793.001/1–2750: Telegram
The Consul General at Shanghai (McConaughy) to the Secretary of State
447. Eyes only for Secretary. ReContel 430 January 26. In call made morning 26 January St. Louis, Chou Ming-hsun, after some discussion ECA matters, said he had reported his talk with Chase to Chen [Page 301] Yi. Said that Chen’s initial reaction was of querulous tone. Quoted Chen as stating that Chase seemed trying impose conditions and stipulations which Chen could not put himself in position of accepting.
According to Chou, Chen then declared he had not wanted anything in nature of secret contact or underground arrangements; that, if contact were wanted with American Government, “People’s Government” could always telegraph Secretary of State requesting opening office at Shanghai or other point. (An assertion very difficult to reconcile with Chou’s previous statements to St. Louis and Chase re Chen’s envisaging open split in new regime and desiring to lay his own line direct contact with American Government before American Government personnel left Shanghai.)
As to Smith–Bender case, Chou quoted Chen as stating following substance:
Chen had already made inquiries, and preliminary report received indicated that men were actually making reconnaissance flight over combat area on behalf KMT: were forced down and one of men slightly wounded, given immediate medical care, have been confined in “officer’s quarters” at small village near Tsingtao and given best food available for PL A troops. Despite nature of this report, Chen’s group wants maintain as good relations as possible with Americans. If ConGen or Naval Attaché wants submit request for his personal intervention, Chen willing to entertain request and it might well be possible as goodwill gesture to arrange release, which should not be difficult matter “provided men were still held some place within Chen’s command area”. If they have been moved to some other area, for example Mukden, problem would be more difficult as request would then have to be referred to some other commander. Chen therefore is ascertaining present whereabouts of men.
According to Chou, Chen also remarked that, although relations with America very difficult at present, there exists much goodwill toward America among Chinese people including even his own top subordinates; and that it is his desire aim help maintain such goodwill.
In reporting Chen’s reaction to Chase’s statement re need for evidence of authenticity of Chen’s approach through Chou, Chou appeared in real unhappy frame mind which St. Louis felt probably attributable to Chen’s having indicated to Chou some dissatisfaction over manner in which Chou had represented Chen’s position and views. Some of Chou’s remarks led St. Louis suspect that Chen may have displayed to Chou some surprise and dissatisfaction over apparent character of relations which Chou had established with St. Louis and Chase. St. Louis also thinks likely that Chou may actually have, unwittingly or wittingly, misinterpreted Chen’s approach in some manner; or at least that Chen for some reason felt it expedient to charge Chou with so doing. Further possibilities that Chen (conceivably [Page 302] worried over quality of ConGen’s security) may have become suddenly nervous and decided “pull in his horns” while gauging situation further, or that he had just received some new information re Mao’s Moscow mission which rendered his plan for establishing contact with American Government less urgent or less desirable.
Believing it would be inadvisable for Chase to take initiative in seeking another meeting with Chou, we propose as next step having St. Louis, at his next “ECA” talk with Chou, explain, as he has already done to some extent, that Chen seems to have misunderstood Chase’s meaning; that there was no thought of imposing conditions on Chen; that idea is merely to find way of establishing identity of Chen’s representative, which is normal precaution as much for Chen’s protection as for our own; that there is no insistence on any particular way; that Chase would be glad to have Chen suggest any way which would provide necessary evidence; et cetera (all of which had been already stated by Chase).
Meanwhile we are expressing appreciation of Chen’s readiness to consider request for Smith Bender release and taking advantage of his offer. Developments in this regard will henceforth be reported a separate matter lower classification levels.
Soule and Frankel informed. (Chase)