894A.20/11–349: Telegram
The Consul General at Taipei (Macdonald) to the Secretary of State
[Received November 3—7:12 a. m.]
654. Reference Deptels 412, October 29 [28] and 419, November 1. Accompanied by Martin, I conveyed US views re Formosa to Generalissimo this morning. He appeared very interested but an expression of displeasure was apparent when statement re previous misgovernment of Taiwan was translated.
After conveying Department’s message to Generalissimo, his first question was to whom was this message addressed, to which I replied I was instructed by my Government to deliver it to him personally. Generalissimo appeared pleased that the message was for him.
He then asked me my own opinion at present re conditions in Taiwan. I pointed out that, while present economic condition of the island is not bad, there are many danger signs and that it could deteriorate [Page 407] rapidly which would be disastrous. I mentioned that large numbers of troops from mainland and refugees who had come here several months ago were cause for considerable alarm and if they had continued to enter in force the strain on the economy of island would have been more than it could have stood. I stressed that a steady and rapid rise in prices accompanied by food shortages plus other privations which civilian population would have to undergo would tend to make people lose all confidence in present government and that they would be more likely to turn to communism. I remarked that, while not a military man, it is my understanding from talking to military experts and our own Attachés, that present defenses of Formosa leave a great deal to be desired. I also told him that it has been brought to my attention that there is growing discontent with present government among the local population which probably could be alleviated if some qualified Formosans were taken into the provincial government. This at least would make them feel that they are part of the governmental organization and inspire them to assist in defense of the island.
This seemed to be about all the Generalissimo was interested in hearing and then remarked that he wanted to study the message I had conveyed to him from the State Department and that he would call me later and give me his ideas re conditions in Taiwan and what should be done. He made other vague remarks about seeing me again and discussing the general situation.
The Department’s message was translated to Generalissimo by one of his own translators but, according to Martin who had a prepared translation with him, Generalissimo’s translator did excellent job in translating message as I delivered it.
The Generalissimo was exceedingly cordial and friendly and at end of the meeting gave both Martin and me impression that he was highly pleased, perhaps not by the message we conveyed to him, but due to the fact that I was instructed to deliver it to him rather than to someone else.
He looked relaxed, rested and showed no signs of strain, worry or nervous tension.
Repeat Chungking if Department deems advisable.