893.01/6–149: Telegram

The Minister-Counselor of Embassy in China (Clark) to the Secretary of State

Cantel 512. Called informal meeting North Atlantic Canton representatives yesterday to discuss prospective move Government from Canton. Present were British, French, Italian and Dutch representatives, Cantel 477, May 26, repeated Nanking 328, Shanghai 281. Portuguese was absent but it is known that his instructions are to follow US–UK lead.

There was complete agreement that Government would be compelled move near future; that Chungking would most likely be next capital; that Government would be most unwelcome there as inviting Communist attack; and after move Government would be mere façade of senior Ministers with no real support; that after short period time at will [of] Communist[s] Government would be forced flee further; and that move would then be Taiwan.

These conclusions are based on agreement that distrust between Generalissimo and Li Tsung-jen and their supporters is so deep as to be insurmountable; on evidence that majority Legislative Yuan, operational sections of certain Ministries and majority subordinate personnel [Page 695] all Ministries are en route or planning to go to Taiwan, thus indicating to us that Chinese themselves admit temporary character move Chungking. It seems to us that Generalissimo is fostering move by offering some of his treasure in hope that Communists will be enticed westward, thus delaying attack Taiwan.

In light of above it was unanimously agreed that we would recommend our Governments that when confronted with request Government follow it Chungking, we be instructed reply that we would request instructions our Governments and that in meantime we would remove to Hong Kong to avoid falling into hands Communists. Such action would give our Governments opportunity survey situation and make unhurried decision re future representation Nationalist Government. At same time it would avoid discouraging forces resistance by telling them frankly we had no intention removing Chungking. Should appreciate Department’s further reaction this suggestion.

British instructions remain unchanged. He has his Ambassador’s direction, still unapproved by Foreign Office, to proceed Hong Kong and await developments. French [Counselor] has opened Consulate Taipei and his instructions are proceed Hong Kong and if Government removes Taipei proceed France. France had not envisaged transfer capital Chungking and he is now suggesting strengthening Consulate there and modification his instructions so as to authorize him proceed homeward in event Government moves Chungking. Position Dutch complicated by fact he is Consul General [at] Canton and his instructions are that he remain Canton. Italian, though without instructions, indicated belief he would be directed follow US–UK lead. He is recommending he be directed do so and authorized open Consulate Canton with jurisdiction Taiwan as well as west China, thus permitting him send consular representative Chungking.

If North Atlantic group is in agreement on action suggested, it is belief others, with exception Iron Curtain countries, will follow. Soviet Ambassador departed May 31 for Moscow on consultation and is not expected return.

Sent Department Cantel 512, repeated Nanking 349, Shanghai 300.

Clark