Foreign Relations of the United States, 1949, The Far East: China, Volume IX

894A.00/8–3049: Telegram

The Consul General at Taipei (Macdonald) to the Secretary of State

Taipei, August 30, 1949—3 p. m.
[Received August 30—5:37 a. m.]

429. During long talk with Wang Shih-chieh this morning he made the following statement:

1. British attitude in Hong Kong of flirting with Communists for trade very annoying and detrimental to Nationalist Govt. Wang feels British definitely anti-Nationalist but believes they will have severe internal Communist troubles Hong Kong. He takes strong anti-British attitude.

2. Wang expressed concern regarding news stories during past few days regarding US plans to occupy Formosa and reported discussion regarding future of Taiwan between Wu Te-chen⁵ and General MacArthur during latter’s [Wu’s] visit Tokyo. Wang feels Communists responsible for some of these stories but said he is under impression due to letter just received from a friend in Washington that Formosa has been considered in recent high level Washington discussions. He inquired if I had any information on subject or regarding progress of Committee of Three⁶ studying our Far Eastern policy. He assumes Formosa is one of the topics of discussion by Committee of Three. I replied that the United States is definitely interested in the political and economic stability and security of Taiwan and anxious to see it kept out of Communist hands. I pointed out that it has been the policy of the US to assist the Nationalist Govt to strengthen Formosa against communism and to that end gave and is giving economic assistance through ECA and JCRR. I assured him I knew nothing of alleged military occupation plans and regarded recent reports as pure newspaper stories and rumors.

3. There is considerable weakness in the army’s officer corps according to Wang and many officers have lost their will to fight. He said a new spirit must be instilled in the officers and [he] advocates replacing many older army commanders with younger men.

4. Wang said Generalissimo has no intention of resuming position of President but he is going to assume a much more active part in national affairs than during the first few months after his retirement. (There has been plenty of indication of this already.)

5. Wang reverted to US China policy and asked if I knew when the report of the Committee of Three would be finished. He said he hopes our future China policy will be bi-partisan. While appearing slightly impatient with the delay in announcing a new China policy, Wang gave impression of being confident that additional American aid will be forthcoming.

Sent Department, repeated Canton 198.

Macdonald

5. Chinese Minister Without Portfolio.
6. Committee made up of Ambassador at Large Philip C. Jessup and consultants Raymond B. Fosdick and Everett Case; see Department of State Bulletin, August 22, 1949, p. 279.