894A.00/6–349: Telegram

The Consul at Taipei (Edgar) to the Secretary of State

199. Garrison Commander, General Peng, says the 50,000 troops from Shanghai’s 52nd, 54th and 99th Armies will continue in Taiwan indefinitely under his command although he would prefer only two good, well-equipped armies to defend Taiwan. Says general situation here worsens daily and Communist take-over inevitable.

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Assistant Military Attaché says local military see Peng now in dominant position here as result of above while General Sun Li-jen must take back seat.

Sent Department 199; repeated OffEmb Canton 55.

Edgar