Marshall Mission Files, Lot 54–D270

Minutes of Meeting Between General Marshall and General Yu Ta-wei at No. 5 Ning Hai Road, Nanking, September 23, 1946, 10 a.m.

Also present: Colonel Caughey

General Yu Ta Wei opened the meeting by asking General Marshall what he considered was the object of the Communists in preventing the meeting of the Five Man Committee. General Marshall replied that he could not quite penetrate their purpose unless it is the feeling that if the Committee of Three meets instead, and at the same time, the stalemate is continued they would feel they had gained their point by proving that the National Government did not wish to cease fighting. Whether this is their reason for insisting that the Committee of Three meet first, General Marshall did not know but he was certain that the recent shakeup in the Democratic League, which possibly would lessen the Communists’ power in the State Council, was a definite element in their insistence that the Committee of Three meet prior to the Committee of Five.

General Yu Ta Wei asked General Marshall if he knew what the Communist stand would be if the Committee of Three were convened. General Marshall replied that he felt quite sure they would insist on reverting to the status as of 13 January with reference to territorial acquisitions. General Marshall stated however that he felt he also knew what the Government proposal would be and that was, they would insist on the completion of the five conditions imposed by the Generalissimo in July [August? ]. These two positions under the present circumstances would appear diametrically opposed. General Marshall said that he was ready to participate in the Committee of Three anytime, but that he realized it would be necessary to wait for the Generalissimo’s return to Nanking in order to determine specifically what restrictions the Generalissimo would now insist being included in any agreement for the termination of hostilities, and he would wait providing the Generalissimo did not delay his return.

General Yu Ta Wei said that he would communicate to the Generalissimo the substance of General Chou En-lai’s 21 [15] September memorandum (MM 145) and inform General Marshall of the reply. General Marshall cautioned General Yu not to make an issue of the [Page 221] point raised by General Chou En-lai to the effect that minutes of meetings would be published since this is not the real issue. What is required is the Government’s reaction to the meeting of the Committee of Three as proposed by General Chou En-lai.

In elaboration of this thought, General Marshall impressed on General Yu the delicacy of the present situation and the possibility that the Government’s stubborn position might possibly force the Communists into the Soviet fold. In this connection, General Marshall told General Yu that at the present moment the Communists were of the opinion that he, General Marshall, had the power to force the Government to meet various terms or demands and that they use this in their propaganda in an effort to bolster their own cause. It is for this reason particularly that propaganda on the Government side would aggravate the situation.

Speaking of propaganda, General Marshall informed General Yu that until very recently, he, General Marshall, had not referred to the most damaging aspect of surplus property transfers; that is the gold the National Government could secure by disposing of this property for cash with which to support a continuation of the campaign of force. General Marshall stated that he was concerned over the fact that certain Government Officials were abusing, or taking advantage of his efforts to assist China by utilizing the facilities to pursue their military campaigns. He referred to ships in particular. General Marshall categorically stated that he would not take any action to support the National Government in a campaign of force and that he had been willing to proceed with the various programs to benefit the people of China.

General Yu stated that he was interested in constructive efforts to break the present deadlock and added that General Marshall’s recent suggestion concerning the organization of the State Council had thus far been the best approach to this problem. However General Yu Ta Wei indicated pessimism and attributed his pessimism to a feeling that General Chou En-lai had received new and stiffer instructions from Yenan. General Yu continued by stating that the National Government wanted a cessation of hostilities but did not see the advantage in calling the meeting of the Committee of Three when it was known beforehand, according to his feeling in the matter, that the Communists would not accept the Government’s proposals. General Yu then stated that he did not want to be on the Committee.