793.00/2–150: Telegram

The Consul General at Shanghai (McConaughy) to the Secretary of State

secret

514. Pass CSGID, Department of Army, from Soule. Cite SA–34. Following is consensus of Chinese Nanking, Shanghai interviewed past two months:

Two evil forces, Kremlin-dominated Chinese Communist Party and decomposed, corrupt KMT have organization and leadership sufficient be considered political entities China. A third group potentially capable uniting democratic, liberal China is mentioned but no concrete evidence its existence found.

CCP rules China. Axiom “who controls armies rules China” true today as has been for centuries. CCP controls PLA five million strong. PLA 70 to 80 percent former KMT turncoat units, being indoctrinated Communist propaganda. Estimate, with exception minor regional revolts, will remain loyal People’s Government while government feeds it and Commander political-military areas remain loyal. CCP vigorous, youthful, arrogant political libertine which has imposed its will [Page 303] China by force arms, selected international Cominform for companion, Stalin for leader. Majority Chinese apathetic its rule. CCP leaders fanatical international Communists. Chinese claim party wins support first because of youth and enthusiasm; second it requires subordinate quislings, [garbled group] the people with reasonable honesty; third close liaison with China’s unscrupulous northern neighbor promises peace China which Chinese seek and many believe must be obtained through such relationship; fourth many Chinese believe socialism necessary for progress of nation. Chinese state new government losing support because first Chinese fear northern neighbor believes Stalin having raped China of Manchuria, Inner Mongolia, parts Sinkiang, possibly most North China may satiate desires and scorn CCP leadership; second CCP failed better economic conditions; third many CCP leaders are ignorant, unable act intelligently; fourth working man finding his condition worsened rather than improved; fifth “Kan Pu”1 resorted to extremes in mistreatment people in country. Chinese have been ruled by force, and recent years by corrupt, dictatorial, one party government. To expect Chinese people to suddenly rise discard present rulers is “to satisfy hunger with painted cakes”. Most Chinese agree to recognize deal with CCP on international scale would be run risk continued insults abuses of ignorant officials. US should recognize CCP for what it is—deal with it as evil force in world that cannot be ignored, stand ready assist China, if any popular movement rises that holds hopes annihilating it.

Contacts believe (corrupt, decadent, almost defunct) KMT which forced flee mainland for refuge has forfeited all claim to leadership of China. Atrocities it inflicted on people prior withdrawal won hate Chinese. KMT purposeless but sometimes destructive air raids and blockade against China are to Chinese like someone pounding on festered boil. Such annoyances add dislike of Chinese for former master and used as effective propaganda building hatred for US. Chinese who hate Communists and hope for change frankly state KMT must rid itself Generalissimo and his corrupt, [garbled group] ancient henchmen if it desires return China. They claim KMT had opportunity reform, assert itself, produce new able leadership worthy Chinese peoples, but failed China, disappointed US. They state KMT under leadership Generalissimo and followers is political party that holds no promise or hope to China. Chinese friends state further US support of KMT and its faulty leadership will lower prestige of US in China and Far East.

Chinese hope for split in Communist Party and combination of one or more Chinese military leaders, and liberal KMT military leader [Page 304] like Sun Li-jen2 produce new leadership necessary save China and establish true democratic government.

US policy properly oriented but should not close door. Increasing continued efforts required convince Chinese US, Western democracies are the genuine friends China. Acts which appear hostile to Chinese, as distinguished from Chinese Communist Party, will decrease friendship for US.

Economically Communist People’s Government deteriorating. Communist leaders claim 1950 will be worst year. Millions are admitted by party leaders on verge starvation. Qualified observers handicapped by lack accurate information, believe economic conditions worse than leaders realize and doubtful government can weather storm. Without economic aid from USSR, with starvation, economic failures, with proof Russian designs on Manchuria, Inner Mongolia, Chinese anti-foreign spirit may assert itself in an anti-Russian movement. US should be prepared, ready support exploit such movement. Generalissimo, followers anticipate such movement and appear be best organized force oppose Communists but they earned hatred of Chinese. US should avoid being placed position where it forced support this unpopular leadership. Chinese state impossible new liberal leadership take root grow China while USSR backs Communists and US backs Generalissimo. Debatable if new leadership strong enough oppose Communists will blossom if given opportunity. It apparent that it will not come forth while majority Chinese believe it hopeless because it cannot expect support from outside China and must oppose both Generalissimo backed by US and Communists backed by USSR. If US withdraws recognition KMT Government as government China, result will place US in position where it can either recognize libertine Communist People’s Government, or encourage new leadership which may blossom with hope defeating communism when economic crisis places severest tests on new People’s Government in February or March 1950.3

McConaughy
  1. Presumably, the reference is to the Bureau of Public Security of the People’s Republic of China.
  2. Commander in Chief of Ground Forces on Taiwan.
  3. On February 4, the Consulate General at Shanghai in its telegram 571 transmitted the following message:

    “Consulate General feels that Soule’s summary of consensus of interviewed Nanking-Shanghai Chinese (transmitted in Contel 514, February 1) merits study as excellent appraisal of general trend thinking and convictions of average intelligent Chinese. Consulate General’s impressions gained from its own Chinese contacts closely correspond to Soule’s observations.

    “Consulate General notes, however, that as verified to us by Soule, the sentence “CCP leaders fanatical international Communists” appearing in early part of telegram should not be construed as “all CCP leaders’ but rather as those leaders who constitute faction presently dominating CCP policy. Majority of Consulate General’s as well as Soule’s Chinese contacts take view that there is important group of CCP leaders definitely opposed to Moscow control, which group, although thus far unable dictate major policy has considerable potential power. (Chase).” (793.00/2–450)