894A.00/12–749: Telegram
The Consul General at Taipei (Macdonald) to the Secretary of State
[Received December 7—6:50 a. m.]
788. K. C. Wu called unannounced this morning to inform us that Nationalist Government has requested him to assume governorship of Taiwan. He has sent special messenger carrying his acceptance provided following powers granted him: (1) He can establish truly democratic form government there, (2) personally choose his officials, (3) control all national and provincial organs here, (4) attend all military conferences.
Wu claims Generalissimo will accept demands but less certain of Yen.68 Reply may be slow due also to uncertain whereabouts top officials.
Wu assumes Chen Cheng will continue to head southeast command but would have little say in local civil affairs. He mentioned several leading Taiwanese he would want about him, particularly Chiang Wei-chuan. Mentioned unpopularity of C. K. Yen but offered no substitute. Pointed out all governors always control garrison, thus “taking place of General Peng”. General Sun Li-jen should have complete local military responsibility within several months if US aid comes first. Without aid, economy will collapse in two to three months. Confirmed C. K. Yen’s previous estimate that Nationalist gold on island just over one million ounces.
He hopes US will accept change as first step in right direction and give indication of interest and possible aid since all necessary reforms and reorganizations will take months and not succeed if aid not forthcoming on step by step basis.
- Marshal Yen Hsi-shan, President of the Chinese Executive Yuan (Premier).↩