893.00/3–2048: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received March 21—4:36 a. m.]
512. Controlled American source informs us that Fan Cheng-po in March 17 speech in Control Yuan stated all China is now lost Central Government and that economic military and educational situation is hopeless. In ensuing debate Control Yuan members bitterly criticized Government leadership saying that “little officials” and Government armies in the field are cooperating in refusing to fight Communists and in arranging surrender to them. Critics also stated that many “little officials” in Nanking now have connections with Communists and are “waiting for Communist arrival here”. We consider our source reliable and his information that statements as listed were made in Control Yuan as probably true. This is our first intimation of strong criticism of Government in Control Yuan and first indication of appearance of current spirit of pessimism and defeatism in that organ. We believe that speech of Fan Cheng-po is fair example of current lack of confidence of many officials with present Government leadership and their despair over progressive disintegration of Government’s economic and military position. We note [Page 162] particularly Fan’s statement that Government has lost all China. This echoes opinion of many informed Chinese that situation in north China is rapidly becoming hopeless and that there is no means by which Government control of south can be maintained if north China is lost.
Given present defeatism in Government and its almost total lack of effective leadership, we are inclined to feel that there is some validity in this opinion. Fan Cheng-po is chairman of Board of Shanghai Yi Shih Pao, owned by Bishop Paul Yu-pin, and has been supervisory member of Control Yuan since 1939. Another source which we are unable to rate names him as member CC Clique.
Sent Department 512, repeated Shanghai 206 and Peiping 53.