893.00/8–2849: Telegram
The Chargé in China (Strong) to the Secretary of State
[Received August 28—8:20 a. m.]
Cantel 1040. Following statements were made by Chu Chang-wei yesterday.
Northwest China: It seems certain Ma Pu-fang withdrew his forces intact from Lanchow during afternoon August 26. This step was necessary view failure of Ma Hung-kwei’s troops to arrive from Ninghsia and failure Hu Tsung-nan render any measure support. Chu remarked that Hu can be relied upon for nothing.
Southeast China: Chu claims that East River situation could possibly be expected improve within 2 or 3 days provided Nationalist troops in area were properly deployed, but since this involves close coordination between two generals, outcome is, of course, uncertain. He [Page 510] insisted strongly that there was no danger of local turnover to Communists in or about Canton, and on more than one occasion referred to “over-emphasis” on possibility of such development particularly by American military observers and newsmen and Hong Kong newspapers. According Chu, Yu Han-mou will, without question, remain loyal, whereas any actions of Hsueh Yueh are of no significance. Chang Fa-kwei was stated to have informed President Li that at such time as his government broke cleanly with Generalissimo he would whole-heartedly enter into cooperation with Li.
The Generalissimo: Chu stated that upon Generalissimo’s most recent visit Canton, President Li again attempted persuade him take initiative in installing Pai Chung-hsi as Minister National Defense. Generalissimo as usual did not refuse but temporized. Chu says Li intends upon Generalissimo’s return from West China to take up matter again, and, failing positive action on part Generalissimo, will request, and if necessary order, Yen Hsi-shan to vacate his concurrent post of Minister National Defense and install Pai on his own responsibility regardless of consequences. He stated this move could no longer be delayed in view of grossly unequal division available military supplies and money among various field commanders. For example, whereas Pai claims 300,000 troops and supposedly actually has that many, Soong Hsi-liang claims have 300,000 men in Hupeh and Hu Tsung-nan draws supplies and money on basis of 450,000 men. These figures for Soong and Hu are obviously considerably padded, but they are receiving supplies proportionate to forces claimed.
Generalissimo indicated he would spend approximately 2 weeks in West China. Although his itinerary is not definitely known, it is believed he will visit Hanchung and Sining and possibly other points. Chu asserted during Generalissimo’s present visit Chungking he is continuing his favorite old game of playing off various leaders against each other. Chang Chun definitely desires resign, but Generalissimo has insisted he remain in office, without granting him any additional authority.
Re Cantel 1012, August 23, repeated Nanking 653, Shanghai 515, Taipei 141, Chu again expressed keen desire of President Li to obtain details on military cargo landed Taiwan from US.
Sent Department Cantel 1040; repeated Shanghai 521, Taipei 150, Nanking 660.