894A.20/11–1049: Telegram
The Acting Secretary of State to the Consul General at Taipei (Macdonald)
452. During call at Dept Nov 9 Amb Koo described efforts being made by Chi admin Formosa and pointed to need US aid enable Chi admin build up Island and utilize Island and its resources for recapture mainland. Amb also referred to ur recent statement to Gimo.
Butterworth made fol reply to Koo: Dept had instructed ConGen Taipei make clear to Gimo US Govt had no intention using its armed forces defend Island. This was done in order prevent any misconceptions on part Chi admin re US Govt position. In past Chi Govt had made misapplication of concentration in its efforts obtain US aid and had failed concentrate on more essential and vital internal measures. Past was being brought up only because of its application to present situation Formosa. Island contained all elements in terms admin and technical civilian and milit personnel and resources to enable Chi admin to make Formosa going concern and external aid was of secondary [Page 422] importance and cld not be effective in absence essential internal measures. It seemed necessary now concentrate on building up Island as example to mainland Chi people of efficient non-Commie Chi admin which wld have beneficial effect in view inevitable comparisons with lot mainland Chi people. Alternative was to concentrate immed on utilizing Island resources recapture mainland at expense internal situation Formosa and dissipation Formosan assets and thus lose support populace and make inevitable repetition on Island of events on mainland. Another misconception held by high Chi quarters was inevitability World War III and desirability doing nothing but await that event which would solve all problems. Chi admin Formosa must rid itself these misapprehensions and concentrate efforts on creating efficient admin rallying popular support and only after such conditions firmly established shld or cld question recapturing mainland be seriously considered.
Koo expressed gen[eral] concurrence foregoing views and said Gen Marshall46 had frequently made same comment to him re Chi expectation World War III wld solve their problems. He further said he had always reported real facts of situation to his Govt but that reports from other quarters reaching Chi Govt may not have portrayed true situation.
In any conversations with ranking Chi officials you shld emphasize foregoing themes.
Full text memo conversation47 being forwarded pouch.