893.00/8–3146: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received September 2—1:27 a.m.]
1409. To those seeking desperately for some tangible sign of hope in a situation characterized by spreading hostilities, the leaks during the past week of the formation of the Committee of Five to discuss the reorganization of the State Council have given some encouragement.
The reverse of this picture, apart from the fighting itself, was two announcements on August 28 which perhaps more accurately reflected the attitudes of the principal disputants. A Communist spokesman in Nanking stated that if the Government should proceed with the reorganization of the Government prior to November 12 without formation of coalition, the Communists would then have no alternative except to convene leaders of Communist controlled areas at Yenan to consider the “next step”. On the same day General Chou En-lai, in answer to questions at a press conference, outlined the Communist position as it now stands. Full text of this statement is being submitted by airmail despatch.27
Coincidentally the Minister of Information,28 in a statement generally considered as emanating from the Generalissimo himself, announced the determination of the Government to reorganize prior to November 12 with participation of those who would accept Government terms; laid full responsibility for cessation of hostilities upon the Communists who could end fighting and prove their sincerity by revoking their mobilization order and evacuating certain areas which constitute a menace to security and threaten communications. Statement also announced Government’s determination to conclude political tutelage period, intention not to reconvene Peoples’ Consultative Council and indicated that PCC draft constitution must now be revised.