893.00/8–649: Telegram
The Chargé in China (Clark) to the Secretary of State
[Received August 9—8:47 a. m.]
Cantel 886. Li Tsung-jen is a worried man and, I believe, is already planning for the day when he will lead a local area of resistance. He told me today that he planned give increased authority to local governments in the hope that will to resist would be revived. Difficulty was, he said, that local governments could not afford pay cost armies. He inquired this regard whether US would support autonomous areas continuing to resist Communism and admitted finally that he had him self, with Pai Chung-hsi and Ma Pu-fang in mind. In other words, when government is forced flee mainland, Li envisages that he will remain Kwangsi as leader resistance forces commanded by Pai Chung-hsi and he would like American aid. I replied that his question was at same time most easy and most difficult one to answer; that decision US Government would have to be made in light of circumstances existing that time, but he could be assured our desire assist anti-Communist forces wherever they showed signs of effectiveness. I added that accessibility to region occupied would be an element in problem, pointing out difficulty in supplying Ma Pu-fang in Northwest, even with best good will.
Gather from Li that his visit with Gimo, Taiwan, accomplished nothing. Li asked for more arms and ammunition for armies Pai Chung-hsi and Ma Pu-fang and was told by Gimo all available supplies had already been allocated. He asked for money for Pai’s armies and was told that reserves must be conserved so as to last 2 years. He asked for political reform and removal grafting and incompetent [Page 477] officials, both military and civilian, and was told that action that field should not be taken precipitously and in any event presented certain problems. He insisted that Yen Hsi-shan was too old and too busy with other things to fill position Ministry National Defense in addition that Prime Minister and demanded appointment Pai Chung-hsi as Minister National Defense and was told idea was good one but moment was not opportune. In other words, Li admits that he has been stymied in all his efforts to get something for himself out of Gimo, yet he seems willing continue Acting President at least until government forced flee mainland.
Li seemed considerably perturbed over defection three Hunanese armies under Cheng Ming-jen and said it would greatly embarrass Pai Chung-hsi. I continue of impression Pai will not put up any serious battle until chased to hills of Kwangsi.
Sent Department; repeated Nanking 584, Shanghai 479, Taipei 97.