894A.00B/10–1049: Telegram
The Consul General at Taipei (Macdonald) to the Secretary of State
[Received October 10—11:58 a. m.]
568. After imparting information contained mytel 566, October 10, K. C. Wu said, if Formosa is held and resistance groups on mainland assisted, Reds can be defeated within 3 years and democratic government restored China. He thinks present organized military resistance mainland doomed, expecting Canton fall within week to one month followed by successive defeats. Formosa, however, must be denied Communists because he feels they will encounter increasing administrative difficulties, growing opposition from people resulting in pockets resistance in China and when system sufficiently weakened from internal troubles Taiwan can be used as base for launching new offensive mainland. He thinks these troubles will become sufficiently serious by spring to counter attack.
Plans now under consideration by special military, political and economic committees of Taiwan branch Kmt extraordinary committee for defense of island and liberalization of provisional government. Wu said confidentially civilian group dominated by himself, Wang Shih-chieh, Hollington Tong and Huang Shao-ku are insisting on government made up of civilians for Taiwan plus broad reforms including freedom of press, free enterprise and giving Formosans important administrative positions if they are capable of filling them. It is to be a government by law not decree. He even proposes suggest Chiang Wei-chuang, a Taiwanese independence leader, be given position of trust. Wu is confident civilian group will win Generalissimo over their side and after that Wu confided in strictest secrecy that he intends to present following plan to Generalissimo and extraordinary committee Kmt which he feels confident they will adopt: US should be approached for assistance and cooperation with Chinese Government to save Formosa. In reply to my question what form of assistance and cooperation he had in mind, he said military supplies, especially planes, ammo, naval craft and military advisors. Re military advisors, he will insist it be mandatory to accept their advice and he would turn over entire supply system to Americans to operate as Chinese cannot control supplies properly due widespread corruption. Said he has not worked out all details of plan, but hopes it can be presented to us by November 1 but wants to be sure first that proper democratic reforms will be made here in order to prove to US Chinese can reform themselves. Claims this information given me because he wants it passed on State Department inasmuch as it might influence our thinking and prevent US from writing off Formosa as reported by Newsweek.
[Page 399]This nebulous plan strikes me that K. C. Wu is trying to find a new approach for identical often-repeated requests for aid. He has great confidence in his ability influence Generalissimo to agree wide reforms, and continues stress big change in Generalissimo’s attitude. However, if he is supported by Wang Shih-chieh and few other Kmt trusties Generalissimo might consent to any plan in last attempt obtain US assistance in order enable him maintain Kmt as recognized government. Wu and Wang Shih-chieh work closely together and undoubtedly have considerable influence over Generalissimo.
Conversation of Wu’s might have been just a feeler or an indication that Generalissimo is preparing set himself up as head of Nationalist Government with headquarters here, and openly break with mainland group. Suggestion that Wu favors giving capable Formosans positions in provisional government could have some connection with and confirm rumors of proposed semi-autonomous government Taiwan.
Sent Department 568, repeated OffEmb 208.