893.00/10–2449: Telegram
The Chargé in China (Strong) to the Secretary of State
[Received October 25—2:01 a. m.]
Cantel 1223. ‘In addition to matters in several preceding telegrams, Chu Chang-wei made number remarks which seem entitled to credence. Perhaps requests he made of Embassy and prospect of trip to US led him make more factual statements.
Following are gist of Chu’s remarks: Situation in Szechuan much more favorable than were given understand in Canton. Although Generalissimo accomplished little during late trip this area except in relation Hu Tsung-nan and Soong Hsi-lien (details unknown), there seems be considerable support for President Li. Dissident leaders at Chengtu called on President soon after his arrival and exhibited keen desire to be of service. In contrast same leaders refused visit Generalissimo. Chungking Mayor Yang Sen is working closely with President (which is important because of his control of Twentieth Army, 16th hsien in and around Chungking and local Kmt headquarters). Yang is apparently transferring allegiance from Generalissimo to Li. Even Governor Wang Ling-chi is willing cooperate with Li to considerable degree.
Premier Yen Hsi-shan is regarded as weak link in organization. He frequently talks too much and is afraid take any action Generalissimo may not approve. Impasse frequently results because Yen must countersign official actions of President. President urged appoint Yang Sen [as] Chungking garrison commander in place of Sun Chen but Yen said only he would think it over and has pigeonholed question. As mentioned Cantel 1170, October 6,29 Yen’s days as Premier may be numbered.
Ku Chu-tung is still Chief of Staff. Although Hsiao Yi-hsu appointment as acting Chief of Staff has been confirmed, Ku is being given opportunity quietly to leave scene. At Canton it had been arranged among all parties that not long after Pai Chung-hsi assumed overall command of central and south China areas he would become Minister National Defense.
Open US distrust of Generalissimo and determination not to channel further China aid through him places President in bad situation in that Generalissimo holds on harder than ever to his treasury, knowing [Page 565] he will not share in further US largesse, whereas President unable cut loose from Generalissimo for lack of own resources. Generalissimo is “devil” and Li does not wish to compromise with devil because in doing so he has lost and continues to lose support from liberals. All grants of treasury to government [garble] are hard won. On last trip Taiwan, Yen got 200,000 ounces gold which enough for 2 months. Generalissimo’s current holdings estimated at US $200 million (this believed high). Generalissimo expected visit Chungking near future. In fact President Li sent him telegram inviting him (this seems curious unless it is face-saving device to make it appear Generalissimo’s visit due to invitation or unless Li wishes confront him with great measure support he receiving and thus force show-down or larger cuts from Generalissimo).
- Not printed.↩