893.00/6–3049: Telegram
The Consul General at Peiping (Clubb) to the Secretary of State
[Received July 1—5:25 p. m.]
1099. Alien employee … this office June 17 forwarded personal letter Li Li-san noting consular connections. Li’s secretary Sun Fa June 18 made appointment and called same evening. Sun stated Li very busy but glad to receive letter and offered transmit anything … might have to tell Li.… said merely desired pay respects whereupon Sun promised let him know when appropriate time. (… formerly attached Executive Headquarters47 [and] knew Li [in] Manchuria.)
In discussing economics Sun emphasized that hesitation entrepreneurs to invest was due lack understanding principle mutual benefit to labor and capital. Said much remained be done to remove doubts and bring confidence. Sun admitted military developments were too rapid for political work to keep abreast and that shortcomings inevitable. Said that economic potentialities were greater than apparent and things would look better when new democratic government began function. By present Communist policy only privileged classes comprising minority were hit, with majority to benefit in time.
[Page 402]Queried re bitter feelings toward Americans who had sent so much relief goods needed by people, Sun stated that what Americans had done in words and deeds to Communists was thousand times more antagonistic than otherwise. Distresses of civil war were designed in USA and made in China and could not be redeemed simply by shiploads relief supplies. Communists had been unusually big-hearted towards Americans, considering serious blunders latter had committed and suffering caused. They harbored no hatred for American citizens but certainly were unable forget US Government’s China policy of supporting Kmt to destroy the Chinese people.
Sun denied Communists had received more than moral support from Soviets. Said it was entirely due to people’s own efforts that present successes had been achieved. Re status Dairen, Port Arthur, Sun said it was people’s task make China independent nation with maintenance of sovereign rights, that any nation dreaming of colonies in China territory would be disappointed, that any nation thinking China had to rely on it for national reconstruction would be mistaken. (Note Sun evaded direct answer.)
In conversation June 27 ex-mayor Ho Ssu-yuan said that he had learned from source near Li Chi-shen that Communists had anticipated they would shortly be able establish relations with USA but that they had discovered that American side would demand as condition for recognition Communist respect treaty obligation. He attributed to this Communist realization recent recrudescence anti-foreign statements. Believe purported explanation invalid. Communists presumably desire appear strongly anti-foreign to Chi while perhaps trying mollify foreigners themselves with “explanations” incidentally designed cause powers adjust policies to Communist benefit. I believe Communists are worried by course events particularly by (1) their political isolation and probably continued Soviet exploitation of it, (2) continued refusal Nationalists surrender [(]Contel 1091, June 28 to Department48), (3) lethargy foreign and domestic trade and probably growing appreciation immensity economic tasks before them, (4) failure “imperialists” be harried by PLA advance.… told me some time back Communists fully expected Nationalist Government accept Communist peace terms April, had actually made arrangements for signing ceremony. Ho Ssu-yuan reports growing conflict ambitions in camp “democrats” particularly, and Communists’ uneasiness at possibilities for development something akin old warlords, with Communist military leaders set up in high authority different areas.
Dutch Consul reports well-connected Chinese official was quick to reject suggestion first stage foreign relations would be on de facto basis, stating that would be unsatisfactory Communist side, relations would have to be de jure.
[Page 403]Sent Nanking 765; repeated Department 1099, OffEmb Canton 191, Shanghai 733.