The Consul General at Hong Kong ( Wilkinson ) to the Secretary of State
[Received September 25—7:47 a. m.]
656. Former officer, Fu Tso-yi who says he is agent of Political Department non-government MND gave Consulate General political report said to be from another former subordinate of Fu’s now working in Ministry of Water Conservancy. Latter who is still in Peking and sent word out by third party attended session of Research Institute of People’s Revolutionary University group at which Chu Teh1 spoke. Chu said “there was no need to fear outbreak of world war since decision as to whether such war would break out was not in America’s hands but in ours”. He said China would definitely not become involved in world war until fully prepared and pointed out that within five years it was expected Chinese industry would be restored to highest level reacted [reached] under Japanese occupation. He stated Chinese troops would not be sent into Korea although Chinese people sympathetic with Korean people and would give them other forms of aid.
Reporting officer has had no previous contact with source and is unable estimate his reliability. However, reported decision to avoid military involvement Korea and emphasis on importance reconstruction conform closely to statement attributed Chou En-lai (Joint Weeka 38, September 22).2 In view source’s alleged connection with MND in Taiwan it is worth noting that his report is in direct contradiction with view consistently expressed by pro-KMT press here that Chinese Communist troops would participate in Korean war.