893.00/11–149: Telegram

The Chargé in China (Strong) to the Secretary of State

Cantel 1252. During our call October 31 Chang Chun expressed belief that despite diversity of opinions among various sections and leaders of Szechuan, problem of their relations with government can be settled. He did not say they will be settled. Militarily he said government has complete internal control of Szechuan.

Chang asserted present defensive line from Kwangtung to Kansu involving three separate fronts was greatly over-extended and left impression that there will be some consolidation. He is counting on mountainous areas to slow up Communist advance and he too asserted Kweiyang currently most strategic point.

Chang expressed belief that Yunnan is now secure for Central Government; although silver notes are not yet in use there Nationalist Government will introduce them whenever silver coins available to assure convertibility.

We are impressed by Chang’s inner calmness and air of quiet resignation. Nevertheless he is still endeavoring to extend life to a dying government.

Strong