893.01/10–2149: Telegram
The Chargé in China ( Strong ) to the Secretary of State
[Received October 21—10:05 a. m.]
Cantel 1215. Although government just settling down in Chung king, there is already much discussion on “next move”. Few people seem to feel city will be secure beyond new year. Pessimism and gloom pervade all ranks, stemming not only from military aspects but also [Page 556] from economic conditions. Assume that many government officials [un]willing accompany government in future move.
Interest shown by Yen Hsi-shan and Chang Chun in commencing land reform Yunnan and withdrawal Kwangsi Provincial Government from Kweilin leave little doubt Kunming to be next capital. Movement troops into Yunnan and from NE to SE Szechuan are indication government now fears attack from SE more than from north and that strategy will be to defend approaches Yunnan and maintain corridor between Yunnan and SW Kwangsi.
Considerable interest here reference US intentions toward Formosa. Recent broadcast from Peiping stating Communists devoting efforts toward Formosa, thus delaying entry SW China, has been subject much discussion. Despite additional “lease on life” which might be expected this area, people are no less gloomy over future. Feel US hand will be forced in Formosa.