Office of the Historian

893.6363/12–549: Telegram

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

Hong Kong, December 5, 1949—4 p. m.
[Received December 6—5:23 a. m.]

Cantel 1326. While waiting for telephone call to Admiral Kwei1 (telCan 1324, December 52), Yeh discussed on several subjects, interesting of which are briefly stated below:

1.
Private reports indicate Asiatic Petroleum Company has closed deal with Chinese Communists for 100 million Hong Kong dollars’ worth of petroleum products, payments to be made in New York from European sources. No indication of duration of contract.
2.
Just prior to departure of Li Tsung-jen for US this morning, he advised President not to make direct statements to press or public but to do so through his secretary, view fact US Government understands trip is for medical reasons only. (Incidentally at airfield Li practically ignored Yeh who had to seize President’s arm and draw him aside for one very brief conversation.)
3.
Yeh proposed recently in cable to Generalissimo that government remain Luichow peninsula except Foreign Office which should be Hainan with rapid communications between them. Generalissimo failed reply. All Foreign Office personnel from Chengtu now being sent Taiwan via Hainan apparently at Generalissimo’s orders, except Vice Minister, 3 secretaries and 2 code clerks.
4.
Foreign Office officials, far from being Generalissimo enthusiasts, are unanimous in “cursing” Generalissimo.
5.
Recent refusal local authorities clear further CAT flights arose from frequent failures by CAT to observe regulations, rather [than?] from political causes. Apparently CAT has straightened matter out.
6.
Chinese Government will attempt transfer assets of CNAC and CATC to other company or form new foreign company to take them over. As last resort will try destroy them rather than let Communists have them. Yeh feels this in accord with US aviation policy toward Chinese Communists.
7.
Yeh would like to know whether Indian Government has actually notified US Government of intention recognize Chinese Communists this month as recently report[ed] by United Press.

Sent Dept Cantel 1326, repeated Shanghai 578, Taipei 236, Hong Kong by hand.

Strong
  1. Vice Admiral Yung-ching Kwei, Commander in Chief of the Chinese Navy.↩
  2. Vol. ix, p. 1180.↩