893.00/11–949: Telegram

The Chargé in China (Strong) to the Secretary of State

Cantel 1268. Foreign Minister Yeh states he going Taiwan in few days to see Generalissimo. Claims will repeat to Generalissimo what he has urged in past that southwest China including Szechuan, Yunnan, Kweichow and part of Kwangsi be considered locale of “last stand”, that all resources of China be devoted to this end and that idea of turning Taiwan into final bastion following loss of all mainland be abandoned. Says government now divided into two distinct camps on this question.

Yeh described southwest as shield for southeast Asia. In addition he felt Government would be fiction if had no hold on continent and said “apart from legal aspects” island could not long be held. He referred to hopes of many that MacArthur would wish assure security of Taiwan, that US would underwrite its defense. Thinks Air Force [Page 582] and Navy should be given up and savings be devoted to southwest and first line troops now Taiwan should be used southwest.

In closing subject Yeh said hoped all friendly nations would refrain from expressing belief either in public statements or by individual representatives that Taiwan can be made impregnable. Anything of this nature would end any slight hope of centering major effort on continent. Although Foreign Office supposedly controlled by Generalissimo, during past month Yeh has given several indications not entirely overtly that his thinking is much closer to Li-Pai group than to Generalissimo. Foregoing is another such evidence.

Sent Department Cantel 1268; repeated Taipei 209; Department pass Taipei; pouched Hong Kong, Kunming.

Strong