795.00/7–2351: Telegram
The Consul General at Hong Kong (McConaughy) to the Secretary of State
292. Usually reliable source informs ConGen that fairly high Commie official who came Hong Kong last week declared to guests at small [Page 723] informal dinner that there wld definitely be truce in Korea. He added that fon truce second step wld be polit negots, also to be conducted with UN which wld pave way for entry Commie China into UN. After this accomplished, gradual withdrawal of Seventh Fleet from Formosa cld be brought about.
Informant commented that Commie official undoubtedly instructed to make above statements but for what purpose and whether true or not remained matter for speculation. Categorical manner in which he affirmed there wld be truce in Korea appears most significant portion of statement.
Dept pass Pusan. Sent Dept 292, rptd info Taipei 22, Tokyo 14, Pusan 5.