794A.00/9–450: Telegram

The Chargé in China (Rankin) to the Secretary of State

secret   priority

340. Foreign Minister Yeh called me urgently this morning to say that Generalissimo had summoned him and Prime Minister to discuss as yet unidentified news agency report of negotiations between US and India involving China. Report is to effect US offers support project of trusteeship for Formosa in return for India’s foregoing sponsorship of Peiping regime for UN membership.

Yeh asked me if I had information on above. I replied in negative and said I did not believe story should be accepted at face value [Page 484] adding that word “trusteeship” is being loosely used in press and elsewhere without general realization either of its legal significance under UN charter or practical implications in case of Formosa.

Foreign Minister said he had been giving much same explanation as mine in response to questions he is receiving from various quarters. He deplored unsettling effect of series recent events and reports, whether correct or otherwise, on Chinese Government, armed forces and Formosan population. Understands US readiness have the “aggression” aganst Formosa investigated by UN but fears anticipated arrival UN investigators, including Russians or satellites, would not only serve Communist propaganda ends but would promote unrest among Formosans and possibly cause split in Chinese Government. Democratic elements, he said would wish conform UN decisions however distasteful but military probably would refuse allow Russians or other satellite representatives to land on island. Ostensible reason would be security but more important would be unwillingness swallow arrival of enemy representatives to investigate anything on Formosa when everyone else agrees it is the Communists who need investigating. Bulk of Formosan population would interpret UN investigations as directed against Chinese Government rather than US aggression.

Yeh expressed hope US recognized fact that Formosa today one of most peaceful and stable parts of Asia with state of law and order better even than Hong Kong; also that substantial progress has been made in improving effectiveness of government and economic and military conditions, besides extending democratic processes. Believes it would be most helpful if US Government could take public cognizance these facts and contribute further to allaying uncertainty caused by recent events and rumors by stating definitely that future status of Formosa must await peace settlement with Japan. Alternative time limits involving “consideration by UN” or taking of “international action” are being freely interpreted to mean that any morning people in Formosa may wake up to learn that they have been turned over to some international authority, with reasonable certainty that in resulting confusion Chinese Communists will actually he ones to take over.

Department pass New Delhi; sent Department 340; repeated information New Delhi 2.

Rankin