894A.00/6–2449: Telegram
The Consul at Taipei (Edgar) to the Secretary of State
[Received 10:16 p. m.]
251. Generalissimo reportedly now Taipei from Takao, possibly to attend meeting of southeast Chinese military leaders called here by Governor Chen to discuss area defense plans.
If Department desires attempt to save Taiwan from direct involvement in civil war, now appears opportune time make formal representations to Governor Chen.
During past week Chen’s four principal economic advisers, Hsu Pai-yuan, C. K. Yen, Jen Hsien-chuen and K. C. Wu, in discussing fiscal reform have all told me biggest economic problem is excess military here. Can carry two or three armies but over that produces diminishing economic, political, military returns. Sun Li-jen has said same thing many times and yesterday quoted Generalissimo in same vein but stated Generalissimo’s lieutenants want more for possible attack on mainland and Chen wants personal troops here.
Addition our support now might produce results. If preferred, ECA could take action.
Sent Department 251; repeated OffEmb Canton 99.