893.00/12–1549: Telegram

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

Cantel 1335. Transfer of Liu An-chi and his forces from Hainan to Formosa may indicate:

1.
Pai Chung-hsi given free hand in Luichow Peninsula and Hainan with no or at least minimum support from Generalissimo. Li Tsung-jen may thus be retaining office solely in hope that if US to supply military or financial aid he will be in position influence delivery to Pai direct. Li may bring up question in US of developing Hainan resources, as means increasing income for military purposes. Li previously raised this problem with Embassy Chungking.
2.
Generalissimo feels that need for Liu An-chi on Formosa as means checking any ideas Sun Li-jen14 and his friends may have on seizing power. Liu has proved thoroughly faithful to Generalissimo, [Page 630] who now has to consider his control of Formosa more important than checking Pai Chung-hsi whose prospects, while still dismal, have improved perhaps 10 percent with departure Liu An-chi forces.

Sent Department Cantel 1335, repeated Taipei 245.

Strong
  1. Commander in Chief, Taiwan Defense Headquarters and Deputy Director of Military and Political Affairs for southeast China.