894A.20/11–949: Telegram
The Consul General at Taipei (Macdonald) to the Secretary of State
[Received November 9—5 a. m.]
679. Reference mytel 678, November 9. Following is full text statement by Governor Chen Cheng on the Taiwan situation:
“With the development of adverse circumstances on the mainland, Taiwan has become more and more significant in its strategic and political importance. Strategically, it is more easily defendable than any other part of China and can serve as a base for fighting back and regaining the country. Politically, clinging to democratic ideals, it can be made to demonstrate to the freedom-loving people of China a vivid contrast to the totalitarian tyranny on the mainland, defeating the [Page 417] defeatist view of the invincibility of communism and kindling in the hearts of the Chinese people a hope and confidence for eventual Nationalist recovery. Judging from the limited resources and manpower of this island as compared with the large Communist-dominated area, however, we know that our struggle will be a singularly difficult task and will have to demand long-sustained painstaking efforts.
[“]The Taiwan Provincial Government agrees heartily with the American view that military solidarity and popular support are of primary importance. On the military aspect, great confusion was seen as a result of the retreat to this island of number of troops from Nanking, Shanghai, Tsingtao, Foochow and elsewhere a few months ago. After repeated measure of reorganization, many military units, including army corps and armies, have been abolished, the existing troops are being further trained and substantiated and have been put under one unified command, extensive coastal fortification has been under construction, and general conditions are being gradually improved. The enhanced morale and fighting spirit of the troops have been manifested in the recent battles on Kingmen and Penghu38 Islands.
“In the meantime, the Taiwan Provincial Government has fully realized that the gap existing between the people and the Government should be bridged over and the well-being of the people should be further promoted. To start with, efforts were made to increase production, especially of food, to which extensive irrigation projects and fertilizers, much of which came from ECA, have made conspicuous contributions. In order to bring the benefits derived from production to the masses of people, drastic measures have been introduced in rent reduction for the tenant farmers; such land reform, known as ‘375 rental’ (i.e., limiting rental not to exceed 37.5 percent of the main crop), has produced profound effects on rural economy. The influx of refugees, which caused much concern on this island earlier, has been checked and reduced to minimum by restrictive entry regulations. The menace of food shortage caused by the influx has been offset by increased production, and food prices have been among the most stable commodity prices. Then, a currency reform was introduced in June, whereby monetary deterioration was arrested and a comparatively stable currency was established. For the sake of coordination, all public productive enterprises were placed under unified control. As a result, general economic conditions have been largely stabilized during these few months, though still not without serious difficulties, mainly on account of disturbing influences from threatening Communistic invasion.
“Recently, an outline of a provincial administration program for the year 1950 was passed and adopted in a meeting of the Provincial Government. Politically, the program places the greatest emphasis on the gradual systematic establishment of local self-government on the basis of universal suffrage. Economically, it aims at further increase in production and at the promotion of the well-being of the people, [Page 418] especially of the farmers and industrial workers. In education, though the present number of school children has already much exceeded that during the Japanese times, it is intended to extend further the opportunities of education to those of scanty financial means.
“As the establishment of self-government at different levels will take some time, it is planned that more of the local capable men will be installed in responsible positions and that more officers in government services in general will be recruited locally. It is believed that in this way the people by more participation will find more interest in the government, and that the betterment of the well-being of the people will be the most powerful safeguard against communism.
“As stated above, the difficulties lying ahead should not be underestimated. While the people and the Government of Taiwan should seek their own salvation in a united effort, we are nevertheless looking forward to assistance from our traditional friend, the United States of America. The economic aid through ECA and its Joint Commission on Rural Reconstruction, including the technical assistance of their experienced experts, has already proved of immense value to this island and made considerable accomplishments. An extended program which the United States Government can provide under the present legislation is requested, for it will not only help to augment the economic stability of this island but will also uplift considerably the morale of the people at the present critical moment.
“The most imminent menace in the next few months, however, will be of military nature. While the fighting forces of this island are determined to put up a stiff resistance against any invasion, we are still in urgent need of some military assistance, at least military assistance of a technical character. We earnestly suggest that an American military advisory group be immediately sent to Taiwan, with whom we can assure close cooperation and for whose advice full appreciation and weight will be given.”
I consider this a factual, accurate and realistic statement. The Governor’s request for aid is sound and much more reasonable than anticipated. It is my suggestion that we agree to this request in principle and start working out details for implementation immediately. This is no time for indecision or pursuing a procrastinating policy if we really intend to make a last effort to deny the Communists Taiwan, even if it is a gamble as far as the results of our efforts are concerned or the length of time Taiwan can be prevented from falling into hands of Communists. Time is now of utmost importance and as Generalissimo stated in his reply the fate of Taiwan will be decided in the next few months.
Suggestions and recommendations for a military advisory group will be telegraphed in a few days after discussing question with Attachés.
- Quemoy and Pescadores.↩