Yuan and concurrently Minister of National Defense.
  8. For documentation on mission to the United States of the Acting President’s political adviser, see vol. ix, pp. 699 ff.
  9. June 22, ibid., p. 708.