894A.00/4–1149: Telegram
The Consul at Taipei (Edgar) to the Secretary of State
[Received April 11—1:34 a. m.]
110. At his request called 9th on T. V. Soong, who received me alone and abruptly stated his mission at Generalissimo’s order is to find political, economic, military formula to preclude Communist takeover: Taiwan economy must be restored, island must not be dragged down to mainland level, Taiwanese welfare must be above anything Communists can offer, claimed and indicated wide knowledge local conditions, has brought survey group, will stay about one week.
Replying to request my opinion and recommendations, I merely referred Governor Chen’s three-point program, (1) strengthen not separate Taiwan yen, (2) retain 40% export proceeds, (3) solve mainland remittance problem by goods imports, not currency credit. Said Chen appeared satisfied Nanking visit results. Soong criticized each solution, said Chinese military still 50 years behind times. Taiwan needs simple [Page 313] clear-cut bold solutions. Had not yet taken time consult Chen Cheng except few minutes at airport. Proposed Taiwan representation on financial board to instill confidence. I mentioned local desire elect mayors and magistrates. Soong opposed “synthetic democracy”. Cited Legislative Yuan and derogatory of C. Chuang, notorious provincial council head. Criticized nationalization all island industry resulting inefficiency and expressed desire unload.
Asked re military behavior. I cited several news reports. Soong spoke highly Sun Li-jen and said no trouble his troops. Questioned authenticity news report his removal. Mentioned failures Chen Yi, successes Wei Tao-ming.26
Several times indirectly intimated low regard Chen Cheng. I said nothing.
Requested meeting with American official best posted in economics here. I suggested ECA Craig.27 He twice suggested there must be someone else. Replied no. Have delayed Craig meeting till Tuesday28 hoping instructions.
Repeated Nanking 100, OffEmb Canton 10.