893.00/7–2349: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received July 23—6:22 a. m.]
Cantel 805. Conversation last night Cheng Szu-yuan repeated almost word for word contents Cantel 783, repeated Nanking 516, Shanghai 441, Taipei 69, July 19 [20], and said subsequent developments have confirmed his unhappy prediction Gimo would leave Canton without any real attempt settle differences with Li. Cheng characterized Gimo’s tactics with one Chinese word “tuo”, meaning combination of delay and evasion. Best example Gimo’s facility in side-stepping issues was his promise bring up question Pai Chung-hsi appointment as Minister National Defense at “appropriate time” which never arrived.
In terms utter frustration over Li’s position and bitter damnation Gimo’s maneuvers, Cheng summed up situation as follows: Gimo has no intention effecting any real reform in govt or military leadership and steadfastly insists on maintaining his Formosan fortress even at expense abandoning entire mainland to Commies. Li still believes drastic reorganization National Defense Ministry and installation Pai as Minister imperative if tide ever to be turned against Commies. But Li depends on Gimo money dole. Thus the dilemma: If Li cannot reform, he loses; if he does try reform, Gimo cuts off dole and Li still loses.
Cheng continued: Gimo, viewing scene with cold-blooded calculation, feels certain Li bound to fail. This ultimate collapse of Li and loss entire China will leave Gimo sitting high and dry on Formosa, Li disposed of, waiting for outbreak third world war and end to Commie problem in China. While awaiting Li downfall and world war III, Gimo will busy himself fortifying his position on Formosa, keeping a deft hand in mainland affairs, and building up prestige abroad as great anti-Commie leader.
For story told from different angle, see Cantel 800, July 22, repeated Nanking 533, Shanghai 450, Taipei 75.
Sent Dept, repeated Nanking 535, Shanghai 453, Taipei 76.