893.00/9–546: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received September 5—6:45 p.m.]
1423. On September 1, General Chou En-lai gave a press conference in Shanghai on surplus property agreement. North China Daily News was only Shanghai English language newspaper which carried report on this interview in which Chou charged that US is helping Chinese Govt in its war against Communists and that American policy at present is reason for civil war. Although US has sent its mediators to China it at same time assists Kuomintang, latest manifestation being surplus property agreement. This assistance nullifies efforts being made by US to bring about peace. Chou stated his opinion that Kuomintang not only intends to keep on fighting but will also persist in making unacceptable demands. American aid proves US has decided to assist only one party govt. Chou further stated that unless US proclaims its mediatory position and withdraws its forces it should announce its all out support for Kuomintang. This assistance, while helping Kuomintang become strong, is contrary to basic American interests and is being pursued because Americans lack a clear vision of present situation.
Chou denied foreign reports that fighting in China is not an all out civil war and stated that though appointment of Ambassador Stuart revived Communist hopes subsequent developments have destroyed them.
Full text follows by air mail.36
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