893.002/6–1649: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received June 17—10:09 a. m.]
Cantel 596. New Premier Yen Hsi-shan is old man, old even for his 67 years. After long conversation, would almost say he is in his dotage and it is to this man free China is entrusting its destiny.
Yen plans assume active role in administering affairs and hopes by his leadership to improve morale and by revising tactics along lines pursued so successfully by Communists 2 years ago to inspire Nationalist soldiers to fight. Also he plans a budget almost in balance, drawing only small sums each month from gold Hsu Kan is endeavoring obtain from Generalissimo. His talk was largely in vague generalities and didn’t carry conviction. He wouldn’t admit possibility government might move Chungking, saying “Cabinet will fight here to the last”.
There is nothing to indicate that government under him will be any more efficient than its predecessor. Each Ministry is arranging deploy its forces in Taiwan, Chungking and Canton and in no Ministry, unless it is that of Education, is there any evidence of constructive thinking. The stultifying hand of Kmt leadership has the government in its grasp. No one seems capable of taking positive action and there is increasing evidence of fatalistic feeling that as course of events cannot be altered resistance is futile. I even sense a growing feeling of “why bother go Chungking?” Bulk ministerial personnel is going Taiwan now. I gather controlling element in decision government move Chungking rather than Taiwan is fear international repercussions [Page 389] should seat government be established other than on mainland and particularly on Taiwan, status of which might be subject to question. There seems feeling impatience with slowness of march of events and desire get on to next phase wherein some way God, US or Confucius will bring about dawn of better day.
This connection, am becoming increasingly suspicious that Li Tsung-jen is in contact with Communists. Chu Chang-wei has been for some days in Hong Kong consulting Huang Shao-hsiung, member abortive peace delegation, who is reported on reliable authority to have recommended that time Li make his own peace with Communists. Press carries report which I am investigating that Liu Fei, former Vice Minister National Defense, and also at peace conference, paid secret visit Canton to see Li Tsung-jen this connection. Shall follow this matter further, of course, but deployment Pai Chung-hsi’s troops and his unhappy state of mind when he last visited Canton tend confirm my suspicion.
Sent Department Cantel 596, repeated Nanking 398, Shanghai 341.