894A.00/4–1547

The Ambassador in China (Stuart) to the Secretary of State

No. 637

Sir: I have the honor to refer to the Embassy’s telegram no. 780 of April 10, 1947 in regard to the situation in Taiwan, and to enclose a memorandum prepared by Vice Consul George H. Kerr, now on consultation at the Embassy, in regard to the recent mission of General Pai Chung-hsi, Minister of National Defense, to Taiwan. There is also enclosed a copy of a Central News Agency release of April 7, 194725 which gives the full text of the statement made by General Pai following his return to Nanking. As of related interest, there is enclosed a translation of an editorial which appeared in the Nanking Hsin Chung Hua Jih Pao of April 4, 1947,25 which purports to give “inside” information concerning General Pai’s mission; this newspaper is said to reflect the views of the Youth Party.

The memorandum prepared by Vice Consul Kerr was prepared at the Embassy’s request as an analysis of the possible effects of General Pai’s activity in the light of Mr. Kerr’s knowledge of the Taiwan situation. Mr. Kerr’s personal observation of the bloody events in Taipei and the subsequent brutal suppression of representative Taiwan elements perhaps make his comments appear highly keyed in tone and in certain instances categoric in content. However, with the continuation of Chen Yi’s regime in power in Taiwan, there is coming to be less and less middle ground which can be occupied by coolly impartial opinion.

Respectfully yours,

For the Ambassador:
W. Walton Butterworth

Minister-Counselor of Embassy
[Enclosure]

Memorandum by the Vice Consul at Taipei (Kerr) to the Ambassador in China (Stuart)

On March 17 General Pai Chung-hsi, Minister of National Defense arrived in Formosa for a 10-day (extended to three weeks) investigation of the uprisings then in progress. He conferred with General [Page 446] Chen Yi and his government, granted interviews, issued public statements and made radio broadcasts, of which the principal one was in five languages in an effort to “correct” the world’s misunderstanding of the government’s policy in Taiwan. At Nanking on April 7 he issued a statement which is believed to reflect the Government’s official attitude toward the affair, subject to the Generalissimo’s review of General Pai’s reports.

While in Formosa General Pai appears to have devoted his public efforts to strengthening General Chen Yi’s position, to have accepted the Governor’s explanation of the uprising and to have given full support to the measures taken to quell the disturbances. His radio address to the aborigines in the mountains, asking them to cooperate in driving out dissident elements seeking refuge there and his address to the students of Taiwan (at a University assembly) in which he gave his personal pledge that none should suffer harm, were among his less fruitful actions. In general terms he promised reforms in education (to root out Japanese influences), reorganizations in economic administration (to relieve unemployment) and changes in the administrative system to permit Formosan-Chinese to enjoy greater participation in government.

General Pai’s public statements suggest that the Generalissimo had indicated broad policy toward the affair and had entrusted to him the task of making recommendations for change; General Pai indicated that he expected his reform measures would be adopted. His lengthy statement at Nanking, therefore, must be taken ad interim as a reflection of the Government’s official attitude toward the situation on Formosa, and may be summarized as follows:

General Pai believes the Formosan-Chinese have been misled by long Japanese indoctrination which taught them to villify the Chinese Government, the people and the troops. Japanese educational influence will be eradicated. Ambitious local politicians and communists have plotted and led the uprisings. They are being eliminated. Students, being impressionable and hasty, followed these local leaders. Under stricter control they will now be led to understand the traditional Chinese virtues.

Unemployment is a most serious problem, for which there are various reasons such as the return of 100,000 able-bodied men from overseas service as labor conscriptees and the failure of industry to survive because of the lack of fertilizer for agricultural pursuits.

Formosans should have a larger share in government. The administrative structure will become that of a regular province, but with certain additional departments and bureaus and the provision of deputy department heads, by inference to be filled by Formosans. At [Page 447] some time in the near future Formosans can elect their own mayors and magistrates.

Though the Monopoly and Trading Bureaus have been very profitable for the Government, it is recognized that their operation has restricted the activities of private enterprises. The Monopoly Bureau will be reduced and the Trading Bureau will be replaced by a Supply Bureau.

Public lands (which occupy 70 per cent of the island’s area) will be opened to private agricultural use.

In order to stamp out corruption entirely, a special supervisory commission for Formosa within the Control Yuan will be recommended.

General Pai’s recommendations are in themselves believed to be mainly superficial, and are presented by him with certain serious misrepresentation of fact.

As an ideological corrective, the measures he proposes hold implications that all leadership which has dared to criticise the government since 1945 must be wiped out and a new and properly trained leadership of local people must come into being. The sweeping condemnation of the Settlement Committee for the February 28 Incident leaves no other interpretation. General Pai made no public gesture toward limiting the seizures and executions in progress during his inspection of Taiwan, but on the contrary indicated his approval.

As a political corrective, the transformation of the Government will affect the titles and may affect the prerogatives of the Governor, who remains a Central Government appointee. The enlargement of the Governor’s administrative staff and the creation of deputy posts which can be filled by Formosans is superficial; the one Formosan who heretofore held a Deputy Commission in the Department of Education (since seized and presumed killed) had resigned in February, charging that the mainland Commissioner and his subordinates ignored him, and bitterly charging the Governor (in a personal interview) with having condoned this as general policy toward Formosans. It must be observed, however, that capable Formosans admitted to deputy posts would in time acquire knowledge of executive office at that level, an opportunity (with this exception) so far nonexistent.

