893.00/14782a: Telegram
The Secretary of State to the Ambassador in China (Gauss)
186. According to an Associated Press despatch dated Tientsin, July 27, the Yung Pao reported that the Chinese Communists had agreed to place themselves under Chungking’s supervision and “to disband the New Fourth Army”, in return for which the Central Government was said to have agreed to subsidize the Communists by more than 2,000,000 yuan per month and slightly to extend Communist territory. It was reported in a United Press despatch from Shanghai dated August 3 that, according to Chinese Communist sources there, the Central Political Council of the Chinese Communist party had at a recent meeting drawn up a political platform for the area under the jurisdiction of the Communist authorities at Yenan providing for non-Communist representation in the administration of that area.
The Department would appreciate receiving by air mail your appraisal of the foregoing reports.