894A.00/4–2949: Telegram
The Consul at Taipei (Edgar) to the Secretary of State
[Received 7:44 p. m.]
132. Developments on mainland heightened air of expectancy here. Price flights and merchant reluctance to sell perturb man in street. Rumors of all sorts rife. Smaller officials express concern over future supplies and markets and general local nervousness. They and local press anxiously expecting abler action to halt economic deterioration and stabilize island economically and politically. My comings and goings closely watched and reported. C. K. Yen37 believes time ripe for abrupt economic reform and commercial reorientation (see my next telegram). However, encountering difficulty with Governor Chen who lays economic troubles to activities of “evil” persons and prefers use military edicts for forceful suppression. K. C. Wu now here from Shanghai has respect of and believed great influence over Governor, thinks in C. K. Yen terms but fears autonomous moves now might cause Legislative or Control Yuan reprimand or even attempt replace [Page 321] Chen, thus further confusing situation and possibly forming two-camp tendency here. Says action must await more complete mainland disintegration. Groundwork meantime being laid.
Talks already under way with Hong Kong for trade development. Expect early approach to SCAP by local authorities re expansion two-way trade.
Sent Department 132; pass Nanking 122, Off Embassy Canton 18.
- Finance Commissioner of Taiwan.↩