As an economic corrective for the fundamental difficulties on Formosa, General Pai’s proposals foreshadow even less economic opportunity for the Formosans. In proposing the abolition of two of the old (Japanese established) Monopolies he chose two which have had least effect on the public economy, namely, Matches and Camphor. He ignored the virtual monopoly exercised by the Government in at least 32 fields of major economic activity in the Government’s total [Page 448] or partial control (shared with the National Resources Commission) over some 222 formerly independent enterprises in these fields. He does suggest that these government enterprises may be “adjusted”.

In proposing that the present Trading Bureau be abolished and replaced by a Supply Bureau, he merely proposes a change in terminology and further proposes that this Supply Bureau may hereafter become the purchasing agent for private industries, which is a serious extension rather than a reduction of the monopoly on import and export enjoyed by the present Trading Bureau, run by a mainland clique.

General Pai avoids suggesting the release of seized (and well-developed) Japanese lands to the Formosan farmer but appears to allude only to the extremely rugged mountain territory of the aborigines and to public forest lands when he speaks of opening 70 per cent of the total acreage to farmers “in accordance with current local land regulations”. This would mean further pressure on the aborigines without substantial gain to the agriculturalist, and suggests a serious threat to the long-cherished forest conservation and soil erosion controls instituted in 1898.

General Pai adheres to General Chen’s misrepresentation of the incident as primarily an organized insurrection and rebellion, characterized by attacks on the Governor-General’s office and the Garrison Headquarters and accompanied by demands that all national troops be disarmed. It may be that for public purposes, at least, a military government has to have a military reason for action against its own people. By alluding to the “slanders” which had been heaped on General Chen’s government General Pai suggests the revenge motive which is believed to have much to do with the systematic killing or seizure of all who have criticised the local government in the past 18 months.

In referring to the “emotional shock” suffered by mainland civil servants (and their material losses) General Pai touches a problem which, it is believed, will become increasingly grave as mainland government employees and civilians abandon their work in Formosa to return to the comparative security of the familiar mainland. During the period in which Japanese technicians were retained to assist in the takeover only mainland Chinese were in a position to benefit by their instruction. General Pai realizes that the withdrawal of key civilians will further cripple the economy.

General Pai refuted assertions made in the China Weekly Review that about 5000 were killed or wounded during the incident, but in his own statements stressed only casualties suffered by mainlanders and dwelt upon military losses. An American newsman present at [Page 449] the interview states that General Pai became confused and finally asked that casualty figures not be quoted. His assertion on April 7 that “about forty” dissidents had escaped to the hills is in conflict with his March 25 statement that approximately 1000 had escaped. It is believed that his attempt to appeal to the aborigines by radio (March 26) reflects a genuine concern that resistance will be organized in the mountain region.

General Pai declared that he did not know whether news censorship, imposed by the Garrison Headquarters, had been lifted or not.

That General Pai’s tour is used as a political issue per se in Nanking is indicated by comments heard among influential Chinese and noted in the press. An article entitled “The Inside Story of General Pai Chung-hsi’s Pacification Mission to Taiwan”, which appeared in the Hsin Chung Hua Jih Pao April 4 is enclosed as an illustration.

In some aspects the conduct of General Pai’s investigation and the presentation of his conclusions smacks of an attempt to recover an embarrassing political situation created when General Chen’s military operations against the people of Taiwan and the revelations of his apparent incompetency there threatened to upset complicated negotiations in the contemplated changes of Government at Nanking. Members of the Central Executive Committee made forceful and public demands for the dismissal and punishment of General Chen Yi, a Political Science Group member and close associate of General Chang Chun.25a The Generalissimo spoke firmly in defense of General Chen Yi on March 10 and later before the Central Executive Committee plenary session. The issue was dropped in the press, which confined itself thereafter principally to reporting General Pai’s trip and his public comments, which in themselves may suggest a preconceived solution to the Formosa problem. For example, a foreign reporter at Peiping stated (in the China Daily Tribune March 26) that “All newspapers [at Peiping] received instructions to cease publishing news of the Formosa fighting, speculation and causes since the situation has been officially declared stabilized”. Vernacular newspaper comment on the Taiwan situation, which had been almost universally condemnatory of Chen Yi, virtually ceased in Shanghai and Nanking after the Generalissimo’s attitude was made known; at the same time the only news stories appearing were those given out by the official agency.

It is concluded that General Pai’s visit to Taiwan further alienated the people of Taiwan from the Central Government. Throughout the negotiations with Governor Chen from February 28 to March 8, responsible Formosan-Chinese, the stable elements of the community, [Page 450] encouraged themselves in the hope that if the Generalissimo were appraised of the true course of events on Taiwan and if he sent a high civil officer of government to investigate, he would of course take steps to remove General Chen, prevent a military occupation and revenge, and reorganize the Government in consonance with the reform program which the officially recognized Committee was proposing for discussion. This faith in the Generalissimo and high officers of the Central Government was the basis for the appeal made to the American Consulate to forward a message to the Generalissimo through the good offices of the American Ambassador.

General Pai’s unfaltering support of General Chen Yi, his identification with the will of the Generalissimo, the character of his reform proposals and the fact that seizures and executions continued throughout his visit of inspection must all be calculated to have increased rather than to have modified the difficulties of the Government in regaining the allegiance and economic cooperation of the Formosan-Chinese People.

G[eorge] H. K[err]
  1. Not printed.
  2. Not printed.
  3. Former Governor of Szechwan.